Wed September 12, 2012
Entergy Sues Vermont Over Increased Vermont Yankee Generation Tax
Two Entergy subsidiaries have filed suit against the state of Vermont over a new law that hikes taxes on the Vermont Yankee Nuclear Power Plant from 5-million to nearly 13-million dollars annually.
Entergy Nuclear Vermont Yankee and Entergy Nuclear Operations filed suit in U.S. District Court for the District of Vermont seeking to overturn the legislation signed by Governor Shumlin that substantially increases the plant's annual tax bill. Entergy Vermont Yankee Communications Manager Jim Sinclair.
The lawsuit claims the new tax law is unconstitutional and preempted by federal law. Again, Jim Sinclair.
Earlier this year, Entergy won a separate case in federal court over the state's efforts to close the nuclear plant. That case is on appeal. Vermont Law School Professor of Constitutional Law Cheryl Hanna says the state may also have difficulty defending this lawsuit.
Vermont Yankee’s Jim Sinclair says the company does not mind paying a fair tax rate, and are making provisions to pay what would be due under the old law until the courts resolve the issue.
Governor Peter Shumlin called Entergy's decision to challenge the tax "disappointing". The tax was designed to make up for lost state revenues from agreements that ended on the plant's originally scheduled shutdown date last March.