Geneva agrees to settle lawsuit against Nicor

Geneva has agreed to settle its lawsuit against Nicor that alleged the natural gas utility damaged the city's electrical power plant.

The city council Monday night agreed to accept $233,000 plus the costs of mediation.

The settlement must still be entered into the court record and accepted by the judge. The lawsuit was filed in Kane County.

In 2004, Geneva built a power plant on Averill Road to supply additional electricity when demand was high - such as on hot summer days - instead of paying ComEd higher-use peak rates for that extra electricity. Peak rates were nearly 36 percent higher than normal rates, and the city estimated it was paying those peak rates up to 30 percent of the time.

The plant's five turbines are powered by natural gas.

In 2007, the city filed suit, arguing the turbines were damaged by rust dust from an eight-inch gas main installed to serve the plant. The city claimed the dust clogged filters, thus causing all five turbines to shut down during a test run in early January, 2005.

The suit said the city spent $105,000 on parts and labor to repair the turbines, plus $232,000 extra for natural gas from a third party. The city contended Nicor should have cleaned the pipe.