Coal-fired power plants deliver on only a fraction of promised jobs

Press release from the issuing company

Thursday, March 31st, 2011

Chattanooga, Tenn. - The Ochs Center for Metropolitan Studies released a new report today showing for the first time the number of jobs created by large, new coal-fired power plants falls far below the amount promised before the plants were approved.

The report found that job creation in the host counties for five of the six plants analyzed fell woefully short of initial job estimates. Overall, of the six plants studied in five counties around the country, only 56% of every 1,000 jobs promised actually materialized. In four of the five counties, coal plant construction delivered only 27% of the jobs projected.

"Our study demonstrated that new coal-powered plants simply don't deliver on their promise of new jobs for host communities, in fact, they don't even come close," said David Eichenthal, President and CEO of The Ochs Center. "The fact that only one of the large plants built in the past five years appears to have provided the number of jobs it promised shows that communities being asked to take on the burden of hosting new coal plants need to take promises of new jobs with more than a grain of salt." The report, which reviewed figures publicly promised by companies constructing coal plants and compared them to actual construction job creation in the county, is the first effort to measure one of the most important figures that communities rely on when deciding whether to approve new plants.

The Ochs Center analyzed the six largest new plants that became operational between 2005 and 2009. Researchers examined public data for each plant including employment data and labor retention rates for the periods before, during and after construction. Local job retention rates in each of the six counties actually declined during construction of the coal plants, suggesting that many new jobs went to workers coming from outside of the host county.

Pottawattamie County, Iowa – home of the Walter Scott 4 plant -- was the only host county that experienced an increase in construction employment that matched the predicted levels. The other plants studied, which failed to meet their predicted job creation levels, were: Oak Grove 1 and Oak Grove 2 in Robertson County, Texas, Nebraska City 2 in Otoe County, Nebraska, Cross 3 and Cross 4 in Berkeley County, South Carolina, Weston 4 in Marathon County, Wisconsin and Sandow 5 in Milam County, Texas.

There are currently 37 proposed new coal-fired power plants that are under development. Coal plant proponents frequently suggest that counties where they are built will reap an economic windfall through construction and permanent jobs. The Ochs Center report shows those promises of new construction jobs are frequently overstated.