Vermont Guardian
January 9, 2007

VERNON — The Vernon selectboard and Entergy Nuclear Vermont Yankee announced today that they have reached a settlement agreement a property tax dispute that had already landed in court.

As a result of the settlement, Entergy and the Town have agreed to jointly dismiss both lawsuits without the need for further litigation. Entergy had filed two lawsuits, one in Windham County and the other in federal district court in Burlington.

The settlement agreement results in a new Tax Stabilization Agreement between Entergy and the town that will run through 2012.

"The Selectboard worked very hard to craft a new tax stabilization agreement that will meet the needs of the town," said Peter Deyo, the board chairperson. "The certainty that the new agreement provides will help the town undertake some of the projects which have been deferred due to lack of funding. We are very pleased with how the negotiations were handled by both parties and we feel strongly the new Agreement is a good deal for the town."

Deyo said town officials held numerous meetings with Entergy since the company appealed the value placed on its nuclear plant earlier in the year.

The power plant was valued at $320 million in FY 2001, steadily decreasing in value to $180 million as of FY 2006. Under the new arrangement, the plant will be valued at nearly $275 million in each of the next two years, and then increase to $300 million by the end of FY 2012.

In 2005, Entergy paid about $1.2 million in taxes. Company and town officials did not say what the company will pay each year under the new agreement.

The town valued the plant at a higher level once its power uprate was approved, and was producing 20 percent more power.

The negotiations were led, in part, by Rep. Patty O'Donnell, R-Vernon, who is also a Selectboard member.

"Entergy is a good corporate citizen and we look forward to a continued positive relationship with the town," said Patricia Galbraith, Entergy's tax officer.

The Selectboard approved the new agreement Monday night