Federal Judge Dismisses Yankee Suit

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A federal judge has dismissed a lawsuit filed by Vermont Yankee against the state over taxes on the plant that the Legislature passed this year.

Plant owner Entergy had challenged the taxes that the company said increased the reactor’s annual state tax from about $5 million to about $12.8 million.

Supporters of the new taxes say they were designed to replace money the plant paid the state under power boost and waste storage agreements in 2003 and 2005.

Those agreements lasted until last March, when the plant’s 40-year operating license expired. The Nuclear Regulatory Commission approved a 20-year license extension last year.

U.S. District Court Judge Christina Reiss said yesterday federal court lacked jurisdiction over the case and granted to state’s motion to dismiss the challenge.

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