Worcester To Pay More Than $35M To Holden In Sewer Use Rate Case

WORCESTER, MA — Worcester has reached a settlement agreement with the Town of Holden in its sewer use rate case.

The city will pay Holden a total of $35.5 million over the course of three years, City Manager Eric D. Batista announced on Wednesday. The case "Town of Holden v. Department of Conservation and Recreation and City of Worcester" involved an allegation that the City of Worcester was overcharging Holden for sewer service.

In 2022, a jury found that Worcester had overcharged Holden, and in 2023, a judge ordered the city to pay Holden more than $26 million, plus interest, according to Spectrum News 1.

Now, according to the city, Worcester will send an initial payment of $10 million from the municipality's sewer reserve by Apr. 1. A subsequent payment of $10.5 million will be sent on July 1, and beginning July 2027, Worcester will make three annual payments of $5 million to Holden.

The Town of Holden is forgiving interest accrued after February 2026 and ceasing interest moving forward as payments are made, as part of the negotiated terms, the city said. That saves Worcester $4.5 million in potential interest.

“This has been a long, complex legal case,” said Batista. “As City Manager, my goal has always been to act in the best interest of our residents. In this situation, that meant exhausting all legal options. We accept that the courts have spoken and I have negotiated what I am confident is the best possible outcome – spreading out judgment payment over the course of three years and eliminating interest accrual to have the least amount of impact to Worcester ratepayers."

Batista added that he will present a report to the City Council detailing the impact on ratepayers in the coming weeks.

See Also:

• Unique Restaurant With Ecuadorian, Peruvian Menu To Open In Worcester
• Worcester Firefighter, Veteran To Run 2 Marathons In 2 Days To Honor Service Members