Economic Study Outlines Benefits Of Holcomb Expansion Project: Energy Compromise Will Generate $40 Million In Annual Tax Revenue

MANHATTAN, Kan. (Oct. 25, 2010) -A reportconducted by economists from Kansas State University and commissioned by the American Coalition for Clean Coal Electricity (ACCCE) shows annual economic activity of nearly $350 million, with more than $40 million in state tax revenue upon completion of Sunflower Electric Power Corporation's new 895 megawatt coal-fueled unit to be built in Finney County, Kansas.

"The Holcomb Expansion Project will enable Sunflower to continue to provide low-cost electricity to Kansas families and businesses for decades to come, while generating hundreds of millions in tax revenue over the life of the plant," said Steve Miller, ACCCE president and chief executive officer.

In 2009, Gov. Mark Parkinson signed into law a comprehensive energy policy to strengthen the state's economy while protecting its environment. The legislation promotes renewable energy development, establishes regulatory certainty so businesses can invest with confidence and supports the development of safe, responsible power generation facilities. Key to this agreement is the compromise that allowed Sunflower to resume the permitting process to expand Holcomb station in southwest Kansas.

Construction of the Holcomb expansion project will generate nearly $2 billion in total economic activity and support an estimated 5,900 job-years throughout the state, paying $250 million in labor income. Peak construction employment will reach nearly 1,900 jobs, and upon completion in 2016, the unit will generate 88 permanent jobs with a yearly payroll of more than $6 million.

"We appreciate the work done on this study that substantiates what we have always said: the Holcomb expansion project will have a tremendous impact on the Kansas economy-impact that will be felt not only in southwest Kansas but statewide," said Earl Watkins, Sunflower president and CEO. "At a time of economic downturn, this project will provide not only affordable energy, but jobs and tax revenue as well, all of which Kansans desperately need."

The Holcomb expansion project will be among the cleanest power plants of its kind, using the best available technology to reduce the emission of sulfur dioxide, nitrogen oxides and particulate matter. In addition, the use of supercritical steam temperatures and pressures will achieve energy efficiencies resulting in an estimated 8 percent reduction in carbon dioxide released per unit of energy produced, as compared to the current generation of pulverized coal power plants.

The study was commissioned by ACCCE and was conducted by Dr. John Leatherman, Ph.D. and Dr. Bill Golden, Ph.D., both of K-State's Department of Agricultural Economics. A non-partisan, not-for-profit organization, ACCCE commissioned the study to reinforce the economic benefits of previous analyses and projections by industry officials.

To see the full study,click here.