VERNON, Vt. (AP) — The select board in the Vermont town of Vernon has signed a contract with the owner of the closing Vermont Yankee nuclear plant that will stabilize the town's tax base through March 2015.
The deal sets the value of the plant at $280 million for the fiscal year while the current assessment is $300 million, Vermont Public Radio reported (http://bit.ly/1ddx7sQ).
The agreement is good for the town because the plant will stop selling power in December, halfway through the contract, officials said. Entergy announced in August of 2013 that it would shut down Vermont Yankee at the end of 2014.
"We negotiated a fantastic one-year contract for the town that really gives us some breathing space. But we all know what the future is," said Vernon Select Board chairwoman Patti O'Donnell.
Vernon has 2,100 residents and an annual budget of $2 million, half of which is covered by taxes from Entergy, she said.
"We have had resources for a lot of years that other areas in our area have not had. So we do have a large budget that needs to be cut," O'Donnell said.
The town is planning a public meeting on Jan. 20 to discuss budget cuts. The board will meet with Entergy again after town meeting to figure out a five- or ten-year tax agreement, O'Donnell said.