Honeywell Pays $4 Million Resolving Dispute Over Water-Meter Upgrades

by | Jan 17, 2013

Honeywell has reached a settlement agreement with the Massachusetts Attorney General regarding a $32.8 million energy efficiency and conservation program launched more than five years ago with the City of Quincy, Mass.

In 2008, Honeywell completed work on a variety of improvements designed to save energy and operating costs for Quincy. The project was signed under a new state law enabling Massachusetts municipalities to enter into long-term energy savings performance contracts. As part of the project, Honeywell completed hundreds of upgrades to municipal facilities and schools. It also installed more than 600 new commercial water meters.The Attorney General’s Office subsequently questioned whether the law allowed Honeywell to include new water meters in the bundle of upgrades the company performed.

To settle the dispute, Honeywell has agreed to pay $4 million to the commonwealth and will notify the state of any future water meter replacement projects that fall under the statute. The settlement effectively ends the energy savings performance contract, and Honeywell will have no ongoing performance and maintenance requirements. The city will be responsible for all related equipment and expenses going forward.

The settlement agreement resolves all outstanding issues between Honeywell, the Attorney General’s Office and Quincy.

“We believe that the Massachusetts statute does not prohibit the use of water meters in an energy program, although we had a disagreement with the Attorney General’s office on this point, resulting in this settlement,” said Tom Hamilton, general manager of Honeywell Building Solutions. “We feel strongly that the energy efficiency improvements and new water meters are delivering energy and operational savings to the city. The guaranteed savings would have been met if the city had proceeded with the maintenance portion of the contract, but we agreed to settle with the Attorney General to avoid spending more time and legal expenses on the matter.”

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