NORTH ATTLEBORO - North Attleboro Electric has followed through on its decision to cut its annual $300,000 payment to the town by $18,000 to take back money it is owed for worker's compensation overpayments made in past years.

With the town already facing budget difficulties, Selectman Michael Thompson expressed disappointment that the electric department has decided to cut the money.

He pointed out that North Attleboro Electric General Manager Jay Moynihan was working as town administrator when the overpayments were made.

"I find it fascinating that the same people promoting this are the same people that created the situation in the first place," Thompson said. "This isn't right. I don't understand why Mr. Moynihan is pushing this down our throats."

Thompson asked for copies of the auditor's reports, which he said should have pointed out the error years ago. North Attleboro Electric overpaid its worker's compensation costs in the 2004 and 2005 fiscal years. The municipal utility has twice attempted to get the $18,000 back at town meeting, but the move was rejected both times at the recommendation of the town's finance committee.

Moynihan referred questions about the issue to the electric commission, which approves the annual payment in lieu of taxes figure.

Electric Commission Chairman Thomas Corrigan said both the town and the finance committee were notified months ago that the money would be deducted from the electric department's annual payment in lieu of taxes.

"With all the problems they have with the budget, $18,000 is pretty minuscule. They were well aware that if we didn't get the money at town meeting, we were going to deduct it." Corrigan said. "This is money that was owed to the rate payers."

The problem with the overpayment occurred because the utility pays its share of workers' compensation to the town in a projected bill that was based on payroll estimates. When a final figure was issued in 2004 and 2005, the money owed by North Attleboro Electric was less than the department had already paid, but a refund was not provided.

The electric department's business manager reviewed the invoices, and noticed that the town owed the department $10,800 for fiscal year 2004 and $7,510 for fiscal year 2005. The information was received in mid-2006 and the department worked with the town for more than a year before submitting the first of the two articles to town meeting.