Burlington Electric Department v. Vermont Department of Taxes

The Burlington Electric Department (BED) appeals from a decision of the Washington Superior Court affirming the Commissioner of Taxes’ assessment of a sales and use tax upon the purchase of woodchips used to produce electricity at the Joseph C. McNeil Generating Station in which BED had a 50% ownership interest. We affirm.

The Station is a wood-fired steam electric generating plant. Woodchips are blown by air into a firebox where they are burned to release heat. The hot gases from the fire heat the boiler firebox, converting pressurized water into steam. The steam turns a turbine generator to…