Bryan Cohen Jan. 15, 2013, 7:53pm

BOSTON (Legal Newsline) - Massachusetts Attorney General Martha Coakley reached a settlement Tuesday with Honeywell to resolve allegations that the company included superfluous upgrades as part of an energy conservation program.

In 2008, Honeywell completed work on a $32.8 million energy efficiency and conservation program in the city of Quincy. The company attempted to save energy and operating costs for the city by working on a variety of improvements. The project was signed under a state law, Chapter 25A, which allows Massachusetts municipalities to enter into long-term energy savings performance contracts.

Coakley's office questioned whether the law enabled Honeywell to include new water meters in the bundle of upgrades the company performed, which involved changes to more than 40 schools, municipal facilities and commercial facilities throughout Quincy.

Under the terms of the settlement, Honeywell will pay $4 million to the state and will notify the state of any future water meter replacement projects falling under the statute. Honeywell will also have no ongoing maintenance and performance requirements, making the city responsible for all related equipment and expenses in the future.

As part of the work performed under Chapter 25A, Honeywell made hundreds of upgrades to facilities in Quincy between 2007 and 2008. This included the installation of more than 600 new commercial water meters to replace inaccurate and aging meters.

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