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.

Contract No. DE-AC36-08GO28308

Jobs and Economic Development 

from New Transmission and 

Generation in Wyoming 

Eric Lantz and Suzanne Tegen

Technical Report

NREL/TP-6A20-50577

March 2011
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.

National Renewable Energy Laboratory

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Contract No. DE-AC36-08GO28308

Jobs and Economic Development 

from New Transmission and 

Generation in Wyoming 

Eric Lantz and Suzanne Tegen

Prepared under Task No. WTQ1.1000

Technical Report

NREL/TP-6A20-50577

March 2011
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iii

Acknowledgments

This report was commissioned by the Wyoming Infrastructure Authority (WIA) and jointly 

funded by the WIA and the U.S. Department of Energy (DOE) State Technical Assistance 

Program. A special thanks to Loyd Drain, executive director of the WIA, for supporting this 

work throughout. In addition, the authors would like to thank each of the local, state, and

industry representatives who were interviewed for this study or otherwise contributed to the 

development of the data that were used in this analysis. Thanks also to our colleagues who 

provided review and comments on earlier drafts of this report including Marshall Goldberg 

(MRG & Associates), David Taylor (University of Wyoming), Delphine Hou (the Brattle 

Group), David Kline (NREL), Gail Mosey (NREL), and Lynn Billman (NREL) as well as our 

NREL technical editor, Mary Lukkonen. Of course any remaining errors or omissions are the 

sole responsibility of the authors. 
iv

Executive Summary

Wyoming is a significant energy exporter, producing nearly 40% of the nation’s coal and 10% of 

the nation’s natural gas (EIA 2010a). However, opportunities to add new energy exports in the 

form of power generation are limited by insufficient transmission capacity. This report is 

intended to inform policymakers, local government officials, and Wyoming residents about the 

jobs and economic development activity that could occur should new investments in 

transmission, wind generation, and natural gas generation in Wyoming move forward. The 

analysis and results presented here are not a market projection or a forecast. Instead, the report 

uses a representative deployment scenario and economic modeling tools to estimate the jobs and 

economic activity likely associated with these projects if or when they are built.

New infrastructure projects considered in this analysis include four high voltage (HV) 

transmission lines designed for export of electricity out of Wyoming and a network of 

transmission lines that collect new power generation before export outside the state. The scenario 

considered here also includes 9 GW of new wind power and 1.8 GW of new natural gas power. 

This infrastructure is estimated to result in more than $25 billion invested during construction 

and approximately $380 million invested per year of operations (once all new capacity is in

service). The Wyoming share of these investments is estimated at approximately 19%–26% of 

the total construction investment and 31%–34% of the annual operations period investment. 

Given today’s economic structure, the investments flowing through the Wyoming economy are 

estimated to support:

• An average (as opposed to peak) of 4,000–5,900 Wyoming jobs per year for 10 years 

from construction-related activities; 8,000–14,000 Wyoming jobs annually during 

peak construction activity

• Wages and benefits to Wyoming workers averaging $200 million–$330 million per 

year during the 10-year construction period

• 2,300–2,600 Wyoming jobs during the operational period of the infrastructure 

lifecycle (at least 20 years, based on typical financing for new wind power projects) 

• Wages and benefits ranging from $100 million–$120 million per year during 

operations 

• Economic activity (output) of $1.2 billion in 2016 and $1.4 billion in 2019 (during 

peak construction) and $380 million per year during operations-only years

• Total Wyoming economic output on the order of $12 billion–$15 billion (construction 

plus 20 years of operations); this represents approximately 30% of the total potential 

economic activity associated with these projects.

Whether this economic potential is ultimately realized or not will depend on a variety of factors. 

Demand for Wyoming wind energy is critical, but the development of the new transmission 

infrastructure to export the Wyoming wind and natural gas generation across the West is also 

important. In addition, should the deployment scenario presented here become a reality, an array 

of factors will influence whether Wyoming will ultimately capture this level of economic 

activity. Parallel deployment of wind, transmission, and natural gas generation could limit 

Wyoming’s ability to contribute local goods and services to these projects at the level they have 
v 

been able to for individual projects in the past and reduce the Wyoming specific economic 

activity estimated here. Alternatively, the development of a Wyoming labor force that can 

support this type of infrastructure development, along with a modest amount of Wyoming 

manufacturing capacity to support these types of projects, could greatly increase the economic 

activity occurring in Wyoming from these projects. 
vi 

Table of Contents

List of Figures ........................................................................................................................................... vii

List of Tables ............................................................................................................................................ viii

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

Methodology................................................................................................................................................ 3

Background ................................................................................................................................3

Analysis-specific Methodology .................................................................................................4

The Infrastructure Deployment Scenario ................................................................................................. 7

Total Jobs and Economic Development Activity..................................................................................... 9

Summary of Total Results .......................................................................................................14

Wind Generation ....................................................................................................................................... 15

Modeling Inputs .......................................................................................................................18

Wind Generation Results .........................................................................................................23

Natural Gas Generation............................................................................................................................ 27

Modeling Inputs .......................................................................................................................27

Natural Gas Generation Results ...............................................................................................29

High Voltage Transmission...................................................................................................................... 33

Modeling Inputs .......................................................................................................................34

High Voltage Transmission Results .........................................................................................36

Summary & Conclusions.......................................................................................................................... 41

References................................................................................................................................................. 43

Appendix A: Supplementary Background on the Wyoming Infrastructure Authority....................... 46

Appendix B: Transmission Projects Currently Under Development in Wyoming ............................. 48

TransWest Express Transmission Project ................................................................................49

Wyoming-Colorado Intertie Project ........................................................................................52

Energy Gateway Projects .........................................................................................................55

Zephyr Project ..........................................................................................................................58

High Plains Express Transmission Project ..............................................................................60

Overland Transmission Project ................................................................................................62
vii 

List of Figures

Figure 1. Deployment scenario for new wind generation, natural gas generation, and 

transmission capacity in Wyoming ................................................................................................. 8

Figure 2. Base case employment in Wyoming from new power sector infrastructure development

....................................................................................................................................................... 11

Figure 3. Base case economic activity in Wyoming from new power sector infrastructure 

development .................................................................................................................................. 11

Figure 4. Base case employment by infrastructure type ............................................................... 12

Figure 5. Estimated range of employment based on variability in reliance on Wyoming goods, 

services, and labor ......................................................................................................................... 13

Figure 6. Total direct payments to Wyoming landowners and government ................................. 14

Figure 7. Wyoming wind speed at 80 m ....................................................................................... 15

Figure 8. U.S. wind speed map at 80 m ........................................................................................ 16

Figure 9. Wyoming wind resource potential ................................................................................. 17

Figure 10. Wyoming wind resource relative to California ........................................................... 18

Figure 11. Wyoming wind deployment by year ........................................................................... 19

Figure 12. Illustration of total and direct wind project area (temporary and permanent) ............. 20

Figure 13. Wyoming employment from 9,000 MW of new wind power (base case) .................. 24

Figure 14. Economic activity from 9,000 MW of new wind power (base case) .......................... 24

Figure 15. Estimated employment from wind installation in Wyoming—Three sensitivities ..... 25

Figure 16. Direct payments to Wyoming landowners and government from new wind generation

....................................................................................................................................................... 26

Figure 17. Wyoming employment from construction and operations of 1,800 MW of new natural 

gas generation ............................................................................................................................... 30

Figure 18. Wyoming economic output from construction and operations of 1,800 MW of new 

natural gas generation ................................................................................................................... 31

Figure 19. Estimated range of employment from 1,800 MW of new natural gas generation ...... 32

Figure 20. Conceptual representation of interstate transmission lines currently under 

development in Wyoming ............................................................................................................. 34

Figure 21. Wyoming employment annually from construction and operations of new HV 

transmission .................................................................................................................................. 38

Figure 22. Wyoming economic output annually from construction and operations of new HV 

transmission .................................................................................................................................. 38

Figure 23. Direct payments to Wyoming government and landowners ....................................... 39

Figure 24. Estimated range of employment from new HV transmission ..................................... 40

Figure B-1. Transmission Projects in Various Stages of Development in Wyoming .................. 48

Figure B-2. Conceptual routing of TWE 600 kV HVDC transmission line ................................. 50

Figure B-3. Conceptual route for the WCI project ....................................................................... 52

Figure B-4. Energy Gateway transmission network, conceptual design ...................................... 55

Figure B-5. Conceptual routing for the 500 kV HVDC Zephyr Project ....................................... 58

Figure B-6. Conceptual drawing of the proposed High Plains Express project ........................... 60

Figure B-7. Proposed Overland Transmission Project, conceptual design ................................... 62
viii

List of Tables

Table 1. Summary of Infrastructure and Associated Expenditures for Equipment Installed in 

Wyoming......................................................................................................................................... 8

Table 2. Construction Period Employment and Economic Activity ............................................... 9

Table 3. Operations Period Employment and Economic Activity Upon Full Deployment .......... 10

Table 4. High Level Wind Power Inputs ...................................................................................... 19

Table 5. Wind Power Project Cost Allocation and Percentage of Goods, Services, and Labor 

Procured in Wyoming ................................................................................................................... 22

Table 6. Construction and Operation Periods Economic Activity from 9,000 MW of New Wind 

Generation ..................................................................................................................................... 23

Table 7. High Level Natural Gas Generation Inputs .................................................................... 27

Table 8. Natural Gas Power Project Cost Allocation and Percentage of Goods, Services, and 

Labor Procured in Wyoming ........................................................................................................ 28

Table 9. Construction- and Operations-related Economic Activity from 1,800 MW of New 

Natural Gas Generation ................................................................................................................. 29

Table 10. High Level Transmission Cost Inputs .......................................................................... 35

Table 11. Transmission Line Cost Breakdowns Applied in JEDI Modeling ............................... 35

Table 12. Percentage of Transmission-related Expenditures Remaining in Wyoming ................ 36

Table 13. Construction- and Operations-related Economic Activity from New HV Transmission

....................................................................................................................................................... 37

Table 14. Wyoming Share of Project Spending (For Equipment Installed within Wyoming) ..... 41
1 

Introduction

Wyoming produces nearly 40% of the nation’s coal and approximately 10% of the nation’s 

natural gas (EIA 2010a). At the end of 2010 Wyoming was ranked 13th in installed wind power 

capacity (AWEA 2011), and in 2009 the state generated the equivalent of 6.7% of its electricity 

consumption from wind energy (Wiser and Bolinger 2010). Wyoming’s fossil resources remain 

abundant with coal reserves second only to Montana and dry natural gas reserves second only to 

Texas (EIA 2010a). The state also has excellent developable 

wind resources: over 500 GW of potential wind power with 

an estimated capacity factor of 30% or greater and over 

260 GW of wind with an estimated capacity factor of 40% or 

greater (WPA 2010).1

In addition, many states in the West and around the country 

have instituted renewable portfolio standards (RPS) 

requiring utilities to obtain a specific percentage of their 

electricity from renewable energy resources. Because wind 

energy is among the lowest cost renewable energy resources, 

demand for wind energy has increased as states have passed 

increasingly aggressive RPS goals. Moreover, the excellent 

wind resources of Wyoming suggest that exporting wind 

energy from Wyoming to load centers in the Southwest and 

West may be a viable solution for state RPS goals.

