Pattern Energy Group LP (Pattern Development) announced its affiliate’s proposed Southern Cross Transmission project will provide significant economic benefits within Mississippi, including $1.9 billion in total direct, indirect, induced and fiscal economic impact, according to an independent study conducted by Moss Adams LLP. The project will have wide-ranging short- and long-term impacts on the local area economies, the study found. In total, the project would produce $3.9 billion in total direct, indirect, induced and fiscal economic impact across Mississippi and Louisiana.
The Moss Adams study found the Southern Cross Transmission project would provide the following benefits:
- Produce nearly $735 million of direct economic impact from expenditures incurred in development and construction in Mississippi
- Generate $316.5 million of direct economic impact in local operations and maintenance expenditures over the first 30-year analysis period of the project
- Produce $614 million in indirect and induced impact
- Generate $246 million in fiscal impact via property taxes across Mississippi over the first 30-year analysis period of the project
- Create more than 300 jobs in Mississippi throughout the project’s construction and continued operation
- Benefit electricity consumers with reduced annual wholesale electricity cost “The Southern Cross Transmission project would be the only project to connect low-cost renewable energy in Texas to the Southeast while also creating jobs and generating strong economic impact in both the southern states and Texas,” said Mike Garland, CEO of Pattern Development. “The Southern Cross project will be one of the nation’s first overhead HVDC transmission lines constructed in nearly two decades. When complete, the project will provide significant reliability and economic benefits by connecting two robust systems. All of the capital investment required for the project is being provided by private investors.”
The Southern Cross Transmission project is a ±500 kilovolt high voltage direct current (HVDC) transmission line with a base load capacity of 2,000 Megawatts (delivered in either direction after losses) that will link abundant and cost-competitive wind energy in Texas to the transmission grid and customers in the Southeast. The benefits of the project to both regions include the production and utilization of additional renewable energy, economic development, regional power market economic benefit, and increased electrical reliability through providing access to the diverse generation resources in each region. The project is expected to start construction in 2018 and begin delivering power in 2021.
The Moss Adams study also found that project employment during the peak of the construction phase is anticipated to exceed 650 jobs across Louisiana and Mississippi.
Southern Cross Transmission will hire locally whenever possible. In October, vendor recruitment fairs were held in Mississippi to identify local vendors and contractors
interested in participating. Vendors who were unable to attend a recruitment fair may submit their information via southerncrosstransmission.com.
An executive summary of the Moss Adams study is posted on the Southern Cross Transmission website at southerncrosstransmission.com.
For more information, visit www.patterndev.com.