Wisconsin Public Service Commission Weighs Economic Benefits of Whitewater Solar Project

Strategic Insights -

The Public Service Commission of Wisconsin is deliberating on the proposed Whitewater Solar Project, a 180 MW photovoltaic electric generation facility in the cities of Whitewater and LaGrange, Walworth County, Wisconsin. The project's economic impact has been a subject of discussion, with concerns raised about the potential loss of local economic benefits if out-of-state contractors and workers are used. In a letter to the Commission, the Operating Engineers Local 139 and the Construction Business Group have requested that the applicant provide information on the actual mix of local versus out-of-state labor used to construct the project.

Key Takeaways:

  • The Operating Engineers Local 139 and the Construction Business Group represent over 30,000 tradesmen and women and 4,000 contractors, and have submitted comments to the Public Service Commission on the Whitewater Solar Project.
  • The Commission has historically considered state and local economic benefits of a project, including use of local workforce, when determining whether to approve a project.
  • A study by Forward Analytics found that using local workers generates between 73% and 158% more economic activity in the region than using out-of-state workers.
  • The study also found that a local workforce on a single 150 MW project earns a total of $21.7 million in wages and benefits, which generates $11.8 million in local economic activity.
  • If the local workforce is used for the 19 pending projects, more than $195 million could be generated in economic activity in the regions in which they are built.
  • Wisconsin will stand to lose between $83 and $120 million in economic activity if projects are built by out-of-state contractors using out-of-state workers.
  • The majority of the benefits to the local and state economies occur during construction itself, with materials for solar projects typically sourced from outside the region.
  • The applicant has stated that there is no detailed information available on the amount of local labor that will be used, and will depend on the EPC contractor selected and labor market availability.
  • The Commission has requested that the applicant provide information on local versus out-of-state labor used and efforts to use apprentices, on a quarterly basis, if the Commission approves the CPCN application.

Statistics:

  • A local workforce on a single 150 MW project earns a total of $21.7 million in wages and benefits.
  • Using local workers generates between 73% and 158% more economic activity in the region than using out-of-state workers.
  • More than $195 million could be generated in economic activity in the regions in which they are built, if the local workforce is used for the 19 pending projects.
  • Wisconsin will stand to lose between $83 and $120 million in economic activity if projects are built by out-of-state contractors using out-of-state workers.

Sources:

  • Public Service Commission of Wisconsin, Application Filing Requirements for Solar Electric Generation Projects, Order dated April 22, 2021, PSC Docket No. 5-AFR-700, PSC Ref. # 409893.
  • Forward Analytics, Capturing the Sun - The Economic Benefits of Using Local Workers on Wisconsin Solar Projects.
  • Public Service Commission of Wisconsin, Final Decision, dated April 18, 2019, in PSC Docket No. 9697-CE-100, PSC Ref. # 364425.
  • Operating Engineers Local 139 and Construction Business Group, Letter to the Public Service Commission, Docket No. 9828-CE-100.