From an energy resource standpoint, 

Wyoming is well positioned to continue supplying large 

amounts of energy to other regions of the country. 

Historically, decades of infrastructure development—

including electricity transmission, rail lines, pipelines, and 

power generation—have provided the ability to distribute

Wyoming’s abundant energy resources to other parts of the 

country and provide economic development and revenue to 

Wyoming residents and communities. However, Wyoming’s 

existing infrastructure is nearing capacity, and without new 

infrastructure, further development and export of 

Wyoming’s energy resources could be compromised (Black 

and Veatch 2009; State of Wyoming 2004; WGA 2006). 

While new infrastructure investments are important for all 

types of Wyoming energy resources, they are especially 

critical for wind energy. Unlike coal or natural gas, which 

can be stored, exported as a raw material over rail lines and 

pipelines, or moved as electrons over long-distance 

transmission lines, the only option for wind energy today is to be transported over transmission 

 

1 These data apply standard industry exclusions for slope, protected land, wetlands, and other areas unlikely to be 

developed; they do not include other broad-based state specific exclusions (e.g., sage grouse core areas). Typical 

average capacity factors in the U.S. fleet today are 30%–35% (Wiser and Bolinger 2010). Capacity estimates are 

based on an 80 m hub height.

Basic Wyoming Economic & 

Demographic Statistics

Wyoming’s population is 

estimated at approximately 

544,000 (U.S. Census Bureau 

2010). As of June 2010, the 

Wyoming labor force was 

estimated to be 292,000 and 

unemployment was estimated at 

6.8% or approximately 20,000 

workers. Wyoming’s construction 

workforce was estimated at 

approximately 20,000 workers in 

June of 2010—down 16% from 

June 2009. Approximately 30% 

of the state’s total labor force 

and 20% of the state’s 

construction labor force are 

located in the metropolitan areas 

of Casper and Cheyenne (BLS 

2011). 

Wyoming’s 2009 gross domestic 

product (GDP) was estimated at 

approximately $32 billion and 

while growth overall between 

2008 and 2009 was up 5.4%, 

construction sector GDP grew by 

0.6% (BEA 2010).
2 

lines. And those transmission lines must extend all the way to the high value wind resource 

areas, which are typically in remote areas away from load centers (WGA 2009). New 

transmission lines could also support continued or expanded exports of Wyoming natural gas 

generation or advanced coal technologies.

Despite the need for new infrastructure, these projects are sometimes controversial. New 

transmission, rail, and pipelines all require long-distance right-of-ways or easements and affect 

many landowners across the state. In addition, opinions vary regarding the need or desire for 

Wyoming to continue to develop both conventional and renewable energy resources that serve 

out-of-state demand. This report is intended to inform policymakers, local government officials, 

and Wyoming residents about the jobs and economic development activity that could occur 

should investments in new transmission, wind generation, and natural gas generation in 

Wyoming move forward. 
3 

Methodology 

Background

Economic development activity is typically estimated using input-output (I/O) models. I/O 

models apply historical relationships between demand (i.e., specific expenditures within a given 

sector) and the resulting economic activity to estimate how new expenditures will affect 

economic development metrics including jobs, earnings (wages and employer paid benefits), and 

output, a general measure of economic activity.2 Many I/O models are static—they measure 

inter-industry relationships for a given time period—and linear—they assume that any change in 

demand, regardless of magnitude, has the same proportional result.3

This analysis relies on the suite of NREL I/O models known as the Jobs and Economic 

Development Impacts (JEDI) models: JEDI Wind, JEDI Natural Gas, and JEDI Transmission 

models were used in this analysis.

However, the inter-industry 

relationships utilized in I/O modeling tend to change gradually over a long period of time, and 

I/O modeling is a widely used and robust methodology for measuring economic development 

activity. 

4 Economic activity in I/O models is typically assessed in three 

categories. NREL’s JEDI models classify the first category of results—on-site labor and 

professional services results—as dollars spent on labor from companies engaged in development 

and on-site construction and operation of power generation and transmission. These results

include labor only—no materials.

5

The second category of JEDI results—local revenues, equipment and supply chain results—

occurs in supporting industries. These results are driven by the increase in demand for goods and 

services from direct on-site project spending. Businesses and companies included in the second 

tier of economic activity include construction material and component suppliers, analysts and 

attorneys who assess project feasibility and negotiate contract agreements, banks financing the 

projects, all equipment manufacturers (e.g., blade manufacturers), and manufacturers of 

replacement and repair parts. 

Companies or businesses that fall into this category of results 

include project developers, environmental and permitting consultants, road builders, concretepouring companies, construction companies, tower erection crews, crane operators, and 

operations and maintenance (O&M) personnel. 

Induced results are driven by reinvestment and spending of earnings by direct and indirect 

beneficiaries. Induced results are often associated with increased business at local restaurants, 

 

2 Output is defined more broadly than other metrics of economic activity including value added or GDP; output is 

the sum value of all goods and services at all stages of production (i.e., as a raw material and as a finished product).

Value added refers only to the market value of the final product.

3 Some I/O models include features that account for magnitude of demand and economies of scale. Some also 

include a full suite of dynamic features, which account for pricing variability and labor cost variability among other 

factors.

4 NREL’s JEDI models are publicly available spreadsheet tools that apply state-specific IMPLAN year 2008 

multipliers. NREL’s JEDI Transmission model has recently been developed; as the current draft model contains 

some proprietary information specific to Wyoming and Rocky Mountain West, it has not yet been released to the 

public. The JEDI analysis tools were developed by NREL in conjunction with MRG & Associates. For more 

information on the JEDI tools, see http://www.nrel.gov/analysis/jedi/. 5 This category is narrower than typical direct economic impacts as it focuses exclusively on on-site labor 

expenditures.
4 

hotels, and retail establishments but also include child care providers and any other entity 

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

JEDI model results are displayed in two different time periods: construction and operations. 

Construction-period results are inherently short term. Jobs are defined as full-time equivalents 

(FTE), or 2,080-hour units of labor (one construction period job equates to one full-time job for 1 

year).6

JEDI results are not intended to be a precise forecast; they are an estimate of potential activity 

resulting from a specific set of projects and scenarios. In addition, JEDI results presuppose that 

projects are financially viable and can be justified independent of their economic development 

value. Results generated by the JEDI models are gross (not net) results. They do not consider 

potential increases or decreases in electricity rates resulting from investments in new 

infrastructure, nor do they consider whether the respective projects displace economic activity 

elsewhere.

 Equipment manufacturing jobs, such as tower manufacturing, are included in 

construction-period jobs as it is ultimately new construction that drives equipment 

manufacturing. All employment related to the construction of the project is reported in FTE. 

Operations-period results are long term, for the life of the project, and are reported as annual jobs 

and economic activity, which continue to accrue throughout the operating life of the facility. 

7

Analysis-specific Methodology

JEDI model categories and default information are based on real-world projects. 

NREL analysts perform interviews with project owners, developers, engineering and design 

firms, construction firms, and others to align model inputs and the corresponding results with

reality, as closely as possible. Of course, individual projects will have varying results depending 

on a wide variety of factors including project location and topography, available local labor, 

available local goods and services, and commodity prices at the time of construction. All results 

in this report are in 2010 dollars. 

This analysis quantifies the Wyoming-specific jobs and economic development activity 

associated with new wind generation, natural gas generation, and new high voltage (HV) 

transmission lines constructed in Wyoming. In order to quantify only economic activity that is 

specific to Wyoming, total project construction and operations expenditures are adjusted based 

on that portion of the expenditure that is likely to be spent in Wyoming. The Wyoming share of 

any given expenditure can be thought of or labeled as the Wyoming local share, the percentage 

of goods and services procured in Wyoming, or the Wyoming purchase coefficient. The analysis 

conducted here is based on a hypothetical deployment scenario and assumes capital and 

operating costs in line with those observed in the industry today. While there is some debate 

regarding the trajectory of future costs,8

 

6 Although the JEDI model is based on IMPLAN, which does not explicitly distinguish full- and part-time jobs, 

JEDI results are converted to FTE using supplementary conversion data provided by IMPLAN. 

 this analysis relies on constant cost inputs throughout 

the development period; detailed cost projections into the future were beyond the scope of this 

study. 

7 In theory, exports of Wyoming power to other parts of the West may offset potential economic activity in the 

localities that, instead of developing their own resources, will purchase Wyoming energy resources. 

8 Various industry representatives interviewed for this report argued that costs could increase or decrease into the 

future. In the wind space, for example, falling turbine prices observed today suggest costs may decline within the 

development period considered here; at the same time, increasing commodity prices (as has been observed in the 

recent past) or a shift to second tier project sites could put upward pressure on costs.
5 

There are some expenditures associated with these projects that are only indirectly captured by 

this analysis. For example, lodging and food expenditures from out-of-state workers along with 

sales and hotel tax payments from purchases by out-of-state workers are only captured by 

inclusion in the miscellaneous expenditure line item.9

JEDI model inputs, including project costs and Wyoming local share values, were determined by 

research, interviews, and conversations with various Wyoming wind, transmission, and natural 

gas industry stakeholders as well as companies that conduct energy sector and other business 

(e.g., legal services) in Wyoming. Detailed interviews with leading engineering, design, and 

construction firms working in the Rocky Mountain region were also utilized. Recent cost 

estimates were derived from review of various industry and publicly available sources (e.g., EIA 

2010b; WECC 2010; Wiser and Bolinger 2010). Costs estimates were subsequently reviewed 

and adjusted based on input from power generation and transmission developers currently 

working in Wyoming or the Rocky Mountain region. Wyoming local share values were also 

generated through interviews with developers operating in Wyoming. 

