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Contract No. DE-AC36-08GO28308

Transmission Line Jobs and 

Economic Development Impact 

(JEDI) Model User Reference 

Guide

Marshall Goldberg

MRG and Associates

David Keyser

National Renewable Energy Laboratory

Technical Report

NREL/TP-6A20-60250

October 2013
NREL is a national laboratory of the U.S. Department of Energy

Office of Energy Efficiency & Renewable Energy

Operated by the Alliance for Sustainable Energy, LLC

This report is available at no cost from the National Renewable Energy

Laboratory (NREL) at www.nrel.gov/publications.

Contract No. DE-AC36-08GO28308

National Renewable Energy Laboratory

15013 Denver West Parkway

Golden, CO 80401

303-275-3000 • www.nrel.gov

Transmission Line Jobs and 

Economic Development Impact 

(JEDI) Model User Reference 

Guide

Marshall Goldberg

MRG and Associates

David Keyser

National Renewable Energy Laboratory

Prepared under Task No. DRS8.4010

Technical Report

NREL/TP-6A20-60250

October 2013
NOTICE

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or favoring by the United States government or any agency thereof. The views and opinions of authors 

expressed herein do not necessarily state or reflect those of the United States government or any agency thereof.

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Cover Photos: (left to right) photo by Pat Corkery, NREL 16416, photo from SunEdison, NREL 17423, photo by Pat Corkery, NREL 

16560, photo by Dennis Schroeder, NREL 17613, photo by Dean Armstrong, NREL 17436, photo by Pat Corkery, NREL 17721.

Printed on paper containing at least 50% wastepaper, including 10% post consumer waste.
iii

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Summary

The Jobs and Economic Development Impact (JEDI) models, developed through the National 

Renewable Energy Laboratory (NREL), are freely available, user-friendly tools that estimate the 

potential economic impacts of constructing and operating power generation projects for a range 

of conventional and renewable energy technologies. The Transmission Line JEDI model can be 

used to examine questions about the economic impacts of transmission lines in a given state, 

region, or local community. This Transmission Line JEDI User Reference Guide was developed 

to provide basic instruction on operating the model and understanding the results. This guide also 

provides information on the model’s underlying methodology, as well as the parameters and 

references used to develop the cost data contained in the model. 

Based on inputs from the user, JEDI estimates total economic activity—job creation, earnings,

and output—for a given transmission line project. This includes the onsite, supply chain, and 

induced economic impacts associated with construction and maintenance. JEDI uses project cost 

and local1 content data gathered from actual transmission line projects, literature review, and 

input from industry professionals. Economic impacts are estimated using economic multipliers 

derived from IMPLAN software.

 1 “Local” refers to the region of analysis. This is discussed in greater depth in sections 5 and 6.3. 
iv

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List of Acronyms and Abbreviations

AC Alternating Current

ACSR Aluminum Conductor Steel Reinforced (cable)

BLS Bureau of Labor Statistics

CREZ Competitive Renewable Energy Zone

Ft Feet

FTE Full-Time Equivalent

HVDC High Voltage Direct Current

IMPLAN Impact Analysis for Planning

JEDI Jobs and Economic Development Impact Model

Kcmil Thousand Circular Mils

kV kilovolts

MW Megawatt

NESC National Electrical Safety Code

NREL National Renewable Energy Laboratory

O&M Operations and Maintenance

ROW Right-of-way

SOC Standard Occupational Classifications

WREZ Western Renewable Energy Zones

$MM Millions of Dollars
v

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Table of Contents

Summary..................................................................................................................................................... iii

List of Acronyms and Abbreviations ....................................................................................................... iv

List of Figures ............................................................................................................................................ vi

List of Tables .............................................................................................................................................. vi

1 Introduction........................................................................................................................................... 1

2 Model Overview .................................................................................................................................... 2

2.1 Types of Impacts........................................................................................................................... 2

2.2 Metrics: Jobs, Earnings, and Gross Economic Output.................................................................. 2

2.3 Impact Phases: Construction and Operation ................................................................................. 3

3 Entering Data and Running the Model ............................................................................................... 4

3.1 Getting Started............................................................................................................................... 4

3.2 Entering Data: Simple and Advanced Options.............................................................................. 5

3.3 Viewing and Saving Results ......................................................................................................... 6

