ML12284A427

PSEG Early Site Permit Application, Calculation of Multiplier Effects for Er Section 10.4

ML12284A427
Person / Time
Site:	Salem, Hope Creek, 05200043
Issue date:	10/04/2012
From:	PSEG Power
To:	Office of New Reactors
References
ND-2012-0062
Download: ML12284A427 (5)

Text

VAL 10.4.1.3-001 Page 1 of 5 VAL 10.4.1.3-001 Calculation of Multipliers for Section 10.4 Based on 2006 NEI Reporta Estimated 2004 Indirect/Induced Effects Estimated Operation and Construction PSEG Site Indirect/Induced Effects Projected Percent of Purchases for Projected Projected SGS/HCGS Average Cost Average 2005- 2005-2008 New Plant Projected New Projected Projected Average Average Average Purchases Output New per 2008 Total (Adjusted to Plant New Plant Expenditures Construction Construction Political Jurisdiction 2004c Output Multiplier Employment Employment Purchasesd Purchasesd 2200 Mwe)e Output Employment for Constructionf Output Employment Federal Delaware $ 14,100,000 $ 4,900,000 0.35 49 $100,000 $7,618,649 0.98 $ 4,571,189 $1,588,569 16 $ 14,373,333 $ 4,994,988 50 New Castle $ 14,100,000 $ 4,400,000 0.31 41 $107,317 $6,773,114 0.88 $ 4,063,868 $1,268,158 12 $ 12,906,667 $ 4,027,612 38 New Jersey $ 54,800,000 $ 126,100,000 2.30 1072 $117,631 $72,307,481 9.34 $ 43,384,489 $99,831,826 849 $ 136,986,667 $ 315,219,319 2680 Cumberland $ 816,000 $ 900,000 1.10 10 $90,000 $2,285,912 0.30 $ 1,371,547 $1,512,736 17 $ 4,400,000 $ 4,852,941 54 Gloucester $ 6,100,000 $ 4,700,000 0.77 52 $90,385 $8,351,326 1.08 $ 5,010,796 $3,860,777 43 $ 15,840,000 $ 12,204,590 135 Salem $ 3,700,000 $ 11,700,000 3.16 121 $96,694 $5,779,051 0.75 $ 3,467,431 $10,964,578 113 $ 11,000,000 $ 34,783,784 360 b

Pennsylvania $ 87,600,000 $ 37,200,000 0.42 555 $67,027 $105,793,142 13.67 $ 63,475,885 $26,955,513 402 $ 200,493,333 $ 85,141,005 1270 ROI $24,716,000 $21,700,000 0.88 224 $13,913,642 $17,606,249 185 586 TOTAL DE, NJ, and PA $156,500,000 $168,200,000 1.07 1676 $111,431,564 $128,375,908 1267 4000 a

Nuclear Energy Institute, Economic Benefits of Salem and Hope Creek Nuclear Generating Stations: An Economic study by the Nuclear Energy Institute, September 2006, 48 pages.

b No 2004 employment data available. Numbers derived by subtracting PA employment in Table 3-12 from Other Employment in Table 3-19 of NEI report. NEI Tables 3.1 and 3.6 of NEI report. (473 - 354 = 119) New employment for PA is Table 3-19 total of 674 minus 119 or 555. NEI Tables 3.12 and 3.19 c

No purchases noted in NEI Report for the State of Maryland.

d From Table 2.5-28 e

Salem and Hope Creek Nuclear Generating Stations have a electrical output of 3655 MW (SGS-2390 MWe and HCGS-1265 MWe) and new plant 2200 MWe.

Purchases adjusted by multiplying average 2005-2008 purchases by 2200/3655 or 0.6.

f Based on projected construction cost of $4000 per kW and total overnight cost of $8.8 billion proportioned evenly over six years. Proportion going to each state and county assumed to be the same as for average 2005-2008 purchases.

Economic Benefits of Salem and Hope Creek Nuclear Generating Stations VAL 10.4.1.3-001 Page 2 of 5 Section 3: Economic and Fiscal Impacts The economic and fiscal effects of Salem and Hope Creeks operation go well beyond what the plants spend on employee benefits, purchases, salaries, taxes and wages. They also reflect the strong stimulus that the plants operations provide to key measures of economic activitythe value of electricity production, employment and labor incomein the local and state economies.

Salem and Hope Creeks spending lifts economic activity throughout the local and state economies. Tax payments related to economic activity are another contributing factor. The private sector experiences this effect through increased sales and employment and the public sector through increased tax revenues to support public services.

This report estimated these effects by applying the Impact Analysis for Planning (IMPLAN) model to expenditure data provided by Public Service Enterprise Group (PSEG), operator and part owner of Salem and Hope Creek (for more information on IMPLAN, see Section 6). Each expenditure item was allocated geographically by ZIP code by PSEG.

3.1 Plant Spending in Local Areas Surrounding Salem and Hope Creek Salem and Hope Creek expenditures in the four counties surrounding the plants totaled more than

$170 million in 2004. Of the expenditures in this area, labor represented $145.5 million, while goods and services represented $24.7 million. Spending within this region represents approximately 27 percent of the plants total spending of $617.8 million, and 66 percent of the $256.3 million spent in New Jersey and Delaware.

Table 3-1 summarizes Salem and Hope Creeks spending in each of the four counties surrounding the plants. Total expenditures in Salem County amounted to $58.1 million, including $3.7 million for goods and services and $54.4 million for labor. In Cumberland County, the plants spent approximately $816,000 for goods and services and $17.4 million for labor compensation, amounting to $18.2 million in total expenditures. Salem and Hope Creek expenditures in Gloucester County totaled $44.9 million, including $6.1 million for goods and services and $38.8 million on labor.

