Economic impact of the Zephyr Power Transmission Project
The states and communities in which the Zephyr project will be constructed will benefit from significant job creation, higher GDP, and increased tax revenues. While the project is in its preliminary stages, a recent study of the economic impacts shows that in total the Zephyr project will provide these overall benefits during the development and construction phase (2013-2020) across the states:
- 11,750 total jobs created
- $1.1 billion in total spending
- $1 billion in total additional economic output
- $97 million in tax revenues
Benefits to communities along the route
Jobs – The direct jobs created by the Zephyr project will result in an increase in demand for other goods and services. Construction workers and engineers will spend a portion of their salaries on food, lodging and recreation in the vicinity of the construction areas. The additional revenues and sales may enable local businesses to increase staff and/or investments. In addition, the project will incur direct spending in impacted counties, including permit fees and installation costs paid to the local and state governments. During the construction phase, a total of more than 1,470 direct, indirect and induced jobs are expected to be created per year.
Economy – State and community Gross Domestic Product, or GDP, is expected to rise significantly during Zephyr’s construction. As a consequence of the new line, the economies of the four states will benefit from an average economic stimulus of approximately $133 million per year.
Tax revenues – Economic activity brought about by the Zephyr project will increase tax revenues generated in the counties and states crossed by the new transmission line. On average, an additional total tax revenue generation of $97 million is forecasted–an average of $12 million per year.
Benefits by state
|State and County||Miles crossed by proposed route (miles)||Estimated total jobs created from 2013-2020||Estimated increase in GDPs for 2013-2020 ($ nominal millions)||Estimated tax revenue increase for 2013-2020 ($nominal millions)|
|Sweetwater County (SE corner)||20.67||115||$10.7||$0.4|
|Rest of Wyoming||0||257||$29.1||$0.8|
|Rio Blanco County (NW corner)||4.3||27||$2.1||$0.5|
|Rest of Colorado||0||1,242||$139.4||$13.6|
|Sanpete County (NW corner)||4.03||68||$3.7||$0.7|
|Rest of Utah||0||1,072||$112.7||$13.9|
|Rest of Nevada||0||26||$20.3||$0.6|
Economic benefits following construction
When Zephyr project goes into commercial operation in 2021, in-state spending in the four states will continue as DATC will perform operation and maintenance, and pay taxes, service fees and leases. During the first five years of commercial operations, DATC expects total in-state spending of approximately $220 million or an average of $44 million per year.