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www.times.org
Energy's McJobs Burn Out Quickly Power developers like Calpine seek local tax breaks for economic development, costing schools millions, but produce little income and few jobs in communities
Calpine and others like them have snowed many officials in small communities touting their enormous economic benefits. However, in practice a $350 million power plant may provide less economic benefit to a community than the opening of a new McDonald’s. Even a massive power plant is so fully automated that it would provide between 3 and 35 new jobs. Those jobs are highly specialized; the company will import most of those new workers rather than train and hire local workers from what is often a rural community. A McDonald’s, in contrast, can offer as many as 40 new jobs. A community could profit from a new power plant in two ways. First, during construction. Up to 1,000 workers could be employed over a period of two years, creating a payroll of around $30 million. If local construction workers are hired, the community stands to obtain $30 million. But in practice, many developers import most of their construction workers. They rely on their favored contractors rather than hire locally. In Hermiston, Ore., Calpine used its favorite contractor, TIC, a Colorado company. Only 21 percent TIC’s employees were hired from the Hermiston area, according to documents filed with the Oregon Energy Facility Siting Council. In other words, in the local community only motels, restaurants and liquor stores benefited, but few others. In Chehalis, Wash., TIC imported workers from Argentina rather than hire locally. A second way a community could benefit is from increased property tax revenues from assessments on a $350 million plant. Again in Hermiston, Calpine obtained a tax holiday for five years or more so there will not be any increased taxes until far into the future - if ever. Calpine has applied for tax break at its proposed Turner, Ore., facility. Cogentrix has obtained a tax break for their $500 million plant proposed for Madras, Ore. In Rathdrum, Idaho, local officials enthusiastically touted tax benefits from a new Cogentrix/Avista power plant. But a newly discovered wrinkle in state law meant that all the increased tax revenues would go to the state, not to the local governments. |