Finally, the plants spent $14.1 million for goods and services and $34.9 million for labor in New Castle County, totaling $49 million in expenditures.

Table 3-1. Summary of Salem/Hope Creek Local Expendituresa County/State Purchases Total Compensationb Total Expenditures Salem/N.J. $3.7 million $54.4 million $58.1 million Cumberland/N.J. $816,000 $17.4 million $18.2 million Gloucester /N.J. $6.1 million $38.8 million $44.9 million New Castle/Del. $14.1 million $34.9 million $49 million Local Study Area $24.7 million $145.5 million $170.2 million a Expenditure data provided by PSEG.

b Total compensation includes wages, salaries and fringe benefits.

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VAL 10.4.1.3-001 Economic Benefits of Salem and Hope Creek Nuclear Generating Stations Page 3 of 5 3.2 Plant Expenditures in States Surrounding Salem and Hope Creek In 2004, Salem and Hope Creek spent $356.4 million in New Jersey, Delaware and Pennsylvania.

Labor represented almost $200 million and goods and services represented $156.5 million. Spending within these states represented approximately 58 percent of the plants total expenditures of

$617.8 million. Table 3-6 summarizes expenditures made by Salem and Hope Creek in each of the three states surrounding the plants.

In 2004, Salem and Hope Creeks expenditures for products and services (including labor) in New Jersey totaled $207 million. The plants spent $152 million on labor and $55 million on goods and services. This total includes $121 million dispersed in the three New Jersey counties surrounding the plants, as well as expenditures of $86 million spent in other areas of New Jersey.

Table 3-6. Summary of Salem/Hope Creek State Expendituresa State Purchases Total Compensationb Total Expenditures New Jersey $54.8 million $152.3 million $207.1 million Delaware $14.1 million $35.1 million $49.2 million Pennsylvania $87.6 million $12.5 million $100.1 million Total $156.5 million $199.9 million $356.4 million a Expenditure data provided by PSEG.

b Total compensation includes wages, salaries and fringe benefits.

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Economic Benefits of Salem and Hope Creek Nuclear Generating Stations VAL 10.4.1.3-001 Page 4 of 5 3.5 Economic Impacts by Geographic Area Table 3-12 presents summary economic impacts for each of the geographic areas analyzed. The three economic impact variables are:

x outputthe value of production of goods and services x labor incomethe earnings of labor x employmentthe number of jobs provided.

Economic impacts can be divided into two categories: direct and secondary effects. The direct effects reflect the industry sector and geographical distribution of Salem and Hope Creek spending without any subsequent spending effects.

The direct output effects of Salem and Hope Creek Generating Stations consist of the value of power production from the three reactors, which reached $1.15 billion in 2004. The reports authors used 2004 wholesale market values for electricity from Salem and Hope Creek to determine this value.

The report used wholesale prices because they provide a market value for electricity in the region and plant-specific rates are either unavailable or confidential. The wholesale rate used was

$51.95 per megawatt-hour7, which reflects the average 24/7 price for power in the Mid-Atlantic Area Council subregion in 2004. The revenue, or output value, of the plants includes salaries, taxes, plant purchases, investor returns and consumer benefits. It reflects the total output of products and services associated directly with Salem and Hope Creek. This total includes spending on products and services itemized in the tables presented earlier in this section.

Table 3-12. Economic Impacts of Salem/Hope Creek by Area Indirect/Induced Effectsa Area Output Labor Income Employment Salem County $11.7 million $4 million 121 Cumberland County $900,000 $300,000 10 Gloucester County $4.7 million $1.9 million 52 New Jersey $126.1 million $47.7 million 1,072 New Castle County $4.4 million $1.8 million 41 Delaware $4.9 million $2 million 49 Pennsylvania $37.2 million $16.9 million 354 United States $1.7 billion $628 million 14,730 a

Indirect impacts measure the effect of input suppliers on expenditures by Salem/Hope Creek., while induced impacts measure the effects produced by the change in household income resulting from Salem/Hope Creek expenditures.

7 Source: Energy Velocity/InterContinental Exchange 24

Economic Benefits of Salem and Hope Creek Nuclear Generating Stations VAL 10.4.1.3-001 Page 5 of 5 Table T able 3-19. Impact of Salem/Hope Creek on Industries in Pennsylvania Description Output Labor Income Employment Architectural and Engineering Services $13.8 million $8.9 million 151 Owner-Occupied Dwellings $1.4 million $0 Wholesale Trade $1.1 million $400,000 8 Real Estate $1 million $100,000 5 Inorganic Chemical Manufacturing $900,000 $200,000 2 Pump Manufacturing $800,000 $200,000 3 Food Services and Drinking Places $600,000 $200,000 17 Hospitals $600,000 $300,000 6 Offices of Physicians, Dentists and

$600,000 $400,000 7 Other Health Care Providers Overhead Cranes and Hoists $500,000 $200,000 2 Other $15.9 million $18.5 million 473 Total $37.2 million $29.4 million 674 Table 3-19 presents the 10 industries most affected by Salem and Hope Creek spending in Pennsylvania.

Several sectors affected by the plants operations in Pennsylvania are similar to those in New Jersey and Delaware, such as housing, restaurants and health care services. However, because relatively fewer members of the plants employment base live in Pennsylvania, more plant-related services appear in the 10 most-affected sectors in the state, such as nuclear fuel, pump equipment and crane systems.

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