MINNEAPOLIS, Jan. 15, 2013 /PRNewswire/ -- Honeywell (NYSE: HON) announced today it 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 M.G.L. c. 25A, §11I (Chapter 25A) — a new state law enabling Massachusetts municipalities to enter into long-term energy savings performance contracts.
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, which included changes to more than 40 municipal facilities and schools, and commercial facilities across the city.Honeywell is one of the world's leading energy services companies, and has completed almost 5,000 guaranteed savings projects that have helped cut billions in energy and operational costs for organizations from cities and school districts to hospitals and military bases. "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, as well as a significant boost in revenue. 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." The settlement agreement resolves all outstanding issues between Honeywell, the Attorney General's Office and Quincy. Honeywell will pay $4 million to the commonwealth and agrees to notify the state of any future water meter replacement projects that fall under the statute. Quincy has likewise agreed that Honeywell will have no ongoing performance and maintenance requirements. The city will be responsible for all related equipment and expenses going forward. The work in Quincy was the first performed under Chapter 25A. As part of the project, Honeywell completed hundreds of upgrades to municipal facilities and schools between 2007 and 2008. In addition, it installed more than 600 new commercial water meters to replace aging and inaccurate meters, which were costing the city significant revenue and undue operating costs. Honeywell ( www.honeywell.com) is a Fortune 100 diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; turbochargers; and performance materials. Based in Morris Township, N.J., Honeywell's shares are traded on the New York, London, and Chicago Stock Exchanges. For more news and information on Honeywell, please visit www.honeywellnow.com. This release contains "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of fact, that address activities, events or developments that we or our management intend, expect, project, believe or anticipate will or may occur in the future are forward-looking statements. Forward-looking statements are based on management's assumptions and assessments in light of past experience and trends, current conditions, expected future developments and other relevant factors. They are not guarantees of future performance, and actual results, developments and business decisions may differ from those envisaged by our forward-looking statements. Our forward-looking statements are also subject to risks and uncertainties, which can affect our performance in both the near- and long-term. We identify the principal risks and uncertainties that affect our performance in our Form 10-K and other filings with the Securities and Exchange Commission.
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