Economic Stimulus

The Maine Power Reliability Program is bringing revenue and employment to Maine and its communities, from direct contributions like salaries and property taxes to indirect infusions like increasing sales at local businesses.

Pre-Construction Projection

In an effort to estimate the MPRP's potential contributions to the local economy, the Maine Center for Business & Economic Research at the University of Southern Maine conducted a study in 2009. The study estimated that the project will annually contribute:

• $72 million to Maine's Gross Domestic Product during construction, or $305 million total
  
• $60 million in salaries and wages during construction, or $246 million total
  
• $25 million in property taxes after project completion with $23 million net gain through the ISO-NE cost socialization
• $87.5 million in the production and purchase of goods and services, or $350 million total
  

Additionally the study estimated that the project will save CMP and its ratepayers money by reducing losses and switching some local costs to regional costs. Over the next fifteen years, CMP and its ratepayers are expected to save an annual average of $7 million in reduced losses and $9 million in reallocated costs, or $240 million in total.

Updated Projection

With the project one year into construction, Burns & McDonnell created a follow-up economic report based on actual spending to date and projected spending for the remainder of the project. They found that the project will contribute:

• $436 million to Maine's Gross Domestic Product
• $303 million in wages and salaries
• $20 million in sales and income tax to Maine's tax base (both state and local), not including the $25 million in annual property taxes after construction

Kennebec County, Waldo County and Androscoggin County will see the most economic impact from the project, as the majority of construction is in these counties.

Kennebec County

• $111 million to the county's GDP
• $100 million in wages and salaries
  

Waldo County

• $54 million to the county's GDP
• $39 million in wages and salaries
  

Androscoggin County

• $53 million to Androscoggin County's GDP

• $45 million in wages and salariesThese investments create a ripple effect throughout Maine's economy.

As construction climbs steadily toward peak activity, more local businesses are seeing an increase in sales to our crews, or to the project directly. For many of these hometown shops, it was just the boost they needed in these tough economic times.

Read their stories on the Supporting Local Business page.

See how the MPRP is putting this money to work by Putting Maine to Work.