3.4 Accessing and Viewing JEDI Work Areas ................................................................................... 6

4 Understanding the Results.................................................................................................................. 7

4.1 Caveats.......................................................................................................................................... 9

5 Customizing the Geographic Area of Analysis .............................................................................. 10

6 Understanding JEDI Data and Cost Categories .............................................................................. 12

6.1 Developing Detailed Project Expenditures ................................................................................. 14

6.2 Adjusting Project Costs for Terrain and Population Density ..................................................... 15

6.3 Estimating Local Expenditure Share........................................................................................... 16

6.4 Setting Labor and Wage Rates.................................................................................................... 17

7 Model Review and Testing................................................................................................................. 19

Resources.................................................................................................................................................. 20
vi 

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at www.nrel.gov/publications.

List of Figures

Figure 1. JEDI model Start page................................................................................................................... 4

Figure 2. JEDI model Project Data page....................................................................................................... 5

Figure 3. Project data summary and local economic impacts summary results from transmission line 

JEDI run ................................................................................................................................... 8

List of Tables

Table 1. Transmission Line Standard Configuration Assumptions............................................................ 13

Table 2. Terrain and Population Density Cost Adjustments....................................................................... 16

Table 3. Summary of JEDI Construction and O&M Expenditure Local Share Values.............................. 17
vii

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at www.nrel.gov/publications.

Acknowledgements

The authors would like to thank the U.S. Department of Energy Office of Electricity for 

supporting this work. Thanks also to Francisco Flores-Espino of NREL and Andy Rawlins of 

Black and Veatch for comments and review of prior versions of this report. The authors would 

also like to thank Andy Rawlins for supporting the development of the Transmission Line JEDI 

model. 
1

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at www.nrel.gov/publications.

1 Introduction

The Transmission Line Jobs and Economic Development Impact (JEDI) model is designed to 

demonstrate the potential economic impacts associated with developing and maintaining

transmission lines in the United States. Economic impacts are categorized into project 

development and onsite labor impacts, equipment and supply chain impacts, and induced 

impacts. 

The model features a user-friendly format that can be easily modified to incorporate a wide range 

of project-specific information. Additionally, the model was designed to be transparent so that 

users can see how it generates impacts.

This document describes general use of the model, how to interpret output summaries, and 

technical assumptions and cost models contained in the model. In general, the model relies on 

historical cost data, estimates from transmission line projects in the United States, and 

transmission line engineering assumptions to develop default values. These data introduce 

uncertainty because there are many variables associated with developing transmission lines. 

Model data represent the best information available to NREL at the time of development. For 

additional questions regarding the JEDI models or model updates, please refer to the Jobs and 

Economic Development (JEDI) models home page at http://www.nrel.gov/analysis/jedi/.
2

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at www.nrel.gov/publications.

2 Model Overview

The Transmission Line JEDI model offers users the capability to analyze transmission line

projects in the United States. JEDI uses an input-output model to estimate jobs, earnings, and 

gross economic output that could be supported by the project. 

Input-output models were originally developed to trace supply linkages in the economy. For 

example, they show how purchases of transmission line equipment not only impact equipment 

manufacturers but also the metal industries and other businesses supplying inputs to those 

manufacturers. As of the time of this publication (2013), JEDI uses state level data from the 

IMPLAN input-output model.2

The impacts of expenditures for transmission lines depend upon the extent to which those 

expenditures are spent within the region of analysis and on the structure of the local economy. 

Consumers who purchase goods that are manufactured locally, for example, support more 

manufacturing jobs within the region of analysis than those who purchase imported goods. 

2.1 Types of Impacts

To determine the total effect of developing a transmission line, JEDI examines three separate 

impacts for each project scenario: project development and onsite labor impacts, equipment and 

supply chain impacts, and induced impacts. The sum of these three impacts is the total impact of 

the scenario. In order to provide intuitive results, these impacts are categorized as they relate to a 

project. . 

Project development and onsite labor impacts refer to the onsite or immediate effects created by 

project expenditures. In constructing a transmission line, it refers to the onsite jobs of the 

contractors and crews hired to install the towers and run the overhead lines. 

Equipment and supply chain impacts refer to the increase in economic activity that occurs when 

a contractor, vendor, or manufacturer receives payment for goods or services and in turn is able 

to pay others who support their business. For example, this impact includes the banker who 

finances the contractor who pays the foundation workers, and the steel mills and electrical 

manufacturers along the supply chain that provide necessary materials. The effects captured here 

also include the manufacturing of transmission line equipment, such as steel structures and poles, 

overhead wires, and circuits that are used in construction.

