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Federal Court Dismisses Entergy’s Challenge To Energy Tax

CONTACT: Jonathan Rose, Assistant Attorney General, (802) 828-3176

October 25, 2012

The Vermont federal district court issued a decision today dismissing a challenge brought by Entergy Nuclear Vermont Yankee, LLC and Entergy Nuclear Operations, Inc. (“Entergy”) to Vermont’s Electrical Energy Generating Tax (“EET”). The EET imposes a tax of $0.0025 per kWh of electricity generated by large capacity power plants. The Court found that Entergy’s challenge was barred by federal law which requires that challenges to state taxes be brought in a state forum. Specifically, Judge Christina Reiss rejected Entergy’s argument that the EET is not a “tax” under federal law. In addition, Judge Reiss agreed with the State that Vermont provides Entergy with a “plain, speedy and efficient” opportunity to bring its challenge to the EET in a Vermont forum.

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