BIDDEFORD — The Maine Energy Recovery Co. announced Monday that it has won an $11.5 million award in an 8-year-old dispute with General Electric Co. over the construction of a faulty trash-to-energy incinerator.

The award, issued by a panel of three attorneys who acted as arbitrators, bolsters a lawsuit by the cities of Biddeford and Saco against GE in federal court, according to an attorney who led MERC’s legal team.

“This was an extremely hard-fought battle, as you can tell from the 103 days of hearings. This was a major grudge match,” said attorney Gordon Grimes of Portland. He characterized the arbitration proceedings as “nasty.”

In August 1988, MERC severed its construction, operations and maintenance contracts with GE and filed for arbitration because of problems with odor and ash releases, as well as poor plant performance.

GE spokesman Joe Conroy said Monday that the corporation won’t appeal the arbitrated settlement.

“Quite frankly, we’re in a position where we’re seeing an end to this contract dispute,” said Conroy. GE refused to accept blame for the plant’s ash, noise and odor problems.

“There is nothing in the arbitration proceedings that has dissuaded GE on the long-held belief that the original design and execution of the facility was indeed sound,” Conroy said.

MERC racked up an estimated $3.5 million in legal fees between the time the hearings began in January 1990 and ended in July, Grimes said.

Approximately 5,000 exhibits and 18,000 pages of transcripts were produced, he said. Many of the documents were made available to attorneys for Biddeford and Saco as they prepare their own case against GE.

The $11.5 million award strengthens MERC’s financial position, said Floyd Gent, vice president of operations at KTI Energy, the parent company of MERC’s managing general partner.

Gent said the company spent more than $11 million retrofitting the plant, including repairs to prevent ash releases like those that caused complaints from residents in October 1989.

MERC announced in August 1989 that it needed to renegotiate new contracts with its member 15 municipalities or face bankruptcy.