Induced impacts refer to the effects driven by spending of household earnings from project 

development and onsite labor impacts as well as supply chain impacts. Induced results are often 

associated with increased business at local restaurants, hotels, and retail establishments but also 

include activity at childcare providers, service providers, and any other entity affected by 

increased economic activity and spending occurring at the first two tiers.

2.2 Metrics: Jobs, Earnings, and Gross Economic Output

JEDI reports three metrics: jobs, earnings, and gross economic output. 

 2 More information about IMPLAN can be found at http://www.implan.com. 
3

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JEDI reports all job figures as full time equivalent (FTE). One FTE is the equivalent of one 

person working full time for one year (2,080 hours). One FTE could represent two people 

working half time for one year, or two people who work full time for six months. 

Earnings consist of wages or salaries and employer provided supplements. Retirement 

contributions and health care benefits are common supplements.

Gross output is a general measure of economic activity.3 It is the sum of all expenditures that are 

estimated to take place in an economy as a result of the specified project scenario. Output 

includes the portion of the project itself that was spent locally as well as all local expenditures 

for inputs, including business expenditures and commodities purchased by households. 

2.3 Impact Phases: Construction and Operation

JEDI produces results for two phases: construction and operation. Construction phase results are 

cumulative totals over the entire construction period, whereas operation phase results are annual 

over the operating life of the transmission line. JEDI analysis does not assume a set life span, nor 

does it consider potential impacts from line removal.

Construction phase results are not affected by the duration of the construction period. The results

for a one-year project will be the same as a five-year project, assuming all costs are consistent. If 

desired, annual averages can be obtained by dividing construction results by the number of years 

it takes to build the transmission line. For example, if JEDI produces an estimate of 100 FTE

construction jobs supported by a project that takes two years to build, the estimate can also be 

reported as an average of 50 jobs per year (100 / 2 = 50) during the two-year construction period. 

To estimate the local jobs and other economic impacts associated with transmission line worker 

earnings, the JEDI model utilizes personal consumption expenditure patterns. These average

spending patterns, derived from household commodity demand, provide the basis for reallocating 

worker earnings to industries that will likely supply the commodities that are purchased by 

consumers.

4 For example, for each dollar of earnings received by a worker, a portion is spent on 

housing, transportation, food, and other goods or services. The model allocates this spending to 

those industries that produce the goods or services and then reports the associated impacts.

JEDI contains default values representative of “typical” transmission line projects constructed in 

various terrains and population densities. These values allow users with limited knowledge of a 

specific project to estimate potential economic impacts from a project or aggregation of projects. 

These default values represent a reasonable expenditure pattern for constructing and maintaining 

a transmission line in the United States. Resource characteristics, varied terrain, location, 

financing arrangements, developer preferences, and numerous site-specific factors influence 

economic impacts. Similarly, the availability of local resources, including labor and materials, 

and the availability of locally manufactured components can have a significant effect on the costs 

and the economic impacts that accrue to the state or local region.

 3 Gross economic output is not the same as gross domestic product (GDP). GDP is a measure of the value of 

production. Gross output includes the value of production in addition to purchases of inputs. 

4 Personal consumption expenditure patterns are based on analysis of household commodity demand derived from 

IMPLAN state data files.
4

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3 Entering Data and Running the Model

JEDI contains numerous comments that provide explanations and instructions about what type of 

data to enter in specific cells or what certain line items or categories mean. When available, the 

comments can be viewed by pointing the cursor to the red triangle in the corner of select cells.

User modified data can be entered and saved within the JEDI model. These changes can be 

undone by clicking the “Restore Default Values” button. JEDI defaults are protected; project 

data can be changed, but default data cannot. 

3.1 Getting Started

The Transmission Line JEDI model is based in Microsoft Excel. To begin, open the 

Transmission Line JEDI Excel file. The JEDI model opens to the “Start” tab, which briefly 

explains what the model is used for and outlines the steps to complete an economic impact 

analysis (see Figure 1). Next steps:

• To learn more about the model version and history, go to the “About JEDI” tab. 

