Document Type

Report

Publication Date

2-2009

Keywords

Maine Power Reliability Project, construction projects, economic impact, Central Maine Power, MCBER

Abstract

Central Maine Power Company (CMP) proposes to invest in a significant upgrade to much of its high voltage transmission system in central and southern Maine in order to increase reliability in the future and to meet Federal standards for the nation’s electricity grid. The project, known as the Maine Power Reliability Program (MPRP) is expected to cost an estimated $1.5 billion and to be implemented over the four year period from 2009 to 2012.

Large construction projects such as MPRP typically have a different type of impact on the economy than, for example, a new manufacturing plant. Construction and related jobs are by their nature temporary, with construction workers moving from project to project. The short term nature of construction projects means most of the indirect jobs estimated through economic impact analysis represent current jobs that are supported by the direct construction activity rather than new jobs. However, if implemented as planned, the activity associated with MPRP will be taking place a time of substantial slack in the economy, particularly in the construction industry. Thus, a larger, but unknown, portion of the jobs associated with the MPRP will be “new” in the sense that they would not otherwise exist but for the project.

Comments

A report from the University of Southern Maine Maine Center for Business and Economic Research prepared for Central Maine Power

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