The large-scale closure of coal-fired and nuclear power plants in the US would have a significant impact on many local governments, according to a recent report from Moody’s Investor Service.
“Power plants are often the top taxpayer in a city, county or school district, paying a larger share of property taxes than the government’s other companies and individual residents,” said the reports authors, Andrew Pfluger and Julie Beglin.
“A power plant also affects a local government’s revenues through the economic activity it generates as a major employer,” the report continues. “These revenues include sales taxes and sometimes income taxes.”
Indeed, the local governments with most exposure to power plant closure depend on them for an average of 14% of their revenues, Moody’s analysis shows, with the Hendrick Hudson Central School District in Westchester, New York, topping the risk profile. It is dependent on the Indian Point nuclear power plant for 30.9% of its operating revenue.
The district most effected by a coal-fired power plant closure is the Town of Somerset, Massachusetts, which receives 20.1% of its revenues from the Brayton Point power plant.
Moody’s expects power plant retirements to peak in 2015 when 16 GW of capacity if forecast to go offline.
Written by Jonathan Rowland
Read the article online at: https://www.worldcoal.com/power/24072014/world-coal-power-plant-closures-to-hit-local-government-revenues-coal1123/