• To begin a JEDI analysis, click the “Start Economic Impact Analysis” button or go to the 

“Project Data” tab.

Figure 1. JEDI model Start page
5

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3.2 Entering Data: Simple and Advanced Options

The JEDI model employs two modeling options to accommodate a broad user base with varying 

levels of knowledge about transmission line projects. A “simple” or “advanced” input option 

allows a user to choose the number and detail of user inputs that are accessible (see Figure 2).

The simple option requires minimal inputs such as the year in which construction starts, the 

region of analysis, and the line type (chosen from a list of seven options). In addition, the simple 

input option allows the user to specify the transmission line length, terrain classification (chosen 

from a list of five), and population density (chosen from a list of three), which determines right 

of way access. The simple option utilizes default project cost data. (To use the simple input

option – utilize default values in analysis, user must choose “Simple” in cell B24 on the 

ProjectData page.)

The advanced option is available for users with more information or knowledge of a transmission 

line project. This option allows model users to override default values with their own 

information. Default data can still be used in advanced mode by clicking on the “restore default

values” button.

Figure 2. JEDI model Project Data page

Once project data is entered, the user can click on the “Go To Summary Results” button or 

choose the “SummaryResults” tab.
6

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3.3 Viewing and Saving Results

To print data and results, click:

• “Print Project Data Summary and Summary Results” to print the summary data and 

results contained on the summary page

• “Print Detailed Project Data” to print a detailed version of all cost and expenditure data 

used in the analysis. 

To export the data and results to a separate Excel file, click the “Export” button. 

To save the entire model (with the user-modified data) for future use or reference, choose “Save

As” from the Excel menu, rename the model, and choose a directory. Users with Excel 2007 or 

newer should save the file with a macro-enabled “.xlsm” extension, as the file uses macros. 

Changing the name ensures the original model (with model defaults) is kept intact for future 

analysis. 

Users always have the option to “copy” and “paste” to another spreadsheet or document.

3.4 Accessing and Viewing JEDI Work Areas 

To help ensure the JEDI model is as transparent as possible, default data, calculations, deflators, 

and four additional work areas are contained within their own worksheets. All of these work 

areas are locked and cannot be changed. If desired, they can be viewed (but not edited) by 

clicking on the worksheet and scrolling to the right. Viewing the worksheets will not affect the 

operation of the model. 

Multipliers and household expenditure patterns are also contained within their own worksheets. 

In order to adhere to licensing agreements that cover proprietary data, the multiplier and 

household expenditure worksheets are locked and cannot be viewed. Multiplier and household 

expenditure data can be changed with the “User Add-In Location” feature. Details about this 

feature and instructions are covered elsewhere in this report. 
7 

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4 Understanding the Results

JEDI results illuminate the magnitude of the economic impacts of transmission line projects. The 

model provides basic project information to help identify construction-related spending levels 

and ongoing O&M expenditures. The model also displays the portion of the spending assumed to

occur locally (determined by the “local share” values—default or user-modified—used in the 

model for each of the expenditures). Similarly, the model displays local spending on debt and 

equity payments, property taxes, right of way payments, and purchase and land lease payments, 

if applicable. 

The JEDI model analyzes and reports the local jobs, earnings and gross output that could be 

reasonably supported by the specified project for the construction phase and for the ongoing 

operations phase. For the construction phase, the impacts are broken out by project development 

and onsite labor impacts, including construction labor and construction related services, 

equipment and supply chain impacts, and induced impacts. Operation phase impacts are broken 

out as onsite, local revenue and supply chain, and induced. 

Figure 3 shows the job and economic impact summary for a 230 kV AC transmission line 

(simple model option) constructed in 2015. The results from this example show that 114 fulltime equivalent (FTE) jobs are supported generating $7.0 million in earnings and $12.9 million 

in total economic activity during project development and construction; these include a total of 

67 FTE jobs from project development (57 construction and 10 construction related services), 17 

from the equipment and supply chain, and 30 from induced impacts. Once the project is 

operational, the user finds that 1 full-time O&M job is created and sustained for the life of the 

transmission line, with fractions of an FTE job (rounded) through supply chain and induced 

impacts, for a total of 2 full-time jobs associated with line operations and maintenance.
8 

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at www.nrel.gov/publications.

