Interested in learning more about power plants? Click here.
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?