WASHINGTON, D.C.—The operation of Dominion’s Millstone Power Station generates average annual economic benefits of almost $1.3 billion in Connecticut and $1.3 billion in other New England states, for a total of more than $2.6 billion annually, according to a new economic analysis.
The Nuclear Energy Institute study, “Economic Impacts of the Millstone Power Station,” analyzes the plant’s economic benefits today and over the next 15 years. Between 2016 and 2030, Millstone’s operation will generate more than $12 billion in economic benefits in Connecticut. It also determined that by 2030 Millstone will have provided over $6 billion in benefits from avoided emissions.
In addition to the substantial economic output, the two reactors support the region’s critical energy infrastructure. They reliably generate 2,111 megawatts of around-the-clock power, about 59 percent of Connecticut’s total electricity demand.
While generating reliable, clean electricity, Millstone supports thousands of jobs in Connecticut and the rest of New England. NEI found that the total number of jobs supported by Millstone annually includes almost 4,800 jobs in Connecticut, and more than 7,300 in the rest of New England, for a total of more than 12,000 jobs.
“The study confirms that the Millstone nuclear power plant greatly strengthens the local, state and regional economies through job creation, tax payments, and direct and secondary spending,” said Revis James, NEI’s vice president for policy development. “It also shows that Millstone and its employees are important to the quality of life of those who live in the communities around the facility. Millstone is a powerful economic engine, a critical component of New England’s energy infrastructure, and a critical source of clean energy for Connecticut and New England.”
“This study shows that Millstone is a major energy asset for Connecticut and plays a vital role as an economic engine benefiting the local community and thousands of workers in the state,” said Dan Stoddard, senior vice president and chief nuclear officer – Dominion Generation. “We are an active corporate citizen in southeastern Connecticut and are committed to providing low-cost, carbon-free, around-the-clock electricity to benefit customers.”
Key findings of NEI’s study include:
- Millstone is a highly reliable source of electricity: In 2015, Millstone operated at 96 percent of capacity, a measure of electricity reliability; that is several percentage points above the industry average and significantly higher than other forms of electric generation. Other key factors of nuclear’s reliability are the 18 to 24 month fuel supply, and the ability to generate electricity during extreme weather conditions. This reliable production helps offset the potential price volatility and intermittency of other energy sources.
- Millstone supports more than 12,000 jobs in New England: Millstone supports 2,737 jobs from its operation and 2,062 jobs as a direct result of lower electricity prices in Connecticut, for a total of 4,800 jobs in the state. It also supports 523 jobs from its operation and 6,784 jobs because of lower electricity prices in the rest of New England for a total of over 12,000 jobs in the region. These low prices also contribute an additional $400 million in economic benefits to Connecticut and $1.25 billion in the rest of New England.
- Millstone is one of the largest taxpayers in Connecticut: Millstone’s operation is estimated to contribute approximately $40 million in local and state taxes. These payments support local schools, police and fire departments, and other important public services. The company’s expenditures also increase economic activities that yield additional tax revenue.
- Millstone’s annual spending creates a huge ripple effect: Millstone’s operation generates $873 million of annual economic output statewide and another $81 million elsewhere in New England. Between 2016 and 2030, Millstone will generate $12 billion in economic output in Connecticut. This study finds that for every dollar of output from Millstone, the state economy produces $1.20. The power station’s operation contributes $637 million to Connecticut’s gross state product each year.
- Millstone provides exceptional clean air benefits for Connecticut and New England: Emission-free electricity from Millstone prevents the release of 8.3 million metric tons of carbon dioxide annually. Assuming this continued performance, by 2030 Millstone will have provided more than $6 billion in benefits from avoided emissions based on clean air calculations established by the U.S. government (Technical Update of the Social Cost of Carbon for Regulatory Impact Analysis Under Executive Order 12866, Interagency Working Group on Social Cost of Carbon, United States Government, July 2, 2015).
“As evidenced by the NEI study, the Millstone Power Station plays a vital role in helping Connecticut and New England meet their demand for affordable, reliable and sustainable energy. Continued operation of the plant is crucial to the region’s economic and environmental health for many years to come,” James said.
Study Methodology:
NEI conducted the analysis using a nationally recognized model to estimate the facility’s economic impacts on the state and national economies. Regional Economic Models Inc. developed the Policy Insight Plus (PI+) economic impact modeling system, which is the methodology employed in this analysis.