The town of Rockingham has negotiated a settlement with the owner of the Bellows Falls hydroelectric dam.
The agreement means TransCanada will pay the town $3.1 million in taxes. Rockingham officials notified residents at town meeting yesterday.
The two sides have been negotiating for months about the assessed value of the hydro plant.
They have agreed that the station will be valued at $90 million instead of the $126 million assessed by local listers. As part of the agreement Rockingham will receive $300,000 more a year in taxes.
The two-year contract can be extended by the town into 2010.