Posted: Saturday, October 5, 2013 --- 5:38 p.m.
COLUMBIA, S.C. (AP) -- The University of South Carolina is settling a dispute over a disappointing power plant that was supposed to generate electricity from scrap wood chips.
The State newspaper reported Saturday (http://bit.ly/1a1iTEK) that Milwaukee-based Johnson Controls is agreeing to pay $14 million owed on the nearly $20 million plant, remove biomass equipment inside and give USC the empty building.
The company has paid the Columbia campus nearly $8 million to cover losses from the plant, which has been idle since 2011. The university's contract said Johnson Controls would make up any difference if the power plant didn't save the school $2 million a year in energy costs.
USC chief financial officer Ed Walton says the plant never worked out. The school now gets power from four natural gas plants.
Copyright 2013: Associated Press