03.17.2009
New Report Highlights Economic & Community Benefits of Longview Power Plant
March 17, 2009 - Morgantown, W.Va. - A detailed Economic and Fiscal Analysis Report released today profiles the substantial short- and long-term economic benefits expected from the Longview Power project now under construction in Maidsville, W.Va. According to the Report, which examines impacts from the construction and operation of the facility on jobs, production, labor income, and government revenues, Longview Power will produce significant economic and fiscal benefits for Monongalia and Preston Counties, adjacent counties in Pennsylvania, and the State of West Virginia. These benefits will significantly cushion the region from the economic downturn gripping most of the nation.
Longview Power is a 695 (net) megawatt supercritical pulverized coal-fired generating facility employing an advanced technology proven to operate with higher combustion and environmental control efficiencies. Once operational in early 2011, the project will supply needed power to a region with growing electricity demand and limited new power capacity. Longview Power will employ approximately 88 full time workers and an additional 12 employees in an administrative office in Morgantown. According to the Report, Longview Power's operations will also indirectly generate an additional 467 higher-than-average paying jobs in the region while current construction will add as much as 2.8% to annual employment growth in the region.
The Report provides an independent analysis of data that was derived through standard economic models widely used by economists, extensively reviewed in academic journals, and publicly available from federal and state government agencies. It highlights the composition and performance of the regional economy as a basis for evaluating the impacts of the Longview facility during construction and then during ongoing operations.
Some of the aggregated findings outlined in the Report include:
- Over $551 million of direct expenditures are estimated to be made in Monongalia and Preston Counties, and adjacent counties in Pennsylvania, during the four year construction phase of the project;
- Construction of the project will directly support 984 local jobs, on average, in each year of the construction phase;
- An estimated additional 991 jobs will be supported in Monongalia and Preston Counties, and adjacent counties in Pennsylvania, for each year of the construction phase for a total of 1,975 jobs in West Virginia and Pennsylvania;
- An estimated $313.8 million in labor income (or $78.5 million each year of the construction phase) will be earned in Monongalia and Preston Counties, and adjacent counties in Pennsylvania, as a result of Longview's construction;
- Construction of Longview Power and the economic activity it generates will produce an estimated $23.6 million in additional state and local tax revenues over the four year construction phase;
- Operation of Longview Power will increase state and local revenues by $7.9 million annually, and increase annual labor income in Monongalia and Preston Counties, and adjacent counties in Pennsylvania, by $43.0 million; and
- Longview Power's purchase of coal from mines in the region will increase regional employment by over 500 jobs, with up to 260 of these jobs projected to be added in Pennsylvania.
The Longview Power Plant is owned by Longview Power, LLC, which is in turn owned by GenPower Holdings, L.P. ("GenPower Holdings").
About GenPower Holdings, L.P.
GenPower Holdings, L.P. is a joint venture of GenPower management and First Reserve, a leading global private equity firm. The joint venture was formed in October 2006 to pursue the development, ownership, acquisition and operation of power generation facilities in the United States and abroad. Longview Power is the first major investment by the joint venture. GenPower's management team includes power industry veterans who have extensive experience in power project development, finance, construction and operations. For more information on GenPower and Longview Power, please visit our website at www.genpower.net.
About First Reserve
First Reserve is the world's leading private equity firm in the energy industry. For more than 25 years, it has invested solely in the global energy industry, and has developed an unparalleled franchise, utilizing its broad base of specialized energy industry knowledge. First Reserve invests strategically across a wide range of energy industry sectors, developing a portfolio that is diversified across the energy value chain, backing talented management teams and building value by building companies. Further information is available at www.firstreserve.com.
Contact:
Cathleen Williamson, Public Relations Director
(603) 431-0816
cwilliamson@calypsocom.com