RICHMOND, Va. (AP) — A Virginia judge has approved a $2.5 million class-action settlement between a city agency and public housing residents who say they were overcharged for electricity.

The Richmond Times-Dispatch reports the settlement between the Richmond Redevelopment and Housing Authority and its current and former residents was approved Tuesday. The February 2017 lawsuit alleged the Authority violated federal law by failing to establish proper electricity utility allowances, resulting in excessive charges.

The settlement says $1.18 million will be distributed to residents who were subject to the surcharges from November 2012 through October 2016. A Legal Aid Justice Center release says the Authority also will pay nearly $113,000 to tenants through new utility allowances. It says the allowances will mean reduced charges worth nearly $1.3 million over the next three years.

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Information from: Richmond Times-Dispatch, http://www.richmond.com