The wind energy transmission line Southern Cross Transmission Company representatives hope to build across north Mississippi would have a $1.05 billion direct economic impact in the state over 30 years, according to an independent economic analysis the company commissioned on its own behalf.
National accounting firm Moss Adams LLP did the analysis, which claims, in addition to the direct impact, the $700 million energy project would generate another $614 million in indirect and induced economic impact and about $246 million in property tax revenues.
The project would also create more than 600 jobs during the construction phase and 23 permanent jobs for continuing operation and maintenance of the transmission line, which is slated to be completed in 2021. The summary said employment from local labor sources during the construction phase would “peak” at about 69 jobs. Southern Cross released the company’s executive summary Monday.
“This is a very conservative snapshot of the projected impacts that will occur as a result of this project,” Southern Cross spokesperson Denton Gibbs said. “And this is being totally driven by private-sector investment.”
A subsidiary of Pattern Energy Group, Southern Cross’ proposed project would lay a 400-mile, 500-kilovolt wind power line from west Louisiana to east Mississippi, with several of its proposed routes crossing Lowndes and Oktibbeha counties. It also proposes a converter station — with an estimated value that falls between $250 million and $350 million — be built in Lowndes County.
Before Southern Cross can begin construction, it must pick a route and file the project proposal with the Public Commissioner’s Office. Public Service Commissioner for Mississippi’s Northern District, Brandon Presley, previously told The Dispatch he would only support the project if Mississippi received the most possible benefits — specifically the converter station where the line ends, access to the power running through the line and a fair shot for Mississippi contractors at being involved in the construction.
Southern Cross representatives sent a copy of Moss Adams’ analysis to the Public Service Commission Monday.
“(The analysis will) definitely be something we look at as a part of the proceeding once the case has been filed,” Presley said. “But none of this has been filed officially with us, and as I understand it by what they said, these are preliminary numbers, so … we’ll just take a look at it when they get something filed with us.”
Presley added he had only skimmed the document when The Dispatch called for a statement, but he didn’t see anything in the analysis that specified Mississippi contractors and their employees would get the construction jobs.
“What I want them to do is try to utilize local contractors as much as possible, and I don’t remember seeing that mentioned,” he said. “Again, this is something they just sent out (Monday) and since it’s not an official part of the record, we’ll wait to see finalized numbers when they actually file something.”
Gibbs said the project will create about 300 construction jobs, and Southern Cross will draw from as much local labor as possible to fill those jobs.
The projections are based on the estimates of a $735 million development cost and $317 million operational costs over 30 years of transmission facilities operations, according to the analysis.
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