Skip to main content

State Senate Approves Vermont Yankee Tax

By Eric McErlain
The new tax increase on Vermont Yankee that we wrote about earlier this week passed the state senate:
Without a word of debate or even a roll call, the Senate voted Wednesday for a bill designed to encourage energy efficiency and renewable energy, along with an increase in the state's tax on Vermont Yankee to pay for it.

The tax on Vermont Yankee's electric generation would claim $25 million from the nuclear power plant's owner, Entergy Corp., between 2009 and 2012. The House is expected to vote on the bill Friday, when it's likely to face debate.

Though the tax is significantly less than a $37 million profits tax the Senate previously proposed, the company and the governor remain opposed to it.

"This is still a case of a deal not being a deal," Entergy spokesman Brian Cosgrove said. "How do we know what's next?"

David O'Brien, commissioner of the state Department of Public Service, called the tax "irresponsible," and said it would hurt utility companies' negotiations for electric rates with Entergy if the nuclear power plant is relicensed in 2012.

O'Brien wouldn't say whether that means Gov. Jim Douglas would veto the bill, but he said the governor's opposition is strong.
That's good news.
Labels:

Comments

Anonymous said…
Idiots. Instead of taxing the polluters, they tax the non-polluters. It's like, "you emit no greenhouse gases, so we're going to tax you to make up for those who do." Punish the innocent and let the guilty off scot-free. Yeah, that makes sense.
May 10, 2007 at 4:50 PM
Anonymous said…
But it does make a kind of sense if you consider taxes as compulsory dividends, or tribute. When legislators and their staffs get tribute from polluters, they find it rewarding to put noneconomic barriers in the way of clean alternatives, i.e. nuclear. If they get some tribute from nuclear, that incentive is reduced.

--- G. R. L. Cowan, former H2 energy fan
Oxygen expands around boron fire, car goes
May 11, 2007 at 5:54 PM
Anonymous said…
I've always viewed taxes as an economic disincentive. A heavier tax burden negatively impacts the bottom line of a business. Encouragement of business generally takes the form of a tax break. That is why the so-called "renewable" energy industry is heavily subsidized through tax breaks and credits. With Vermont Yankee, you have an example of a non-polluting energy source being penalized through selective taxation. Doesn't really send a good message to those concerned about maintaining a clean environment.
May 14, 2007 at 9:30 AM
Post a Comment

Popular posts from this blog

Wednesday Update

By
From NEI’s Japan micro-site: NRC, Industry Concur on Many Post-Fukushima Actions Industry/Regulatory/Political Issues • There is a “great deal of alignment” between the U.S. Nuclear Regulatory Commission and the industry on initial steps to take at America’s nuclear energy facilities in response to the nuclear accident in Japan, Charles Pardee, the chief operating officer of Exelon Generation Co., said at an agency briefing today. The briefing gave stakeholders an opportunity to discuss staff recommendations for near-term actions the agency may take at U.S. facilities. PowerPoint slides from the meeting are on the NRC website. • The International Atomic Energy Agency board has approved a plan that calls for inspectors to evaluate reactor safety at nuclear energy facilities every three years. Governments may opt out of having their country’s facilities inspected. Also approved were plans to maintain a rapid response team of experts ready to assist facility operators recoverin...
Post a Comment
Read more

Activists' Claims Distort Facts about Advanced Reactor Design

By
Below is from our rapid response team . Yesterday, regional anti-nuclear organizations asked federal nuclear energy regulators to launch an investigation into what it claims are “newly identified flaws” in Westinghouse’s advanced reactor design, the AP1000. During a teleconference releasing a report on the subject, participants urged the Nuclear Regulatory Commission to suspend license reviews of proposed AP1000 reactors. In its news release, even the groups making these allegations provide conflicting information on its findings. In one instance, the groups cite “dozens of corrosion holes” at reactor vessels and in another says that eight holes have been documented. In all cases, there is another containment mechanism that would provide a barrier to radiation release. Below, we examine why these claims are unwarranted and why the AP1000 design certification process should continue as designated by the NRC. Myth: In the AP1000 reactor design, the gap between the shield bu...
23 comments
Read more

Nuclear Utility Moves Up in Credit Ratings, Bank is "Comfortable with Nuclear Strategy"

By
Some positive signs that nuclear utilities can continue to receive positive ratings even while they finance new nuclear plants for the first time in decades: Wells Fargo upgrades SCANA to Outperform from Market Perform Wells analyst says, "YTD, SCG shares have underperformed the Regulated Electrics (total return +2% vs. +9%). Shares trade at 11.3X our 10E EPS, a modest discount to the peer group median of 11.8X. We view the valuation as attractive given a comparatively constructive regulatory environment and potential for above-average long-term EPS growth prospects ... Comfortable with Nuclear Strategy. SCG plans to participate in the development of two regulated nuclear units at a cost of $6.3B, raising legitimate concerns regarding financing and construction. We have carefully considered the risks and are comfortable with SCG’s strategy based on a highly constructive political & regulatory environment, manageable financing needs stretched out over 10 years, strong partners...
Post a Comment
Read more