Great River Hydro proposes pilot tax-payment agreement for Vernon Station in Hinsdale

Representatives of Great River Hydro presented to the Hinsdale meeting and asked the town to consider a pilot payment or fixed-assessment agreement to stabilize property-tax revenues tied to the Vernon Hydroelectric Station.

Jocelyn Barrett, who introduced herself as “the senior property tax specialist at Great River Hydro,” told the board the Vernon Station — partly located in Hinsdale — is a 37-megawatt facility with 10 generating units and that the company “make[s] up about 14% of the town's annual revenue.” Barrett said the company’s wholesale market revenues are variable and property tax is “our largest expense,” so a fixed payment would provide predictability for both the company and the town.

Barrett and other company representatives described the Vernon Station’s generation as highly variable year to year, saying the plant produced a strong year after July 2023 storms increased river flows. “It varies because some years we have drops, some years we have more water than we can handle,” Barrett said, explaining that when upstream reservoirs fill, downstream stations may spill water rather than generate power.

Board members called the presentation a useful start to conversations about the town’s upcoming revaluation and revenue planning. One member said the proposal was “a great start to a conversation” and advised the town to build on it as the reappraisal approaches. Company representatives said they were willing to draft a term sheet and suggested timing the agreement to align with the town’s budget cycle.

There was no formal action on a pilot agreement at the meeting. Town members and Great River Hydro agreed to continue discussions and follow up with more detailed paperwork and possible term-sheet language.