When power plants power down, how does it affect the community?

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A fire at the NRG Power Generating Station on January 18th did little damage to the facility and won't change the company's deactivation plan in 15 months.  However, it is a reminder to the Lebanan Township that soon enough, this plant will be gone and the tax revenue they receive will be gone with it.

This is a big concern for those that live in the community.  The money the township received from this peaker plant has off-set costs for decades.  They receive about $2.5 million annually in Energy Tax Receipts, which is about 45% of the town's annual budget.  Now, with the peaker plant shutting down in a little more than a year, the residents of this town will see a huge increase in taxes.

This begs the question, what do cities do when a plant shuts down and they lose the revenue?  How can they make up the money without raising taxes to the point that the town turns into a ghost town?

Read more about the Lebanan Township here.