Vermont Yankee, Vernon settle property tax dispute

VERNON —The Vernon selectboard and Entergy Nuclear Vermont Yankee announced today that they have reached a settlement agreement a property tax dispute that h ad 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

Vermont pension funds to divest from terror-linked countries

MONTPELIER —Vermont’s $3 billion in pension funds will no longer invest in companies and governments linked to terrorist or genocidal activities, the state treasurer announced Monday.

“The policy is intended to ensure that Vermont’s pension investments do not support governments or companies that engage in terrorism or genocide, and to reduce associated risks to our investment portfolio,” said State Treasurer Jeb Spaulding, who chairs the Vermont Pension Investment Committee.

The new policy prohibits investments in governments identified as state sponsors of terrorism, or in companies whose activities contribute to terrorism or genocide or that pose a national security risk, as identified by the U.S. government.

The Vermont Pension Investment Committee will also seek to avoid investing in companies that supply military equipment to terrorist-linked governments or government-associated groups. The committee will also seek to avoid investing in companies that consistently refuse engagement with investors or humanitarian organizations about the steps the companies could take to play a positive role in a country where they operate and that has been identified as a sponsor of terrorism or genocide.

“The policy does not ban all investments in companies operating in countries like Sudan or North Korea. It targets governments specifically, as well as those companies that are known to aid governments or government-related groups engaged in terrorist or genocidal activities,” Spaulding said. Syria and Iran would

Spaulding said the new policy will not have a negative impact on the investment returns for the pension funds.

“There are examples where terror-free investment funds have actually performed slightly better than their non-terror-free counterparts, and there is increasing evidence that companies that partner with terrorist-sponsoring countries can be negatively affected in stock price and image,” Spaulding said.

The treasurer’s office has notified pension fund investment managers of the new policy and has asked them to identify any securities they hold for Vermont that could reasonably be construed to be in conflict with this policy. Spaulding expects the Vermont Pension Investment Committee will consider whether any stocks should be sold at is February meeting.

Posted January 9, 2007

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