HENDERSON — City Commissioners agreed to settle a lawsuit with Big Rivers Electric, pushing the city a step closer to the end of a long-standing dispute with the electric company.

Henderson Municipal Power and Light could receive $6.25 million to settle the lawsuit, which stems from a 2009 spat over whether the city had the rights to sell excess energy it bought from Big Rivers.

Henderson City Commission and Mayor Steve Austin unanimously approved a resolution to accept the settlement at a September meeting.

The deal isn’t final, yet.

Henderson Municipal Power & Light General Manager Chris Heimgartner said he hopes the deal can be closed by the end of this month.

How the utility will spend the money when — and if — it receives the $6.25 million isn’t clear. Heimgartner said he’ll look at what the utility needs and propose ideas to the utility commission.

“A lot of things have been talked about. It’s too premature to talk about it, yet,” he said.

Part of the closing negotiations has to do with how HMPL will go forward with selling excess energy.

The heart of the issue involved surplus power generated at the city’s Station Two power plant, which Big Rivers operates, and who was entitled to use or try to sell that surplus for revenue.

A letter from Henderson Municipal Power & Light Manager Chris Heimgartner informing the City Commission that Big Rivers Electric offered $6.25 million to settle a long-standing lawsuit between the city and the energy company. (Photo: Henderson city records)

In 2012, an arbitration panel ruled the city had the rights to sell that excess energy off for revenue. Henderson Circuit agreed with that decision, as did the Kentucky Court of Appeals. The Kentucky Supreme Court declined to hear the case.

In 2016, the city filed a lawsuit against Big Rivers to recoup money it could’ve earned from selling off the excess energy.

Heimgartner told city commissioners in August that Western Kentucky Energy Corp. offered to pay the city’s utility the $6.25 million to settle the lawsuit “past and future” in regards to excess Henderson energy, according to a letter obtained by The Gleaner.

In September, commissioners passed a resolution to accept the settlement.

Attorney Randall Redding said the lawsuit and figuring the finer details of the arrangement with excess energy is very complex. He wants the settlement to be done right “to the benefit of everybody’s customer,” Redding said.

“We’re hoping we can conclude this,” he said.

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