 In addition, there are intangible effects 

from these projects that are also not captured, including improvements to transmission and grid 

reliability, reductions in incremental new emissions and water use from power generation, and 

electricity price stability resulting from the reduced fuel price risk of wind power. 

Model inputs are generally grounded in the industry as it stands today. To the extent that 

significant new development activity attracts new Wyoming businesses and generates new 

capabilities within existing Wyoming businesses, the results presented here are likely 

conservative. At the same time, primary data sources often estimate local shares (model inputs) 

based upon their past experience and current projects. To the extent that significant infrastructure 

development in Wyoming reduces the availability of Wyoming labor for the whole group of 

projects below what it is today for individual projects (used as an input in the modeling), the 

results presented here may be somewhat optimistic. Nevertheless, by speaking with developers, 

construction companies, county officials, and others, this study relies on the current best 

available Wyoming-specific information based on real projects. When individuals could not be 

reached for interviews, researchers performed literature searches including company website 

data, documentation from the Wyoming Department of Revenue, the Wyoming Department of 

Industrial Siting and Permitting, the Wyoming Office of State Lands & Investments, and the 

University of Wyoming Cooperative Extension Service, among others. In some cases, where 

Wyoming-specific data were not available, the authors relied on representative U.S. data. 

Generation and transmission capacity deployments are constant throughout the analysis and 

referred to as the deployment scenario. Primary data collected from the sources noted above 

were utilized in modeling the jobs and economic development activity resulting from the 

deployment scenario. The base case economic development results represent today’s best 

available information on project costs and the best available estimates of the Wyoming local 

share or purchase coefficients. However, as a result of uncertainty in various modeling 

parameters and given future unknowns, two sensitivities around the base case were also 

modeled. The results from these two additional sensitivities are labeled the high case and low

 

9 These expenditures are captured indirectly via the JEDI “Miscellaneous” expenditure line item. This line item 

represents approximately 3%–4% of total wind construction project capital expenditures and includes out-of-state 

worker per diem expenditures and associated taxes, other labor-related expenditures, and project contingency funds. 

This analysis assumes 50% of these wind-related expenditures occur in Wyoming. 
6 

case. The high case and low case analyses conducted here did not consider changes in the 

underlying infrastructure deployment or changes in estimated capital and operations-related 

costs. Wyoming local share values were the only variables adjusted in the high case and low 

case. Additional details on the parameters and data inputs used in the base case, high case, and 

low case are included in the description of the analysis and results by infrastructure type.
7 

The Infrastructure Deployment Scenario

The economic development modeling that underlies the results presented here is premised on 

deployment of new wind generation, natural gas generation, and HV transmission over the 10-

year period between 2012 and 2021. The hypothetical deployment scenario applied in this 

analysis was developed by the Wyoming Infrastructure Authority (WIA) in conjunction with 

industry stakeholders. Although new Wyoming load growth could result in additional power 

generation and transmission capacity coming online in the state, this deployment scenario is 

intended to reflect new generation and transmission developed to serve out-of-state loads. The 

scenario is grounded in the array of proposed HV transmission and wind generation projects and 

assumes a nominal amount of natural gas generation is added to assist in utilizing new 

transmission capacity. While this scenario is intended to represent real market potential, it is not 

intended to be an explicit market forecast or projection. It was beyond the scope of this analysis 

to conduct technical analyses of existing transmission capacity and reliability and to assess the 

natural gas firming and balancing needs of adding new wind generation. Whether this specific 

scenario is ultimately brought to fruition will depend on an array of market, policy, and other 

variables. 

The deployment scenario applied in this analysis assumes development of two interstate 500 kV 

high voltage direct current (HVDC) transmission lines, each with the capacity to move 

3,000 MW of power, and two interstate 500 kV high voltage alternating current (HVAC) 

transmission lines, each with the capacity to move 1,500 MW of power. This new transmission 

infrastructure is expected to be capable of exporting up to 9,000 MW of new Wyoming power 

generation. The scenario applied in this analysis assumes 9,000 MW of new wind generation and 

1,800 MW of new natural gas generation will be built. Natural gas generation is assumed to be 

used during periods of low wind speeds to maximize the value of the transmission capacity.

10

Depending on wind energy capacity factors and system-wide operations, some capacity on this 

set of transmission lines could potentially be used to export additional Wyoming electricity 

generation. However, detailed system and operational analysis was not within the scope of this 

study, and hence actual utilization of the new transmission lines by the wind and natural gas 

capacity included in this specific scenario was not evaluated. A transmission collector system, a 

network of lower capacity transmission lines that bring electricity from multiple projects to a 

centralized point before it is exported out of state,

 

10 There is no explicit assumption that the natural gas generation will serve in a direct balancing manner for variable 

output wind energy. It is expected to be dispatched and exported as transmission capacity is available.

consisting of a network of 230 kV HVAC 

transmission lines and associated substations is also included. Figure 1 illustrates the deployment 

of this infrastructure over time. Table 1 summarizes the assumed total expenditures associated 

with each of these infrastructure development types. 
8 

Figure 1. Deployment scenario for new wind generation, natural gas generation, and transmission 

capacity in Wyoming 

Table 1. Summary of Infrastructure and Associated Expenditures for Equipment Installed in Wyoming

Infrastructure Type Units 

Installed

Installed Cost Direct Annual Operating 

Expenditures

Wind Generation 9,000 MW $18 billion $225 million

Natural Gas Generation 1,800 MW $2.3 billion $42 million**

500 kV HVDC Transmission Line 2 $2.2 billion $60 million

500 kV HVAC Transmission Line 2 $1.3 billion $35 million

230 kV HVAC Collector System multiple* $660 million $17 million

*Various lines and substations associated with a basic collector system. 

** Excludes fuel costs. 
9 

Total Jobs and Economic Development Activity

The base case Wyoming jobs and economic development activity during the 10-year

construction period is summarized in Table 2. The base case estimates that construction of the 

new infrastructure will support on average 4,700 Wyoming full-time jobs each year for a period 

of 10 years. Average on-site construction-sector employment for the 10-year construction period 

is estimated to be more than 2,100 jobs each year. Compared with today’s Wyoming

construction sector, which employs about 22,000 full- and part-time workers (BLS 2011), on-site 

construction employment averages roughly 10% of the state’s construction labor force.

11,12 

Average annual Wyoming earnings generated from constructing these infrastructure projects 

during this time period are estimated to be on the order of $260 million.13

Table 2. Construction Period Employment and Economic Activity 

 Wyoming economic 

output resulting from the construction period would average $510 million per year over the full 

10-year deployment period. 

(Average Annual Results for 10 Years)

Jobs Wages 

($Million) 

Output 

($Million) 

Project Development and On-site Labor 2,100 $140 $160

Equipment and Supply Chain Activity 2,000 $93 $280

Induced Activity 620 $22 $76 

Total 4,700 $ 260 $510

Note: Totals may not add due to rounding. 

Annual base case operations period results are summarized in Table 3. When all construction 

activities are completed, approximately 2,500 Wyoming long-term jobs are estimated to be 

supported by operations expenditures from these projects. These 2,500 jobs are estimated to 

receive more than $110 million in wages annually, and total operations-related output is 

estimated to be approximately $380 million per year for the life of the combined assets. 

 

11 BLS (2011) data include full- and part-time jobs and all construction-related labor. Only a subset of that labor 

force (i.e., heavy commercial, civil, and craft construction labor) would likely be employed by these types of large 

infrastructure projects. Precise comparison between the results of this study and Wyoming’s existing labor force is 

difficult. This comparison is included only to provide context regarding the general ability of Wyoming to provide 

labor for these projects.

12 Based on the primary data provided to NREL for this analysis, peak construction periods could utilize 20%–30% 

of the states’ current construction labor force. In actuality, this level of demand may require Wyoming-based 

contractors to take on and train additional staff effectively broadening the Wyoming construction labor force. It 

could also require additional out-of-state labor, diminishing the Wyoming share of peak period jobs and economic 

development activity.

13 Earnings include wages as well as employer-paid benefits (e.g., health insurance, and retirement contributions) 
10 

Table 3. Operations Period Employment and Economic Activity Upon Full Deployment 

(Annual for at least 20 Years)

Jobs Wages 

($Million) 

Output 

($Million) 

On-site Labor 680 $40 $40 

Local Revenue and Supply Chain Activity 1,300 $50 $270 

Induced Activity 530 $20 $60 

Total 2,500 $110 $380

Note: Totals may not add due to rounding. 

Total lifetime economic activity can be approximated by combining the construction period 

results and assuming 20 years of operations, the typical financing period for new wind 

generation.14

Employment results over time are shown in Figure 2. Economic output by year is shown in 

Figure 3. There are two peak periods of economic activity during the 10-year construction period 

associated with the construction of the HVDC transmission lines followed by an extended period 

of reduced activity after all construction activities have ceased. The modest employment result 

during the years 2012–2014 is due to the extremely limited existing transmission capacity in 

Wyoming in 2011.

 Given construction-related expenditures and 20 years of operations, total economic 

activity is estimated to range from $12 billion to $15 billion (based on low and high cases).

15

 

14 New natural gas power generation and transmission assets are expected to have lifetimes on the order of 30–40 

years or greater.

Significant deployment of new generation is limited until the new 

transmission lines begin to come into service in 2015. Peak Wyoming employment occurs in 

2015–2016 and again in 2018–2019 where approximately 10,000 jobs and 12,000 jobs are 

supported by these projects, respectively. During these time periods, economic output peaks at 

roughly $1.2 billion and $1.4 billion per year, respectively (Figure 3). The two peak periods are 

the result of significant short-term investment that occurs as new transmission capacity is 

constructed and then rapidly filled by new generation. Operations-related employment increases 

gradually throughout the construction period as new transmission and generation come online 

but levels off once all projects in the deployment scenario are placed in service. Constructionrelated economic activity ultimately diminishes to zero once the full portfolio of infrastructure 

considered in this analysis is in service. Should additional transmission capacity be available, 

additional construction and related activity could result from continued build-out of 

infrastructure. 

