JAY – Selectmen voted Monday to hold a special town meeting Nov. 6 to transfer $150,000 from the undesignated fund to the legal services account to defend the town in a valuation dispute.

Androscoggin Energy LLC, which formerly owned a natural gas-fired power plant here, filed for Chapter 11 bankruptcy protection in 2004. The company filed a lawsuit in bankruptcy court against the town earlier this year claiming the power plant, equipment, machines and real estate were overvalued by the town and instead were worth $10 million for each of 2004 and 2005.

The natural gas-fired cogeneration plant that produced steam and electricity until it was idled in November 2004 is valued by the town at $114.68 million for 2004-05 and $117.17 million in 2005-06 for equipment, machinery and real estate. Jay assessed it nearly $1.9 million in taxes in 2004-05 and $1.81 million in taxes this tax year.

The 3-0 vote to hold the special meeting came after an executive session with town attorney Michael Gentile, board Chairman Bill Harlow said Tuesday.

Selectmen Barry McDonald and Steve McCourt were absent from Monday’s meeting.

The special town meeting is scheduled for 6 p.m. Monday, Nov. 6, at the Jay Middle School cafeteria.

The town has about $5 million in its undesignated fund.

The $150,000 would be used to help the town defend itself, including paying for an expert witness against the claims of Androscoggin Energy, that its facility was overvalued by more than 1,000 percent on April 1, 2004, and April 1, 2005, according to a memo from Gentile.

The power plant, now owned by Verso Paper, was given to International Paper in March to settle $90 million in claims against Androscoggin Energy.