 

Figure 3. Project data summary and local economic impacts summary results from transmission 

line JEDI run5

 

5 Due to continuous updates and improvements to the JEDI model, it may not be possible to exactly reproduce the 

results of this model run.
9

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at www.nrel.gov/publications.

4.1 Limitations and Caveats

The intent of the Transmission Line JEDI model is to construct a reasonable profile of 

expenditures (i.e., development services, materials and equipment costs, construction labor and 

maintenance costs) and demonstrate the magnitude of the gross economic impacts that could

result, assuming a project occurs during the stated period of analysis. Given the unique nature of 

transmission lines and the many site specific factors that can impact the cost, the analysis is not 

intended to provide a precise projection of expected impacts. Rather, the analysis should be 

viewed as an estimate of the overall magnitude of the impacts.

Because JEDI models do not estimate the impacts (jobs, earnings, and output) related to 

alternative spending or increases or decreases in consumer utility bills, JEDI results should be 

viewed as gross rather than net. JEDI does not incorporate potential far-reaching impacts, such as 

changes in utility rates, taxes, property values, or displaced investment. 

The JEDI model is a static model. As such, it relies on inter-industry relationships and household

consumption patterns for the year that the multipliers were generated. Prices, technology, 

productivity, taxes, and consumer behavior are assumed to remain constant. 

If users specify that certain activities will occur within the region of analysis, JEDI assumes that 

these activities are possible. JEDI also assumes that associated activities will also be “local.” For 

example, if a user specifies that steel towers will be manufactured locally and, within the inputoutput model, steel tower manufacturers purchase their raw material locally, JEDI results will 

reflect local manufacturing of the towers as well as locally procured raw materials. The model 

does not evaluate whether this is technically feasible. 

JEDI was not designed to provide cash flow projections or to be used for cash flow analysis. 

NREL is not responsible for how JEDI is used or how its results are interpreted. 
10

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at www.nrel.gov/publications.

5 Customizing the Geographic Area of Analysis

Early JEDI models provided for state-level impact analysis only, but current models also 

facilitate analysis at different geographic levels within the United States or internationally. JEDI 

also allows use of multipliers from sources other than IMPLAN, such as those available from the 

Bureau of Economic Analysis.

The JEDI models’ User Add-in Location feature allows users to derive or obtain data to 

complete analysis for a specific region of interest. The necessary inputs include direct, indirect, 

and induced multipliers for employment; earnings and output (per million dollars change in final 

demand); and personal consumption expenditure patterns (i.e., average consumer expenditures 

on goods and services—calculated as a percentage, entered in decimal format, totaling 100

percent combined) for the 14 aggregated industries used in the model: 

1. Agriculture 

2. Construction 

3. Electrical equipment 

4. Fabricated metals 

5. Finance, insurance, and real estate 

6. Government 

7. Machinery 

8. Mining 

9. Other manufacturing 

10. Other services 

11. Professional services 

12. Retail trade 

13. Transportation, communication, and public utilities 

14. Wholesale trade. 

To gather the necessary data using IMPLAN: 

1. Purchase the desired county or state-level data files. 

2. Using IMPLAN Version 3 software or newer, create a new model with the desired region 

(one county, group of counties, one state or group of states).

3. Construct the model through multipliers.

4. Aggregate the model. This step requires the user to create a new 14-industry aggregation 

scheme. The JEDI aggregation scheme template is available by request from NREL.7

 7Contact NREL at JEDISupport@nrel.gov. 
11

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5. Reconstruct the model.

6. Export household local commodity demand (personal consumption expenditures) and 

multipliers for employment, employee compensation, and output to spreadsheet files.

7. Format data contained in each of these files and cut and paste) into the appropriate

location (MyCounty for a single county or MyRegion for a group of counties or states) in 

the User Add-in Location worksheet. 

All input data noted above must be in the exact order and format found in the User Add-in 

Location worksheet in the JEDI model. Any variations may invalidate the analysis and results.

Once the user data are entered, go to the project description section of the ProjectData worksheet 

and identify the location of the transmission line as MyCounty or MyRegion. Proceed with 

entering the necessary descriptive data for the analysis. 

For non-IMPLAN users or those unfamiliar with input-output modeling, there are several options 

for gathering the necessary data to perform specific county or regional analysis.8 These include: 

1. Follow a similar process as that noted above to derive the aggregated and disaggregated 

multipliers and consumer expenditure data (aggregated) from another input-output 

modeling tool. 

