Rural Utility Agrees to 76M Settlement for Overbilling Ft Knox

first_imgNolin Rural Electric Cooperative agreed to pay $7.6 million to the federal government over charges that it billed the Army for energy-saving projects at Fort Knox, Ky., that should never have been authorized, federal prosecutors said Monday.Prosecutors said the Kentucky utility received $8 million for 20 projects that were touted as saving more than $7 million over a decade but actually were estimated to lose more than $15 million over that period, reported the Lexington Herald-Leader.Prosecutors also cited several incidents in which Nolin charged the Army for projects that had not been approved by listing the costs under unrelated, but authorized, projects.The investigation “uncovered criminal acts and millions of dollars in questionable payments,” acting U.S. Attorney John Kuhn Jr. said. The settlement will produce “an important correction” to ensure future compliance with program requirements, Kuhn added.Since 1996, Fort Knox awarded 108 conservation projects valued at about $270 million to the utility. The DOD Inspector General found through an audit that Fort Knox officials did not properly award and manage projects under the installation’s energy program, according to the story.Meanwhile, Fort Knox’s former energy program manager faces charges related to the overbilling scheme. DOD contractor Gary Meredith worked closely with Nolin and later was hired by the utility as its resource energy manager. Dan Cohen AUTHORlast_img read more