The settlement reached between Lake Township and American Electric Power in their state tax tribunal dispute over the value of the Cook nuclear power plant will have an effect on the budgets of several local governments in Berrien County, but it could have been worse.

Berrien County Administrator Brian Dissette told the Berrien County Board of Commissioners in November of last year Cook was seeking to have its taxable value reduced by 30%. The settlement announced on Tuesday would have the plant’s value reduced by 12%.

Although Dissette couldn’t comment Wednesday on any numbers, he told us it’s better to have a deal than to continue the fight.

“In reaching that settlement, it ensures that we won’t have ongoing litigation, and it just provides clarity to all of the taxing jurisdictions,” Dissette said Wednesday. “With having the settlement reached, all of the taxing units involved, including the township, the county, and the schools, all have a solid framework and understanding of what to expect for the coming years.”

Last year, Dissette told commissioners the 30% sought by AEP would have an impact on the county of between $3 million and $3.5 million.

Speaking to us Wednesday, Dissette said one positive of the settlement is that it won’t require any taxing entities to issue refunds to AEP. Under the deal, Cook’s valuation is placed back at its 2022 level. It will start to rise again in 2028.

The state still has to approve the settlement.