The Oswego County Legislature is nearing a settlement with the owner of the James A. FitzPatrick Nuclear Power Plant that would halve the company’s tax obligations within the country in coming years.
Under the proposed settlement, if FitzPatrick closes and begins decommissioning in 2017 as scheduled, operator Entergy would fork over $27.5 million in declining tax payments over five years. Of that total, 65.5 percent would be paid to the Mexico Central School District, 30.5 percent to Oswego County, and 4 percent to the town of Scriba. Entergy officials have insisted the plant will shut down as scheduled, despite the state’s continued efforts to keep it open.
The county legislature will discuss the potential tax agreement at a public hearing scheduled for April 14.
If FitzPatrick continues to operate and generate electricity, Entergy would be on the hook for $12 million per year over five years between 2016 and 2020, or $60 million. If the facility is sold to another generator, the tax agreement is voided.
The potential agreement would settle a tax lawsuit, which Entergy brought against the town of Scriba in 2011, challenging the tax assessment on the plant between 2010 and 2015.
“By entering into this agreement with Entergy, the town of Scriba, Oswego County and Mexico Central School District avoid tax refunds for the years at issue in the tax certiorari proceedings in which the company alleged it was over-assessed,” Oswego County Legislature Chairman Kevin Gardner said in a statement.
Entergy in November announced plans to close the plant by early 2017, citing low natural-gas prices, increased operational costs, and a poor market design. Management claims that shutting down FitzPatrick will save the company as much as $275 million through 2020. But state officials, including Gov. Andrew Cuomo and Assemblyman Will Barclay, have lamented the loss of 600 jobs and the source of 16 percent of the state’s energy.
Entergy spokeswoman Tammy Holden said in a statement Thursday that the company recognizes FitzPatrick’s planned closure is a significant event for the local economy and surrounding communities. “The (proposed payment in lieu of taxes) agreement provides certainty to the local taxing authorities and the company and thus avoids continued costly litigation on both sides,” she stated by email.
Cuomo’s administration has initiated what it calls the Clean Energy Standard, which would provide nuclear power sources access to the same tax credits available to solar and wind sources. The governor’s goal with the plan is to source 50 percent of New York’s power with clean, renewable energy by 2030.