2. Purchase the necessary data (aggregated and disaggregated multiplier and consumer 

commodity demand—see description above) from an input-output data provider. 

3. Obtain desired updates from the model developer or some other person or organization 

skilled in input-output modeling.

All input data noted above must be in the exact order and format found in the User Add-in 

Location worksheet in the JEDI model. Any variations may invalidate the analysis and results.

Default project data are designed to reflect state-level projects in the United States. Users can 

choose to use default data with customized multipliers, although if the project scenario differs 

from what might occur in a U.S. state, users are encouraged to use the model in advanced mode 

and customize the project scenario. This is especially important if the region of analysis is 

outside of the United States. 

 8 As a federally funded research and development center, NREL cannot recommend or endorse particular products 

or services.
12

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6 Understanding Transmission Line JEDI Data and 

Cost Categories

Analyzing the economic impacts of constructing and maintaining transmission lines requires a 

large amount of project- and location-specific data, such as capital costs, labor rates, local inputoutput multipliers, personal expenditure patterns, and price deflators.

Before initiating formal model development, NREL defined representative projects for seven 

different line types. This was critical since the number and type of line components (e.g., 

bays/circuits, substations, etc.) and expenditures are highly sensitive to project parameters. Table 

1 provides a summary of these assumptions. 

Once the standard configurations were developed, the representative project cost estimates for 

each project type were derived based on the following process:

• Collect high level data for installed costs of substations and transmission lines (and 

detailed costs as available).

• Derive the anticipated total installed cost for each standard configuration.

• Develop estimates of “soft” (non Procurement & Construction) costs attributable to each 

configuration.

Building upon these basic parameters the model provides default values for all inputs necessary 

to perform an analysis. Black and Veatch developed project costs, including development and 

preconstruction activities, line construction, right-of-way costs, and O&M costs from actual 

projects, an engineering model, and engineering expertise. Black and Veatch surveyed 

expenditures for over 20 actual projects built between 2011 and 2013, including detailed 

expenditures for Competitive Renewable Energy Zone (CREZ) projects in Texas. Other projects 

surveyed were across the United States and southern Canada. Additional data came from the 

Western Renewable Energy Zones (WREZ) Transmission Model. 9 Black and Veatch engineers 

further refined cost data based on project experience and expertise. Inflation was estimated with 

the Bureau of Labor Statistics consumer price index for all urban consumers. 

There can be considerable variation in reported transmission line costs. The default figures in 

JEDI represent a “middle of the road” scenario when compared with all projects surveyed. Table 

1 lists Black and Veatch configuration assumptions used to develop default costs. Conductor 

size, in particular, can cause costs to deviate from JEDI defaults. Sizes listed in table 1 are 

typical for each line type, but can be changed due to utility standards, line length, and capacity 

requirements.

 9 Information on the WREZ Transmission Model is available at 

http://www.westgov.org/index.php?option=com_content&view=article&catid=102%3Ainitiatives&id=220%3Awre

z-transmission-model-page&Itemid=81. 
13

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Table 1. Transmission Line Standard Configuration Assumptions

AC AC AC AC AC AC HVDC Bipole

Category Unit 69 kV AC 115 kV AC 230 kV AC 345 kV AC 500 kV AC 765 kV AC 500 kV HVDC

Structure Configuration Steel Pole Steel Pole Steel Pole Steel Pole Lattice Tower Lattice Tower Lattice Tower

Capacity MW 75 150 400 900 1500 3000 3000

Conductor Size per Phase kcmil 477 ACSR 795 ACSR 1272 ACSR (2) 795 ACSR (3) 1590 ACSR (6) 954 ACSR (3) 1780 ACSR

Average Span ft 800 900 1000 1100 1200 1300 1300

ROW Width ft 100 120 150 160 180 200 200

ROW Area acres/mile 12.1 14.5 18.2 19.4 21.8 24.2 24.2

Development and Preconstruction 

Duration years 3.0 3.5 4.0 4.5 5.0 5.0 5.0

Construction Duration miles/month 4.0 4.0 4.0 6.0 8.0 8.0 8.0

NESC Loading District Heavy Heavy Heavy Heavy Heavy Heavy Heavy

Percent Rural percent 100% 100% 100% 100% 100% 100% 100%

Converter Stations # 1 1 1 1 1 1 2
14

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6.1 Developing Detailed Project Expenditures

Developing a JEDI model requires the disaggregation of total project costs or expenditures into 

individual line items that can be aligned with sectors in the IMPLAN model. This allows 

individual expenditures to be evaluated for their impact within their respective sectors and then 

summed to estimate the total impact. Functionally, a transmission line project must be broken 

down into its constituent industries including, for example, steel fabrication, circuit and wire

manufacturing, and commercial construction. Labor and services expenditures are also isolated 

from capital or equipment expenditures wherever possible. 