15 It is generally assumed that there is no available transmission capacity for incremental new generation in 

Wyoming today. However, it is expected that some new wind generation will be built and exported by reducing 

generation from existing assets. Additional wind or conventional generation could also be built to serve new 

Wyoming load; however, these results are not captured in this analysis.
11 

Figure 2. Base case employment in Wyoming from new power sector infrastructure development 

Figure 3. Base case economic activity in Wyoming from new power sector infrastructure 

development 

Employment results in the base case, by infrastructure type, are shown in Figure 4. This figure 

shows that the wind and transmission projects constitute the largest share of employment and 

economic activity. Wind accounts for roughly 40%–80% of employment over the construction 

period (2012–2020) and nearly 70% of employment during operations. New transmission 

deployment accounts for roughly 15%–50% of employment during construction but only 20% of 
12 

employment during the operations period. Natural gas generation accounts for 4%–15% of 

construction period employment and 10% of operations period employment. The distribution of 

employment by infrastructure type is generally the result of the relative scale of investment 

between the various infrastructure types; however, the ratio of labor costs to material and 

equipment costs for each infrastructure type also plays a role. Figure 4 illustrates the result of the 

very large expenditures that occur over a short period of time typically associated with building 

new transmission capacity. The relatively constant nature of wind-generation-related 

employment is the result of the sustained deployment on the order of 1,500 MW per year 

envisioned in the deployment scenario. To the extent that wind deployment more closely tracks 

the in-service date of the new transmission lines, the peak (and minimum) jobs and economic 

activity observed in Figure 3 and Figure 4 would vary accordingly. 

Figure 4. Base case employment by infrastructure type

Figure 5 illustrates the potential magnitude of variation from the base case determined by the 

high case and low case and resulting from changes in the local share inputs. Assuming the same 

deployment scenario and equivalent capital and operations expenditures, peak employment could 

range from approximately 8,000 Wyoming jobs to more than 14,000 Wyoming jobs. Less 

variability in the operations period employment is observed as a result of greater certainty in the 

allocation of operations period expenditures between Wyoming-based individuals and businesses 

and out-of-state individuals and businesses. Greater certainty in the allocation of expenditures to 

Wyoming during the operations period is the result of the relatively definitive distinction that 

exists between day-to-day operations of the facilities and periodic specialized maintenance. Dayto-day operations generally employ local individuals and service providers. Specialized

maintenance and repair are expected to require out-of-state contractors or service providers.
13 

Figure 5. Estimated range of employment based on variability in reliance on Wyoming goods, 

services, and labor

Direct payments to Wyoming residents and government are often some of the more tangible 

economic results from these types of projects. Landowner lease or easement payments, local 

property and sales tax payments, and the Wyoming wind generation tax are forms of direct 

payments. Although there is some uncertainty with respect to Wyoming’s wind generation tax as 

well as the current sales tax abatement for wind energy equipment, this study utilized existing 

policy provisions to estimate the direct payments to Wyoming landowners and government.16

 

16 Because no new construction before 2012 is captured by this analysis, it is assumed that all new wind projects will 

be subject to state and local sales tax. Wyoming’s wind generation tax is assumed to remain at $1/MWh and go into 

effect after 3 years of project operations (Justia Laws and Regulations 2010).

Figure 6 illustrates the flow of direct payments in the form of property and sales tax, Wyoming 

generation tax, and landowner easement and lease payments.
14 

Figure 6. Total direct payments to Wyoming landowners and government

Note: Transmission right-of-way (ROW) payments are included in the landowner payments above as 

equivalent annual payments and exclude ROW payments on federal land. Property tax estimates are 

based on the estimated average payment in current dollars.

The single largest factor influencing direct payments is the sales tax assessed against new 

generation and transmission equipment. During the peak construction years of 2016 and 2019, 

more than $200 million in sales tax is estimated (assumed sales tax rate of 5.32%). However, as 

new assets are added, property tax and landowner payments become a notable source of direct 

Wyoming payments.17

Summary of Total Results

 Wyoming’s wind generation tax is also a source of direct payments and 

constitutes about 16% of operations period direct payments. 

When considering the high case and low case results, on average, construction of new 

infrastructure is estimated to support 4,000–5,900 jobs, each earning an average of $54,000 per 

year in wages and benefits for a period of 10 years; approximately 1,500–2,600 of these jobs are 

estimated to be in the construction sector. This equates to roughly 10% of Wyoming’s current 

construction labor force. Once all new infrastructure is in service, employment is estimated to be

2,300–2,600 Wyoming jobs earning an average salary and benefits of just over $44,000 per FTE 

per year with roughly 25% of these jobs in direct O&M of the facilities. Assuming construction 

and 20 years of operations, the total Wyoming economic output associated with these projects is 

estimated at $12 billion–$15 billion. This is roughly one-third of the total potential economic 

output that could theoretically accrue to Wyoming from these projects.18

 

17 In reality, property tax payments in nominal dollars will be weighted towards the early years of operations and 

diminish over time as the assets are depreciated. Estimates shown in Figure 6 are based upon the average payment 

calculated from the NPV (discount rate of 3%) of the lifetime property tax payments.

 

18 In today’s global economy, it is unreasonable to think that Wyoming could ever capture 100% of the available 

economic activity from these projects. However, it is possible that Wyoming could capture a larger share than has 

been estimated here.
15 

Wind Generation

Wind resources in Wyoming are abundant. The state is ranked eighth in the country in total 

available wind resources (WPA 2010). Figure 7 shows the state’s wind power resource (based on 

an 80 m turbine hub height). 

Figure 7. Wyoming wind speed at 80 m 

Source: NREL, AWS Truewind 2010
16 

As seen in Figure 8, Wyoming has among the top wind speeds in the nation. 

Figure 8. U.S. wind speed map at 80 m 

Source: WPA 2010 

Figure 9 shows the potential megawatts of rated capacity above a given gross capacity factor 

(i.e., without losses) at 80 m and 100 m heights above ground.19

 

19 Capacity factor is a measure of energy produced by a given generator relative to its potential at continuous full 

power. Typical capacity factors for wind generators are 30%–35%, indicating that on average a wind turbine will 

generate approximately one-third of its rated or maximum generating capacity. Capacity factor is directly affected 

by the wind resource, which is in turn affected by the tower or hub height (better wind resource exists higher off the 

ground). Typical hub heights for the wind industry today are 80 m, although turbines have been installed in the 

United States on towers of 100 m or greater.

 This figure shows the amount of 

available wind power in Wyoming at given capacity factors. Wyoming alone could provide more 

than 400 GW of wind power with a 35% capacity factor or greater (WPA 2010). These data 

apply standard industry exclusions for slope, protected land, wetlands, and other areas unlikely to 

be developed; they do not include other broad-based state-specific exclusions (e.g., sage grouse 

core areas). In 2008, the U.S. Department of Energy estimated that it would require 

approximately 300 GW of wind power to provide 20% of the U.S. electricity consumption from 

wind power (U.S. DOE 2008). With a relatively small population and a vast wind resource, 

electricity generated by Wyoming wind would likely serve load centers in nearby states such as 

Arizona, California, Colorado, Nevada, and Utah. Compared to the rest of the United States and 

to nearby load centers, Wyoming’s wind potential is particularly strong. Figure 10 compares the 

Wyoming wind resource at specific capacity factor values relative to California’s wind resource. 
17 

Figure 9. Wyoming wind resource potential 

Source: WPA 2010 
18 

Figure 10. Wyoming wind resource relative to California 

Source: WPA 2010

Note: Assumes standard land use, environmental and protected land exclusions, and does not consider 

state-specific exclusion zones.

As of the end of 2010, current utility-scale Wyoming wind electricity projects include 

approximately 1,100 MW of wind capacity with a number of projects in various stages of 

development. Wyoming currently ranks 13th

Modeling Inputs

 in the country in installed wind capacity (AWEA 

2011). Projects range from small (e.g., Medicine Bow, which began in 1996 and is under 

10 MW) to what is considered medium to large today (e.g., Wyoming Wind Energy Center at 

144 MW and 80 turbines online in 2003). 

Given Wyoming’s excellent wind resource, the deployment scenario applied here includes 

9,000 MW of new wind power for Wyoming’s energy portfolio, added between 2012 and 2021. 

Installations start gradually at 50 MW in 2012 and ramp up to 1,500 MW in years 2015–2019 as 

new transmission capacity is added; new wind deployment ends by 2020. There are no new 

projects assumed in or after 2020. However, this is a function of the deployment scenario utilized 

here. In reality, additional transmission capacity could allow for continued new wind 

installations. Figure 11 depicts the annual wind installations in Wyoming resulting from the 

deployment scenario analyzed here. 
19 

Figure 11. Wyoming wind deployment by year

Installed project cost for wind power is assumed to be $2,000/kW (Table 4). This estimate is 

grounded in existing U.S. project costs over the time period of 2007–2009 (Wiser and Bolinger 

2010) as well as interviews with various wind project developers considering projects in 

Wyoming.20

Table 4. High Level Wind Power Inputs

The annual direct O&M cost is estimated to be $25/kW, excluding property taxes 

and land lease payments (which are reported separately). In calculating the Wyoming wind 

generation tax, the capacity factor is assumed to be 35%. 

Installed Cost Annual O&M Cost Land Lease ($/MW)* Property Tax ($/MW)*

$2,000/kW $25/kW $6,025 $6,080

*Represents the average payment in current dollars; calculated from the NPV (3% discount rate) of future 

land lease and property tax payments

Land lease payments are assumed to be an average of $6,025/MW/year (over the 20-year 

operating life of a wind project).21

 

20 Although it is possible that installed wind energy costs could decline over time, this analysis assumes constant 

costs into the future. In actuality, wind energy technology faces a variety of upward and downward price pressures, 

each of which were discussed in NREL interviews with industry representatives. Although costs appear to be 

declining today, in the recent past costs have in fact escalated dramatically. It was beyond the scope of this analysis 

to conduct a detailed cost projection for wind and the other infrastructure technologies analyzed here.

This means that a landowner with a 2 MW wind turbine on 

his or her land would earn approximately $12,050/year. In addition, these landowners can 

continue to use virtually all of the land they lease for grazing or crops. Land area covered by 

21 The land lease payment assumptions were calculated from data provided by the Wyoming State Lands office 

(Threewitt 2010) and verified by a representative from a Wyoming landowners association. For additional 

information on Wyoming landowner lease payments, see Parady et al. (2009). 
20 

modern wind power facilities is typically estimated to be 5 MW/km2

. However, only a small 

percentage (2%–5%) of this land is used for the actual turbine and access roads. The remaining 

land can still be used for grazing, ranching, or its original purpose prior to the wind installation. 

Figure 12 shows the land utilized directly by temporary and permanent structures. 

Figure 12. Illustration of total and direct wind project area (temporary and permanent)

Source: Denholm et al. 2009

There are three categories of tax that affect wind farm operations: sales tax, property tax, and 

generation tax. All assumptions for this work are based on existing policy as of January 1, 2011. 

