Wind Power and the Maine Economy

Charles S. ColganProfessor of Public Policy & Management

Muskie School of Public ServiceUniversity of Southern Maine

Impacts v. Benefits

• Impacts: Changes in the levels of economic activity in Maine• Employment• Economic Output• Wages

• Benefits• Reductions in price• Increases in reliability• Changes in environmental values

Trans CanadaKibby Project

132 MW

First Wind

Stetson I and II83 MW

First WindMars Hill42 MW

Projects Examined:

257 MW

Construction Period Expenditure Profile

200320042005200620072008200920100

10

20

30

40

50

60

70

80

90

100

Professional & Technical Services

Food & Lodging

Construction

  TotalConstruction $197.82Food & Lodging $1.31

Professional & Technical Services $23.67Total $222.79

Employment Profile

0

100

200

300

400

500

600

Prof & Tech ServicesFood & LodgingConstruction

Employment in the Project Regions

2003

2004

2005

2006

2007

2008

2009

2010

0100200300400500600700800

Wesern MaineEastern MaineAroostook

WIDESPREAD IMPACTS

Excluded from the Impact Analysis

Eastport

Searsport

Offshore:Similar to Onshore with Marine

Component

Operating Period EMPLOYMENT

Routine Operations & Maintenance

~30 Direct15 IndirectTotal ~45

“Jobs”

• Jobs “created”• Construction

• “Full time”?

• Jobs “supported”• Professional & Technical• Restaurant & Lodging• Indirect Jobs

Taxes

• Taxes are transfers: they are neither costs nor benefits in determining the ultimate economic value of an investment

• Modest gains in state taxes• Property taxes of large energy

projects in small communities• Large increases in valuation

• Decreases in tax rates• Increases in local services

Costs and Benefits

•Costs:• Project expenditures in construction

and operating period• Reductions in wild land values

•Benefits• Price reductions• Reliability credits• Avoided environmental costs