With the seven representative project types and high-level costs defined, NREL developed a 

detailed list of line item expenditures at a resolution high enough to allow a given expenditure to

be assigned to its respective IMPLAN sector, but at low enough that the input data were known 

or could be estimated. Unfortunately, the level of data and cost resolution required by the JEDI 

model goes beyond the data that are typically available in the public sphere. To accomplish this 

breakdown, NREL worked with Black & Veatch to develop the detailed project costs contained 

in the ProjectData worksheet. Project costs, including development and preconstruction 

activities, line construction, right-of-way costs and O&M, were derived using known percentages 

of total cost for each of the items. These percentages were derived from the transmission line 

engineering assumptions contained in the WREZ Transmission Model and data from industry 

professionals. 

Project expenditures include:10

• Development and preconstruction activities

o Land acquisition services and payments

o Engineering, surveying and geotechnical services, and environmental and 

permitting services

• Construction activities

o Materials and equipment costs – basic construction materials, steel structures and 

poles, overhead wires, converter stations, substations, etc.

o Labor costs – civil and heavy construction 

• Infrastructure costs

o Materials and equipment costs – bays/circuits, substations, substation upgrades, 

transformers, converter stations

o Labor costs – positions, new substations and upgrades, transformers, converter 

stations

• Services/other costs

 10 Development and preconstruction costs cover the cost of the ROW acquisition personnel. For public lands, the 

owner typically pays an annual license fee which JEDI includes in the annual O&M costs section. For private lands, 

JEDI assumes a one-time, up-front payment to the landowner
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o Transmission line services – line management, legal, insurance, public relations, 

engineering, construction management, and environmental monitoring, etc.

o Infrastructure services – substation site management, legal, insurance, public 

relations, engineering, construction management and environmental monitoring, 

etc.

o Other costs – environmental mitigation, system operator and regulator fees, 

business services, substation construction insurance 

• Annual operating and maintenance costs 

o Transmission line and right of way (ROW) – operational labor, maintenance 

materials, insurance replacement parts and equipment 

o Substation/converter – labor, insurance replacement parts and equipment

• Other parameters (debt and equity, taxes, and payroll). 

Projects that deviate significantly from this set of expenditure types, including projects with 

voltages not included in the seven representative types, may not lend themselves to modeling in 

the Transmission Line JEDI model without revisions to inputs or the underlying model structure.

6.2 Adjusting Project Costs for Terrain and Population Density 

There are many factors that can consistently increase or decrease project costs, such as terrain, 

access to construction sites, ROW ownership, and economies of scale. Unlike project-specific 

costs, these are broadly applicable to projects across the country. Black & Veatch developed cost 

adjustments based on project experience, market data, and industry cost models. 

Cost adjustments, shown in Table 2, are ratios that represent how specific factors influence 

construction and procurement costs or right-of-way costs. A ratio of 1.00 represents no change 

from average costs. Ratios greater than 1.00 reflect higher costs, and ratios less than 1.00 reflect 

lower costs.
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National Renewable Energy Laboratory (NREL) 

at www.nrel.gov/publications.

Table 2. Terrain and Population Density Cost Adjustments

Procurement & Construction

Cost Multiplier

Private Right-of-Way

Cost Multiplier

Terrain Class

Flat w/reasonable access 1.00 1.00

Farmland 1.00 2.00

Desert/remote 1.05 0.50

Rolling 1.10 1.00

Mountainous 1.30 1.00

Population Density Class

Rural 1.00 1.00

Near town 1.15 2.00

In town 1.30 5.00

Black & Veatch estimates of costs per mile assume that the transmission line is at least 20 miles 

in length. Shorter lines have progressively higher construction and procurement costs. The line 

length multiplier is 1.0 (no change) for lines greater than or equal to 20 miles. For lines shorter 

than 20 miles, the multiplier is calculated as 2 − �

line length

20 �. A 10-mile line, for example, 

would have a multiplier of 1.5. A five-mile line would have a multiplier of 1.75. 