Equipment and materials purchased for use in the construction and ongoing maintenance of the 

wind farms is subject to state and local sales tax of 5.32% (average Wyoming combined state 

and local sales tax rate; WY DOR 2010). Based on the estimated average property tax payment 

over a 20-year project life, the property tax estimate used in these calculations is 

$6,080/MW/year.22

 

22 Property tax estimates applied in this analysis assume property tax is calculated via the installed cost less 

depreciation methodology. Specific methods used to estimate property tax were derived from conversations with the 

Wyoming Department of Revenue Property Tax Division (Felton 2010). 

 The State of Wyoming also taxes the generation of wind electricity. 
21 

Currently, in the beginning of 2011, the generation tax is $1/MWh starting after the third year the 

wind project is in operation (Justia Laws and Regulations 2010). For example, if a project is 

constructed in 2012 and begins operations in 2013, its owner will start paying the generation tax 

in 2016. 

Based on interviews with project developers and engineering and construction firms, inputs for 

the base case, high case, and low case sensitivities were determined (Table 5). For the high case, 

it was assumed that 50% of the towers for new Wyoming wind farms could come from a 

manufacturer based in Wyoming. As of January 2011, there are no tower manufacturers in the 

state. However, if there were to be a market for several thousand megawatts of wind and if other 

conditions favored that decision, it is not unreasonable to think that a wind turbine tower 

manufacturer could open a facility within the state.23 In addition, 75% of the labor for wind 

turbine erection is assumed to be based in the state, instead of 20% in the base case. There is 

currently one Wyoming company providing wind turbine erection services. This company could 

not currently handle 1,500 MW/year. But similar to the tower manufacturing potential, if there 

were a significant increase in demand for new wind installations, the company could hire 

additional workers to accommodate the large worker demand, or competing companies could be 

inspired to locate in Wyoming. It was also assumed after conversations with developers that 20% 

of the construction management team (as opposed to 10%) comes from within Wyoming for the 

high case. For the low case, it was assumed that no construction management personnel (instead 

of 10% in the base case) are based in Wyoming. Legal services were assumed to be primarily 

provided in-house by the out-of-state developer, so that only 20% (as opposed to 70% in the base 

case) of legal services labor comes from Wyoming firms. Table 5 lists the full array of modeling 

inputs used for Wyoming wind projects in the base case, high case, and low case. 

 

23 On February 15, 2011, Worthington Steel and Gestamp announced a joint venture to construct a $40 million 

turbine tower manufacturing facility in Cheyenne with construction commencing in the spring of 2011. In addition, 

in discussions with the Wyoming Business Council, there are other generation-related manufacturers that have 

shown an interest in siting facilities in Wyoming.
22 

Table 5. Wind Power Project Cost Allocation and Percentage of Goods, Services, and Labor Procured in 

Wyoming

Construction Costs Cost Breakdown by 

Parameter

Base 

Case

High 

Case

Low 

Case

Turbine Nacelle & Drivetrain 43% 0% 0% 0%

Blades 10% 0% 0% 0%

Towers 11% 0% 50% 0%

Transportation 8% 0% 0% 0%

General Site Materials 10% 70% 70% 70%

Transformers 1% 0% 0% 0%

Electrical Equipment 1% 20% 20% 20%

HV Line Extensions 2% 10% 10% 10%

Foundation Labor < 1% 30% 30% 30%

Turbine Erection 1% 20% 75% 20%

Electrical Craft Labor 1% 30% 30% 30%

Management/Supervision < 1% 10% 20% 0%

Miscellaneous 4% 50% 50% 50%

Substation/Interconnection 

Materials

1% 10% 10% 10%

Substation/Interconnection Labor < 1% 40% 40% 40%

Engineering 1% 10% 10% 10%

Legal Services 1% 70% 70% 20%

Land Easements < 1% 100% 100% 100%

Site Certificate/Permitting < 1% 70% 70% 70%

Sales Tax 5% 100% 100% 100%

Total 100% 16%* 22%* 15%*

Operations & Maintenance Costs Cost Breakdown by 

Parameter

Base 

Case

High Low

Field Salaries 9% 100%

Unchanged 

Administrative Staff 1% 100%

Management 2% 100%

Vehicles 2% 100%

Site Maintenance/ Miscellaneous 

Services

1% 80%

Fees, Permits, Licenses 0% 100%

Utilities 2% 100%

Insurance 16% 0%

Fuel (Motor Vehicle Gasoline) 1% 100%

Consumables/Tools 5% 100%

Replacement Parts 48% 2%

Sales Tax 3% 100%

Other Taxes/Payments 11% 100%

Total O&M Cost 100% 37%* 

*Percent of the total category of expenditures procured in Wyoming.
23 

Wind Generation Results

The total investment in new wind construction and installations is an estimated $18 billion. 

Applying the local spending coefficients noted in Table 5, approximately 15%–22% (based on 

high and low cases) would be spent within the Wyoming economy; this translates to $2.7 

billion–$4.0 billion. The base case construction spending in Wyoming is $2.9 billion during the 

construction phase. Annual operating expenses from the new wind farms are estimated to be 

$260 million/year, of which approximately $96 million would be spent in Wyoming (37%). 

These results include the specific parameters from Table 5 (construction and operations period 

cost allocations) and do not include electricity sales revenues or debt service requirements. 

Table 6 shows the construction period and annual operations period results from the base case. 

Figure 15 explores the high case and low case sensitivities. 

Table 6. Construction and Operation Periods Economic Activity from 9,000 MW of New Wind 

Generation 

Construction Period

(Average Annual for 10 Years)

Jobs Wages ($Million) Output ($Million) 

Project Development and On-site

Labor 230 $14 $19 

Equipment and Supply Chain Activity 1,600 $77 $210

Induced Activity 300 $11 $37 

Total 2,200 $100 $270

Operations Period

(Average Annual for 20 Years)

Jobs Wages ($Million) Output ($Million) 

On-site Labor 470 $27 $27 

Local Revenue and Supply Chain 

Activity 860 $35 $220 

Induced Activity 400 $14 $48 

Total 1,700 $76 $290

Note: Totals may not add due to rounding.

Table 6 indicates that 10 years of wind construction-related activities are likely to support an 

average of 2,200 Wyoming jobs each year and bring over $100 million in wages and benefits to 

Wyoming workers each year. Operations period economic activity is estimated to support 

approximately $76 million/year in wages and benefits to Wyoming residents and generate 

Wyoming economic output on the order of $290 million/year once all 9,000 MW of new wind is 

completed. Figure 13 depicts the number of Wyoming jobs from wind deployment in the base 

case from 2012–2025. From Figure 13, it is clear that construction project development and onsite labor activity is a relatively small proportion of the total Wyoming employment resulting 

from wind deployments. This is a result of the capital- and material-intensive nature of wind 

projects. Only about 6% of total wind project costs is labor, a subset of which flows through the 

Wyoming economy. 
24 

Figure 13. Wyoming employment from 9,000 MW of new wind power (base case) 

Another way of viewing the economic activity from 9,000 MW of wind is depicted in Figure 14. 

This chart shows the economic activity in terms of economic output in Wyoming over the years 

2012–2025. The economic output trends are similar to the ones shown in the employment chart 

in Figure 13 but illustrate the level of economic activity in dollars rather than employment. 

Figure 14. Economic activity from 9,000 MW of new wind power (base case) 

Figure 15 shows the difference in employment from wind in the base case, high case, and low 

case. Generally these differences would be most important to individuals involved in the supply 

chain and construction of the wind farms. As shown in Figure 15, the number of jobs in the high 
25 

case is approximately 900 FTE above the base case in some years, and much of this increase is 

driven by the utilization of Wyoming-based wind turbine towers included in the high case. In a 

state where the entire workforce is less than 300,000 (BLS 2011), this modest development of 

supply chain capabilities would be a notable boost to the workforce. Variability in economic 

development activity from wind all occur during the construction phases of the wind projects, so 

the long-term jobs are not increased or decreased (see years 2021–2025 for operations-only 

jobs). Uncertainty about Wyoming’s future workforce led the authors to incorporate higher or 

lower percentages of local share values for the supply chain and for construction labor modeling 

inputs. However, based on the interviews used in developing the high case and low case, the 

operations period inputs were comparatively certain, thus they remain unchanged from the base 

case. 

Figure 15. Estimated employment from wind installation in Wyoming—Three sensitivities

Land lease payments are typically negotiated between landowners (in some cases, groups of 

landowners join together to form landowner associations) and project owners. Estimates of land 

lease payments applied here are based on interviews with the Wyoming Office of Lands & 

Investments (Threewitt 2010) as well as Wyoming landowner associations. The estimated annual 

average payment to landowners is approximately $54 million from 9,000 MW of new wind in 

Wyoming. 

For the purpose of this analysis, tax rates and policy are assumed to remain consistent with 

existing policy. In fact, taxes will change over time; legislation was already proposed this past

session that would have altered the future wind energy tax scheme. However, it is impossible to 

know exactly what form future tax schemes will take. Based on existing tax policy, sales tax 

during construction (on equipment and materials purchases) is estimated to be approximately 

$830 million for 9,000 MW of new wind (assuming the statewide average 5.32% sales tax rate). 

Sales tax, from the full fleet of wind generation during the operations period, is estimated to be 

$7.6 million annually. Property taxes on 9,000 MW of new wind generation are estimated to 

result in an annual average payment from project owners to the State of Wyoming of 
26 

approximately $55 million. The Wyoming wind generation tax, which is currently $1/MWh and 

goes into effect after the third year of operations of a wind project (Justia Laws and Regulations 

2004), is estimated to provide an additional $28 million to the State once the full 9,000 MW of 

wind is subject to the tax. Figure 16 illustrates these payments and their variability over time.

Figure 16. Direct payments to Wyoming landowners and government from new wind generation

Note: Property tax and landowner revenues shown here are based on the average payment in current 

dollars. 
27 

Natural Gas Generation

Although Wyoming has only modest natural gas generation assets today, approximately 

156 MW (EIA 2010a), Wyoming’s abundant natural gas resources and pipeline network make it 

a prime candidate for new natural gas generation. In addition, new flexible natural gas generation 

may potentially allow for Wyoming wind generators, whose output is variable, to offer firm 

power products to markets outside of the state. At a minimum, adding new natural gas generation 

in Wyoming is likely to assist in maximizing the value of new transmission capacity and may 

also increase system reliability.24

Modeling Inputs

The deployment scenario applied here assumes four new natural gas power plants, a total of 

1,800 MW, are added to Wyoming’s existing generation assets.25 A single combined-cycle 

300 MW plant is placed in service in 2015 and a second is added in 2018. Both these 

installations occur in conjunction with the in-service date for the new 500 kV HVAC 

transmission lines. Similarly, a 600 MW combined-cycle plant is added in 2016 and a second is 

added in 2019. These installations occur in conjunction with the in-service date of the new 

500 kV HVDC lines. Basic cost and other high-level modeling inputs are shown in Table 7. 

