Related Events

 

 

Date TBD The Vermont Public Service Board's informational session and public hearing on the proposed sale of Vermont Yankee to NorthStar Group Services at Vernon Elementary School has been postponed due to the snowstorm.

 

Vermont Yankee Closure Economic Impact Report

 

This page gives an overview of the UMass Donahue Institute (UMDI) 2014 report about the economic impact of the Vermont Yankee power plant closure. To view the full report, click here

 

Overview

Regional Context

Vermont Yankee Employees

Total Economic Impacts

 

Overview

The Vermont Yankee Nuclear Power Station has been an integral component of the tri-county region for over 40 years. The closure of the plant, which began in late 2014, is expected to have a significant economic impact on the region, shown below. 

Source: UMDI Report, December 2014

 

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Regional Context

Recent trends in jobs, income, unemployment, and population show that the tri-county region is not keeping pace with its neighboring and host states. The loss of Vermont Yankee jobs is expected to exacerbate these trends as former employees, and their spending power, move away and payroll is decreased.

 

The following figures and tables compare the tri-county region to statewide and national trends in employment, population, income, and labor force statistics.

 

Jobs Growth Index (2003=1.00), Tri-county Region Compared to States U.S.

 

Source:Bureau of Labor Statistics, Quarterly Census of Employment and Wages 

 

Per Capita Income Relative to U.S. for Tri-county Region and States, 1990-2012

 

 Source: Bureau of Economic Analysis  

 

 

Population Growth Index (1990=1.00), Tri-County Region Compared to States and U.S.

 

Source: U.S. Census Bureau

 

Unemployment rate, 2000-2013, Tri-county Region Compared to States and U.S. 

 

Source: Bureau of Labor Statistics

 

 

Tri-County Labor Force Growth, 1990-2013 (Labor Force, in thousands)

 

Source: Bureau of Labor Statistics

 

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Vermont Yankee Employees

In 2014, the Vermont Yankee Power Plant employed 550 people and had a payroll of $82 million. Over the next 6 to 7 years, the number of employees is expected to drop to as low as 24  during the period of dry fuel management.

 

Declining Employment over Phases of VY Decommissioning   

 

Source: Entergy, September 2014

 

Vermont Yankee employees live and spend a large part of their earnings where they reside. Of the 550 people employed in 2014, 481 lived in the tri-county region and about one-third lived in Cheshire County.

 

Place of Residence for Vermont Yankee Employees


Source: Vermont Yankee (2014)

 

The estimated average wage for Vermont Yankee employees in 2014 was $105,000, roughly 2.5 times greater than the average wage for the tri-county region, which was $40,000 in 2013.

 

Average Wage Per Employee, Vermont Yankee Compared to Region, States, and U.S.

 

Source:Vermont Yankee (2011); Bureau of Labor Statistics QCEW (2013)  

 

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Total Economic Impacts

In addition to Vermont Yankee employees (direct impacts), there are indirect and induced economic impacts of the Vermont Yankee closure.

 

The UMDI study used a customized IMPLAN input-output model to estimate the direct, indirect, and induced impacts (i.e. total impacts) of the Vermont Yankee closure and decommissioning in terms of employment, labor income, business sales (output), value added (i.e. total business sales minus the cost to purchase intermediate products), and state revenue. 

 

As the table below shows, the overall total economic activity in the tri-county region associated with the Vermont Yankee Power Plant in 2014 is estimated to be almost $500 million. Approximately 20% of this total represents annual losses in the local (i.e. tri-county) economy. These figures are expected to decline progressively as the plant moves through successive phases of decommissioning.

 

Source: Results are from simulations run in IMPLAN.

Notes: All economic activity levels shown represent the annual contributions to the economy; they are not multi-year cumulative contributions.

 

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