6.3 Estimating Local Expenditure Share

The local share is the portion of goods produced within the region of analysis. For labor, the 

local share is the portion of workers who reside within the region of analysis. Leakages, or 

expenditures outside of the region of analysis, are not included in the impacts estimated by JEDI. 

NREL and Black & Veatch developed local share values for each expenditure11. A summary of 

the state-level construction period local share estimates is included in Table 3. Total construction 

period local share is typically very low, estimated to be approximately 20 percent of total 

expenditures. The largest share of local expenditures will be for labor (61 percent local share) 

and transmission line services (60 percent). Basic construction materials (e.g., gravel, concrete, 

asphalt), are expected to be purchased entirely from the local area because they are typically 

available everywhere. In general, expenditures for operations and maintenance activities are 

expected to be more dependent on local sources of goods and services. Overall, at least 47% of 

total annual expenditures during the operations period are estimated to go to local shares.

 11 As with costs, Black and Veatch developed default local shares based on a combination of real projects, 

experience, and engineering expertise. 
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Table 3. Summary of JEDI Construction and O&M Expenditure Local Share Values

Local Share

Transmission Line Costs

Development and Preconstruction Activities 24%

Construction Activities

Materials and Equipment 7%

Labor 61%

Infrastructure Costs

Materials and Equipment 2%

Labor 19%

Services/Other Costs

Transmission Line Servicesa 60%

Infrastructure Services 25%

Other Costs 25%

Annual Operating and Maintenance Costs

Transmission Line and ROW

Labor 50%

Maintenance Materials 50%

Parts, Equipment, Insurance 0%

Substation/Converter Station

Labor 50%

Parts, Equipment, Insurance 0%

a. Transmission line services include: site management, legal, insurance and public relations, as well as 

engineering, construction management and environmental monitoring.

These broad estimates are based on subjective estimates of the ability of industries and their 

distribution networks to support future transmission line construction and maintenance activity. 

For example, because concrete and gravel are generally accessible locally, and costly to 

transport, there is incentive to acquire these goods locally. 

The default local content estimates may or may not reflect actual expenditure patterns. In 

practice, there is wide variability between projects. Moreover, with many states and local 

jurisdictions considering net economic impact tests in their project approval processes, project 

developers may be requested or required to procure more goods and services locally. When

better estimates of local or regional content are available, users should use those estimates in 

their analysis.

6.4 Setting Labor and Wage Rates

State average hourly wage rates and employer overhead (percent of hourly wage) for all labor 

during the construction and operating periods are contained in the ProjectData worksheet in the 
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National Renewable Energy Laboratory (NREL) 

at www.nrel.gov/publications.

model under Payroll Parameters. Wage rates are based on the following Standard Occupational 

Classifications (SOC) derived from the U.S. Department of Labor, Bureau of Labor Statistics12: 

• Electrical Power-Line Installers and Repairers (SOC code 49-9051) 

• Electronics Repairers, Powerhouse, Substation, and Relay (SOC code 49-2095)

• Operating Engineers and Other Construction Equipment Operators (SOC code 47-2073).

Users may override the labor cost defaults in the advanced model option and input their own 

labor costs.

 12 See Hourly Mean Wage Data, Bureau of Labor Statistics, http://data.bls.gov/oes/.
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National Renewable Energy Laboratory (NREL) 

at www.nrel.gov/publications.

7 Model Review and Testing

The Transmission Line JEDI Model has undergone both peer review and internal testing. Base 

default data (line items, costs, and local content) were reviewed both internally by NREL and 

Black & Veatch and externally by members of the academic community and transmission line

industry. In each instance, feedback on both the inputs and preliminary results was solicited and 

incorporated into the model.
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National Renewable Energy Laboratory (NREL) 

at www.nrel.gov/publications.

Resources

Bureau of Labor Statistics, U.S. Department of Labor. (2012). “Occupational Employment and 

Wage Estimates.” Accessed Mary 2013: http://www.bls.gov/oes/current/oessrcst.htm. 

Western Renewable Energy Zones (WREZ) Transmission Model. Western Governors’ 

Association. Accessed June 2013: http://www.westgov.org.