Installation and O&M costs were developed via interviews with developers working in the 

Rocky Mountain region as well as engineering and design firms who also work in the Rocky 

Mountain region. As was the case for wind, equipment and materials purchased for use in the 

construction and ongoing maintenance of the facilities is subject to state and local sales tax. 

Although these new natural gas power plants could use up to 65,000 106

Table 7. High Level Natural Gas Generation Inputs

 Btu of natural gas per 

day, they are not expected to result in any incremental change to Wyoming’s natural gas 

production. As such, no economic activity resulting from the drilling or production of Wyoming 

natural gas is attributed to these power generation facilities. The distribution of expenditures 

between sectors during construction and operations is shown in Table 8. Table 8 also 

summarizes the local spending coefficients or percentage of Wyoming-based goods, services, 

and labor used in the base case, high case, and low case.

Installed Cost Fixed O&M Cost Variable O&M Cost 

(Excluding Fuel) 

Property Tax ($/MW)*

$1,250/kW $8.25/kW $2.90/MWh $5,600

*Represents the average payment in current dollars; calculated from the NPV (3% discount rate) of future 

property tax payments

 

24 While typical wind energy capacity factors are on the order of 30%–35%, Wyoming wind energy capacity factors 

may be on the order of 45%. Even with the higher Wyoming capacity factors, new natural gas generation can help 

utilize transmission capacity during periods of low wind.

25 This capacity is expected to be less than what might be needed to fully balance the variability of the wind 

installations occurring in this analysis.
28 

Table 8. Natural Gas Power Project Cost Allocation and Percentage of Goods, Services, and Labor 

Procured in Wyoming

Construction Costs

Cost Breakdown 

by Parameter Base Case High Case Low Case

 Power Generation 34% 0% 0% 0%

General Facilities 9% 75% 85% 65%

 Plant Equipment 15% 5% 5% 5%

Construction Labor 17% 50% 75% 30%

Project Management 9% 10% 20% 0%

 Construction Utilities > 1% 100% 100% 100%

 Engineering/Design 2% 0% 0% 0%

 Construction Insurance > 1% 0% 0% 0%

 Land 5% 100% 100% 100%

 Permitting Fees 2% 100% 100% 100%

 Grid Intertie 2% 25% 25% 25%

 Spare Parts > 1% 5% 5% 5%

 Sales Tax 3% 100% 100% 100%

Total 100% 28%* 33%* 22%*

Fixed Operations Costs

Cost Breakdown 

by Parameter Base Case High Case Low Case

 Labor 42% 100% 100% 100%

Materials 6% 25% 40% 10%

Services 52% 50% 75% 25%

Total 100% 69%* 83%* 55%*

Variable Operations Costs Cost Breakdown 

by Parameter

Base Case 

Local Share

High Case 

Local Share

Low Case 

Local 

Share

 Routine Maintenance 84% 5% 5% 5%

 Water 5% 100% 100% 100%

 Catalysts & Chemicals 10% 85% 85% 85%

Total 100% 18%* 18%* 18%*

Other Operations Costs Cost Breakdown 

by Parameter

Base Case 

Local Share

High Case 

Local Share

Low Case 

Local 

Share

Fuel 100% 0% 0% 0%

Sales Tax 100% 100% 100% 100%

*Percent of the total category of expenditures procured in Wyoming.
29 

Natural Gas Generation Results

The total investment in new natural gas generation is estimated to be $2.3 billion. Applying the 

local spending coefficients noted in Table 8, an estimated $500 million–$750 million flows 

through the Wyoming economy. Annual operating expenses from the full fleet of new natural 

gas plants, excluding fuel costs, are estimated to be $42 million/year. An estimated $21 million–

$26 million, including sales and property tax, is estimated to flow through the Wyoming 

economy annually during operations of the full fleet of natural gas generation. At a fuel cost of 

$6/106 

A summary of the combined base case activity for full deployment of 1,800 MW of new natural 

gas generation is included in Table 9. From this we can see that construction-related activities are 

likely to support approximately an average of 510 Wyoming jobs for a period of 5 years and 

bring more than $360 million over the 5-year period in wages and benefits to these employees. 

Operations period results are estimated to support more than $12 million/year in wages and 

benefits to Wyoming residents and economic output on the order of $38 million/year once the 

full fleet of generation has been deployed. 

Btu, an additional $425 million/year could flow through the Wyoming economy. 

However, as these facilities are assumed to have no incremental impact on natural gas production 

in Wyoming, no economic activity resulting from these expenditures is captured in this analysis. 

To the extent that these facilities do support new natural gas production in Wyoming, the 

economic activity resulting from these power plants will be significantly increased. 

Table 9. Construction- and Operations-related Economic Activity from 1,800 MW of New Natural Gas

Generation 

Construction Period

(Average Annual for 5 Years)

Jobs Wages ($Million) Output ($Million) 

Project Development and On-site 

Labor 

510 $56 $72

Equipment and Supply Chain Activity 230 $10 $46

Induced Activity 200 $7 $24

Total 940 $72 $140

Operations Period

(Average Annual for 30–40 Years)

Jobs Wages ($Million) Output ($Million) 

On-site Labor 90 $5.8 $5.8

Local Revenue and Supply Chain 

Activity 95 $4.7 $26

Induced Activity 50 $1.8 $6.2

Total 240 $12 $38

Note: Totals may not add due to rounding.

To better illustrate the economic activity associated with new natural gas generation over time, 

Figure 17 couples the employment results shown in Table 9 with the deployment scenario for 

natural gas generation. Figure 18 details the economic output over time. New natural gas 

generation is observed to support a notable increase in economic activity. Construction activities 

are estimated to result in more than 750 short-term jobs and more than $100 million in economic 

output when building a 300 MW plant; more than 1,500 short-term jobs and nearly $250 million 
30 

in economic output results when constructing a 600 MW plant.26 Operations period employment 

is estimated to ramp from nearly 40 jobs after the first 300 MW up to 240 jobs once all natural 

gas generation facilities are operational. Approximately 50% of jobs supported by construction 

activities occur on-site while approximately 40% of operations period jobs occur on-site at the 

facilities.

Figure 17. Wyoming employment from construction and operations of 1,800 MW of new natural 

gas generation

 

26 Assuming it takes 1 year to construct each facility, the respective jobs will last for a period of 1 year. It is possible 

that fewer workers could work on each facility for a longer period of time (i.e., for the 300 MW plant, 375 workers 

could be employed for 2 years).
31 

Figure 18. Wyoming economic output from construction and operations of 1,800 MW of new 

natural gas generation

Note: Results exclude potential economic activity resulting from incremental changes in the production of 

Wyoming natural gas.

Direct payments resulting from development and operation of new natural gas generation are 

exclusively sales and property tax. While use of Wyoming natural gas could potentially also 

generate royalty payments, severance tax payments, and ad valorem tax payments, these are not 

factored into this analysis since no incremental impact on Wyoming natural gas production is 

considered. Sales tax payments from construction activities are estimated at $12 million dollars 

for a 300 MW facility and $24 million for a 600 MW facility. Sales tax from purchases of 

equipment and basic materials during operations is significantly less at approximately 

$275,000/year. Property tax payments are estimated to average $10 million/year.27

To illustrate the potential variability in results, Figure 19 depicts the estimated employment 

associated with new natural gas generation when different levels of Wyoming goods and services 

are used in the construction and operations of the facilities. As shown in Table 8, the primary 

parameters that where adjusted—due to their uncertainty—include general facilities 

procurement, construction labor, and services. As such, these are the primary variables creating 

the range of results shown in Figure 19. Because the construction investments are much greater, 

small differences in the modeling inputs can have a larger impact on construction period results. 

In this case, construction period peak employment could range between 1,200 and 2,000 jobs 

depending on the degree to which Wyoming labor, along with basic goods and services, are 

utilized in this project. However, as is generally the case, the inherent nature of operations period 

expenditures increases certainty in the operations period modeling inputs and generates less 

 

27 As noted previously, real property tax payments will be greater than this early in the life of the facility but will 

decline over time as the assets are depreciated. In calculating the average property tax payment used here, plants 

were depreciated straight-line over a 40-year lifetime; a 3% discount rate was applied to future payments.
32 

estimated variability during this period. Operations period employment is estimated to range 

from 215 to 260 jobs. 

Figure 19. Estimated range of employment from 1,800 MW of new natural gas generation
33 

High Voltage Transmission

The economic activity from the new wind and natural gas generation modeled here hinges on the 

development of new HV transmission. Wyoming’s energy resources far exceed what can be 

consumed by local demand. New transmission connecting Wyoming energy resources with high 

demand population centers in California, Nevada, and Arizona would allow continued export of 

low-cost Wyoming wind and conventional energy resources. Of course, new transmission 

projects also contribute to economic development activity in Wyoming. 

The deployment scenario that underlies this analysis assumes the construction of over 350 miles 

of 230 kV HVAC transmission in Wyoming to serve as a collector system for the 10,800 MW of 

new generation to be added. Construction of the collector system would begin as soon as 2012 

and would be completed in 2020 when all new electricity generating capacity considered in here

has been placed in service.

Four new HV interstate transmission lines are included in the deployment scenario. Two 500 kV 

HVDC lines, each with the capacity to move 3,000 MW of new generation, would be placed in 

service in 2016 and 2019. The Wyoming portion of both of these lines is assumed to be roughly 

225 miles. Two 500 kV HVAC lines, each with the capacity to move 1,500 MW of new 

generation out of Wyoming, are placed in service in 2015 and 2018. The Wyoming portion of the 

500 kV HVAC lines is 310 miles each. The deployment of new transmission is grounded in the 

projects that are currently under development in Wyoming. Figure 20 details the array of projects 

that could ultimately provide the capacity outlined in the deployment scenario used here. 

