The state’s waste disposal and recycling agency will pay $8.3 million to the Metropolitan District (MDC) to settle a long-running legal dispute over a trash-plant operating contract that spanned nearly three decades.
In arbitration since 2009, the dispute between MDC and the Materials and Recycling Authority (MIRA) related to MDC’s operation of MIRA’s Mid-Connecticut project from 1984 to 2011.
MIRA, previously called the Connecticut Resources Recovery Authority, accused MDC in 1999 of overcharging the agency for the operating contract to the tune of $1 million per year.
A previous lawsuit and mediation had failed to resolve the dispute.
“MDC and MIRA are both pleased that this matter has been resolved on equitable terms,” the two quasi-public entities said in a statement this week.
They said the settlement covers project costs, including future retiree pension and future retiree medical costs.
MIRA will pay MDC out of its waste-to-energy plant’s reserve fund, which means none of the municipalities that use the plant will be required to pay extra, MIRA said.
