NORWICH, CT – May 6, 2019 – The Connecticut Municipal Electric Energy Cooperative (“CMEEC”) today issued the following statement regarding the resolution of its arbitration proceedings with the Town of Wallingford:
Statement
“We are pleased that the arbitrator ruled with CMEEC on the vast majority of the claims at issue. CMEEC’s strenuous defense over the past 5 years resulted in a settlement at an amount dramatically lower than what was originally sought, consistent with the best interests of CMEEC and its members. We can now put this matter behind us as we continue to deliver on our mission of providing reliable, low cost energy for the benefit of CMEEC member municipalities and the rate payers they serve.”
Key Supporting Information
To put this all in context, Wallingford raised 13 claims in the arbitration, reportedly seeking $18 million in overcharges.
- The arbitrator ruled in favor of CMEEC in nearly every claim.
- Wallingford prevailed in just one claim in full and another claim in part.
- The settlement amount is a result of the interim rulings during the course of the arbitration that applied damages and interest dating back to 2014.
- Nearly $750,000 of the $3.67M is a result of interest on the principal amount owed under the settlement. (Note: The interest rate is ~10%”)
- The settlement includes approximately $180,000 that was due for 2018 for the two contracts that continued to be at issue in the arbitration.
- Because this was a settlement between the parties, there will not be an appeal.
- For reference, there are no other outstanding arbitrations or similar matters at this time.