Additional information on the proposed interstate HV transmission lines is included in Appendix 

B. 
34 

Figure 20. Conceptual representation of interstate transmission lines currently under development 

in Wyoming

Source: WIA 2011

Modeling Inputs 

Table 10 shows the high level cost and direct payment inputs used in the modeling of HV 

transmission lines. These costs, as well as the allocation of costs detailed in Table 11, were 

derived from industry sources (e.g., Black and Veatch 2009; WECC 2010) and in conjunction 

with engineering and design firms working in the Rocky Mountain region. Cost estimates were 

reviewed by the WIA as well as transmission developers currently working in Wyoming. All 

material and equipment purchases utilized in the construction and operations of the lines are 

subject to the average Wyoming sales tax of 5.32%. Transmission right-of-way (ROW) 

payments are calculated as an annual equivalent over 40 years for the purpose of modeling the 

operations period results; however, on state and private land, these payments are ultimately more 

likely to be a one-time payment. This analysis does not capture any of the potential effects on 

electricity rates, system reliability, or grid congestion that may also result from the development 

and construction of these lines (e.g., Pfeifenberger and Newell 2010). 
35 

Table 10. High Level Transmission Cost Inputs

Line 

Type

Total 

Installed 

Cost

($Million) 

Line 

Cost 

($Million

/Mile)

Sub/Converter 

Station Costs 

($Million/Line) 

O&M 

Costs (% 

of Initial 

CapEX)

Property Tax 

($Million/Line)** 

Weighted 

Average ROW 

Payments 

($/Acre)**

500 

kV 

HVDC

$1,100 $1.30 $715 2.5% $2.90 $120

500 

kV 

HVAC

$650 $1.70 $94 2.5% $1.70 $120

230 

kV 

HVAC

$650* $0.64 $60 2.5% $0.30 $120

*Estimated cost for more than 350 miles of a 230 kV collector system.

**Represents the average payment in current dollars; calculated from the NPV (3% discount rate) of 

future property tax and ROW payments

More detailed data showing the breakdown of the total installed cost between the various 

elements of each transmission line is shown in Table 11. The Wyoming purchase coefficients or 

the percentage of goods and services purchased from Wyoming businesses are shown in Table 

12. 

Table 11. Transmission Line Cost Breakdowns Applied in JEDI Modeling

Construction Costs 500 kV HVDC 500 kV HVAC 230 kV 

HVAC

Line Materials & Equipment 11% 35% 19%

Line Labor/Installation 13% 41% 13%

Converter/Substation Materials & Equipment 47% 6% 27%

Converter/Substation Labor 16% 8% 27%

Services & Other Costs 13% 10% 14%

Total Construction Costs 100% 100% 100%

Operations Costs

Labor 20% 10% 10%

Materials and Services 79% 88% 88%

Other O&M Costs 1% 3% 3%

Total O&M Costs 100% 100% 100%
36 

Table 12. Percentage of Transmission-related Expenditures Remaining in Wyoming

500 kV HVDC 500 kV HVAC 230 kV HVAC

Construction 

Costs

Base 

Case

High 

Case

Low 

Case

Base 

Case

High 

Case

Low 

Case

Base 

Case

High 

Case

Low 

Case

Line Materials 9% 7% 14%

Line Labor 69% 79% 49% 70% 79% 50% 68% 77% 48%

Converter/

Substation Labor 0% 2% 2%

Converter/

Substation Labor 64% 78% 44% 53% 68% 33% 50% 65% 31%

Services & 

Other Costs 44% 52% 38% 53% 68% 44% 46% 63% 36%

Total 

Construction 

Costs

27% 32% 21% 43% 49% 32% 33% 40% 25%

Operations 

Costs

Labor 50% 80% 20% 50% 80% 20% 50% 80% 20%

Materials & 

Services 25% 25% 25%

Total O&M Costs 31% 37% 25% 29% 32% 26% 29% 32% 26%

High Voltage Transmission Results

HV transmission projects are critical to realize the economic development potential of new 

generation; however, they are also a significant source of jobs and economic development 

activity. In this analysis, new HV transmission development is the second largest source of jobs 

and economic activity (after wind development) in Wyoming. More than $4 billion over a period 

of 10 years, with the vast majority of this investment occurring in a 5-year period late in the 

coming decade, would be invested in new transmission infrastructure. After project completion, 

an amount equivalent to 2.5% of the total initial capital expenditures, or about $110 million/year

in operations-related expenditures, would continue to flow from these projects. Approximately 

25%–38% of the initial capital expenditures and 26%–35% of the annual O&M expenditures are 

estimated to remain in Wyoming (Table 12). 

A summary of the base case results for new HV transmission is included in Table 13. These 

results indicate that new transmission investments in Wyoming could support approximately 

2,100 jobs for a period of 10 years. Combined total construction activity wages exceed $1 billion 

over the full 10-year period, or approximately $120 million/year on average. Total Wyoming 

economic output from construction of these lines approaches $2 billion. During operations, 

approximately 120 Wyoming jobs would result from activities including monitoring, ROW 

maintenance, and line repairs over the operating lifetime of the infrastructure. The total effect of 

combined O&M expenditures translates into more than 500 jobs for the life of the lines. Earnings 

(wages and benefits) for on-site O&M jobs are estimated to be on the order of $70,000–

$80,000/year while average earnings for all jobs supported by O&M of these lines is on the order 

of $45,000 annually. Total economic output from O&M of this infrastructure is estimated to 

exceed $50 million/year.
37 

Table 13. Construction- and Operations-related Economic Activity from New HV Transmission

Construction Period

(Average Annual for 10 Years)

Jobs Wages ($Million) Output ($Million) 

Project Development and On-site 

Labor 1,600 $100 $100 

Equipment and Supply Chain Activity 240 $11 $43 

Induced Activity 220 $8 $27 

 Total 2,100 $120 $170

Operations Period

(Average Annual for 40 Years)

Jobs Wages ($Million) Output ($Million) 

On-site Labor 120 $9 $9 

Local Revenue and Supply Chain 

Activity 320 $11 $33 

Induced Activity 80 $3 $10 

 Total 520 $23 $52

Note: Totals may not add due to rounding.

To better understand how this economic activity would be distributed over time, Figure 21 

depicts the employment by year while Figure 22 depicts economic output by years. During 

transmission deployment there are two primary peaks. These peaks are associated with the 

estimated construction activities for the four interstate transmission lines. Peak employment is 

estimated at approximately 5,000 jobs, and peak output is estimated at approximately 

$450 million dollars. During construction, the on-site construction and project development 

activity is by far the largest segment capturing more than 70% of economic activity during the 

peak deployment periods. This is primarily a function of the relatively high labor component, 

nearly 50% in the case of the 500 kV HVAC transmission lines, of total project cost for 

transmission. In addition, most of the materials and equipment (e.g., conductor and towers), 

which contribute to the equipment and supply chain economic activity, must be brought in from 

out of state. This greatly reduces the equipment and supply chain economic activity to Wyoming. 

During the operations period, it is actually the local revenue and supply chain segment that 

provides the greatest economic activity with just over 60% of the total economic activity. 
38 

Figure 21. Wyoming employment annually from construction and operations of new HV 

transmission 

Figure 22. Wyoming economic output annually from construction and operations of new HV 

transmission 

Direct payments to Wyoming government and landowners are primarily in the form of sales tax, 

property tax, and ROW payments. Sales tax from construction material and equipment purchases

is estimated to range from $75,000 to nearly $38 million during peak construction (Figure 23). 

Sales taxes from material and equipment purchases during operations were estimated at 

approximately $400,000/year. Average property tax payments per year on the full portfolio of 
39 

HV transmission, projects are estimated at nearly $11 million/year.28 Using estimated ROW 

payments to state and local landowners and excluding ROW payments to the federal 

government, the annual equivalent ROW payments were calculated to be approximately $1.8 

million/year.29 

Figure 23. Direct payments to Wyoming government and landowners

For transmission, there is a relatively large amount of uncertainty in some of the key input 

parameters, as indicated by the range of local purchase coefficients in Table 12. This uncertainty 

is primarily related to the level of Wyoming construction labor that would be utilized in these 

projects. Uncertainty exists in these parameters for a variety of reasons. Transmission 

investments are typically “lumpy” and result in very large expenditures in a very short period of 

time during construction. If the Wyoming construction sector is at or near full employment—a 

phenomena that could be exacerbated by the large deployments of wind and natural gas 

generation occurring at the same time—it may be difficult for Wyoming construction firms to 

meet the demand for these projects. Uncertainty in the share of Wyoming labor that could be 

used on these transmission projects persists into the operations period but is somewhat smaller. 

Nevertheless, significant operations-related labor expenditures (e.g., ROW maintenance) could 

be contracted to out-of-state firms. Given these uncertainties, Figure 24 illustrates that peak 

annual employment estimates range from about 3,800 jobs to more than 6,000 jobs. Operations 

 

28 This estimate is an average based on the NPV (3% discount rate) of all future property tax payments and assumes 

property tax calculated on the installed cost less depreciation (depreciation is straight-line over 40 years) plus the 

estimated capitalized value of the land. To the extent that these projects are sited on federal land and make payments 

in lieu of tax, values may vary.

29 ROW payments were allocated to each landowner type based on their respective share of Wyoming land as 

estimated by the University of Wyoming, Department of Geography and Recreation (Drain 2011). Annual 

equivalent private landowner payments were estimated at approximately $130/acre/year (Black and Veatch 2009), 

while the annual equivalent ROW payment on state land was estimated at approximately $40/acre/year (Vigil 2010). 
40 

period employment is estimated to range from 430–620 Wyoming jobs annually. Output and 

wages vary to a similar degree. 

Figure 24. Estimated range of employment from new HV transmission
41 

Summary & Conclusions

Based on the deployment scenario outlined here, as well as current Wyoming market and labor 

conditions, new wind power, new natural gas generation, and new transmission development in 

Wyoming could provide a sizable boost to the Wyoming economy and its workers. These 

projects represent a significant source of new investment in the state during the construction and 

operations periods (Table 14). 

Table 14. Wyoming Share of Project Spending (For Equipment Installed within Wyoming)

Infrastructure Type Units 

Installed

Total 

Installed Cost

Wyoming 

Share

Annual Operating 

Expenditures

Wyoming 

Share

Wind Generation 9,000 MW $18 billion 16%–22% $225 million 37%

Natural Gas 

Generation 1,800 MW $2.3 billion 22%–33% $42 million* 18%**

500 kV HVDC 

Transmission 2 $2.2 billion 21%–32% $60 million 25%–37%

500 kV HVAC 

Transmission 2 $1.3 billion 32%–49% $35 million 26%–32%

230 kV HVAC 

Transmission Multiple* $660 million 25%–40% $17 million 26%–32%

Total $25 billion 19%–26% $380 million 31%–34%

*Excludes fuel cost as no incremental change in Wyoming based gas production is expected from these 

projects. 

**Weighted average fixed and variable costs.

Note: Totals may not add due to rounding.

As these investments flow through the Wyoming economy, the total economic activity resulting 

from these investments is expected to support: 

• 8,000–14,000 Wyoming jobs annually during peak construction activity; 35%–50% 

of peak construction activity is directly in the construction sector 

• An average (as opposed to peak) of 4,000–5,900 Wyoming jobs each year for 10 

years for construction-related activities

• Wages and benefits to Wyoming workers averaging $200 million–$330 million/year 

during the 10-year construction period

• 2,300–2,600 Wyoming jobs annually during the operational period of the 

infrastructure lifecycle (at least 20 years, based on typical financing for new wind 

power projects) 

• Wages and benefits ranging from $100 million–$120 million/year during operations 

• Statewide economic activity of $1.2 billion in 2016 and $1.4 billion in 2019 (during 

peak construction) and $380 million/year during operations-only years 

• Total Wyoming economic activity on the order of $12 billion–$15 billion 

(construction plus 20 years of operations); this represents approximately 30% of the 

total potential economic activity associated with these projects. 
42 

While the heavy construction sector would see a significant boost in activity from this 

development, the economic activity resulting from these projects is not limited to the 

construction industry sector. Other Wyoming sectors and businesses would also see significant 

economic activity. Wyoming businesses that supply the construction sector, including quarries, 

cement producers, and hardware suppliers would also be affected. Metal fabricators, equipment 

sales firms, legal and financial services personnel, engineers, and even Wyoming banks may 

likewise see a boost in business and economic activity. To the extent that existing or new 

Wyoming manufacturers could supply these projects, a whole array of potential manufacturers 

could also be affected. Finally, service providers, including restaurants, retailers, childcare 

providers, and grocery stores, among many others, would see increased business as construction 

workers and other project beneficiaries spend their paychecks in Wyoming.

Whether this economic potential is ultimately realized or not will depend on a variety of factors. 

Foremost among these is the demand for Wyoming wind along with the development of new 

transmission infrastructure to export wind power and natural gas generated electricity across the 

West. In addition, should the deployment scenario presented here, or one comparable to it, 

become a reality, an array of factors will influence whether Wyoming will capture this level of 

economic activity. Parallel deployment of wind, transmission, and natural gas generation could 

limit Wyoming’s ability to contribute local goods and services to this set of projects at the level 

they have been able to for individual projects in the past and reduce the economic activity below 

what is estimated here. Alternatively, the development of a Wyoming labor force that can 

support this type of infrastructure development, along with a modest amount of Wyoming 

manufacturing capacity to support these types of projects, could significantly increase the 

potential economic activity occurring in Wyoming from these projects (Lantz and Tegen 2008). 

In this regard, data suggests that the wind sector has been responsive to the development of large 

state and regional markets (Lantz et al. 2010) and thus, under the right market conditions, 

Wyoming may be able to capture a greater share of economic activity resulting from these 

projects than has been identified in this study. 
43 

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Lantz, E.; Tegen, S. (2008). Variables Affecting Economic Development of Wind Energy.

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http://www.wcintertie.com/maps/Map%201.pdf. 
46 

Appendix A: Supplementary Background on the Wyoming 

Infrastructure Authority

On August 22, 2003, Wyoming Governor Dave Freudenthal and Utah Governor Mike Leavitt 

announced the formation of the Rocky Mountain Area Transmission Study (RMATS). The 

governors found that: 

For many years, utilities and other entities have been reluctant to make 

investments in needed electric transmission infrastructure. This was due to a 

number of factors, including protracted uncertainties in the regulatory 

environment and nascent regional transmission organizations under 

development. As a consequence of this lack of transmission expansion, 

transmission congestion and bottlenecks were increasing. While this was a 

problem throughout the western interconnect, it was becoming an acute issue in 

areas of the Rocky Mountain sub-region (State of Wyoming 2004, pp. 1-5–1-6).

The governors directed that a charter be developed for the study that specified goals, principles, 

and operating procedures. The study covered several western states including Colorado, Idaho, 

Montana, Utah, and Wyoming. 

Emerging from these efforts, the WIA was established by the Wyoming Legislature in 2004 to 

diversify and expand the state’s economy through improvements in the electric transmission 

system to resolve constraints and create new capacity for the export of Wyoming resources in the 

form of electricity. The enabling legislation authorizes the WIA to plan, finance, construct, 

develop, acquire, own, maintain, and operate transmission infrastructure within and outside the 

State of Wyoming. Also, the legislation provided the WIA with bonding authority of $1 billion 

and other powers to promote transmission development in the state and throughout the region. It 

also provided the State Treasurer, with the approval of the State Loan and Investment Board, the 

authority to invest in WIA bonds. To date the WIA has closed a private placement of $34.5 

million in bonds with the Wyoming State Treasurer for a transmission-related project.

In order to encourage and assure the development of new transmission originating in Wyoming, 

the WIA, in support of the findings and recommendations from the RMATS report (State of 

Wyoming 2004), became a partner in various planning and project efforts within 2 years of the 

release of the report. In addition to its operating budgets, the legislature authorized the State 

Treasury to loan up to $10 million to the WIA in the form of loans to be used for project 

development purposes. Two million dollars has been drawn to date and has been expended on 

specific project development initiatives. 

The governing body of the Authority is composed of a five-member Board of Directors 

appointed by the Governor, with the advice and consent of the Wyoming State Senate. Current 

Board Members and staff are as follows:

• Mike Easley (Chairman), CEO of Powder River Energy 

• Kyle White (Vice-Chairman), Vice President of Regulatory and Governmental 

Affairs for Black Hills Corporation
47 

• Bryce Freeman (Treasurer), Administrator of the Wyoming Office of Consumer 

Advocate 

• J.M. Shafer, (Member), Recently retired from Tri-State Generation and Transmission 

Association, Inc.

• Bret Jones, (Member), Senior Vice President, George K. Baum & Company

Current staff consists of:

• Loyd Drain, Executive Director

• Holly Martinez, Administrative Manager
48 

Appendix B: Transmission Projects Currently Under 

Development in Wyoming

At the time of the formation of the WIA in 2004, no major power transmission projects had been 

developed in Wyoming in over 20 years. Given Wyoming’s excellent wind resources and in part 

as a result of WIA’s monetary participation and support, there are currently six major projects 

under varying stages of development in Wyoming (Figure B-1). The details on each of the 

projects under development are discussed below in the order of their announced formation.

Figure B-1. Transmission Projects in Various Stages of Development in Wyoming

Source: WIA 2011
49 

TransWest Express Transmission Project

The TransWest Express (TWE) Transmission Project is a HVDC transmission line that will 

deliver 3,000 MW of electric power generated in Wyoming to people in California, Arizona, and 

Nevada. With a 725 mile proposed route, the TWE project takes the shortest path between the 

two regions and provides a high-capacity direct link that is intended to be both economically and 

environmentally sensitive, efforts that are facilitated by the use of DC technology. The proposed 

project is sited primarily on federal land. 

The TWE project was inspired in part by the RMATS study (State of Wyoming 2004), which 

identified the potential for communities in the western United States to access the rich renewable 

energy resources in the Rocky Mountains through the development of major transmission lines. 

Originally initiated by Arizona Public Service Company in 2005 with the WIA as a project 

participant, the TWE project was acquired in 2008 by private developer TransWest Express 

LLC. 

TWE has pursued the next phase of development through its permitting and Western Electricity 

Coordinating Council (WECC) rating activities. In 2008, TWE filed an amended ROW

application with the Bureau of Land Management (BLM), which is preparing an Environmental 

Impact Statement pursuant to the National Environmental Policy Act (NEPA). In 2010, Western 

Area Power Administration (WAPA) joined BLM as a lead agency on the Environmental Impact 

Statement (EIS). WAPA also decided to pursue a 50% equity partnership in the TWE project, 

underscoring the project’s sensibility and strategic importance. Meanwhile, the TWE project 

continues to move through the WECC Path Rating process with a planned rating of 3,000 MW. 

The proposed routing of the TWE is shown in Figure B-2. 
50 

Figure B-2. Conceptual routing of TWE 600 kV HVDC transmission line

Source: TWE 2010

TWE Project at a Glance:

• 600 kV HVDC 

• Capacity: 3,000 MW capacity 

• Length: 725 mile proposed route starting in Carbon County, Wyoming, and ending 

south of Las Vegas 

• In-service date: 2015 

• Cost: $3 billion 

• Developer: TransWest Express LLC

• Permit status: BLM and WAPA are joint lead agencies for NEPA compliance; TWE 

submitted amended ROW application in 2008; BLM and WAPA planning to hold 

public scoping meetings in the first quarter of 2011 
51 

• Business model: Focused on development activities, including permitting; business 

model to be determined; WAPA’s portion of the project to be funded through its 

Transmission Infrastructure Program

• Contact: David Smith, David.Smith@tac-denver.com, 303-299-1000

www.transwestexpress.net. 
52 

Wyoming-Colorado Intertie Project

In the fall of 2005, a public/private partnership consisting of the WIA, Trans-Elect Development 

Company (Trans-Elect), and WAPA was formed to consider the expansion of transmission 

capacity across the long-standing transmission constraint along the Wyoming-Colorado border 

known as TOT 3. Today, the project is known as the Wyoming-Colorado Intertie (WCI)

project—a project that was suggested for development by a consensus of regional stakeholders in 

the RMATS study (State of Wyoming 2004). On behalf of the partnership, in November 2005, 

WAPA posted a solicitation of interest in the federal register to gain a measure of interest in the 

project. On the basis of the robust response to the WAPA posting, the parties were sufficiently 

encouraged to proceed with studies. Trans-Elect subsequently assigned their interest to an 

affiliate of AES Corporation (AES), and in 2009, an LS Power Affiliate (LS Power) acquired the 

WCI project from AES. LS Power and WIA continue to maintain a 50/50 partnership for the 

development stage of the WCI project. The proposed routing of the WCI project is shown in 

Figure B-3. 

Figure B-3. Conceptual route for the WCI project 

Source: WCI 2011
53 

The project partners have completed a series of technical, cost, and market fundamentals studies 

with independent consultants. These studies were utilized to create system design, determine 

project costs, identify potential corridors and configurations, develop project schedules, ascertain 

permitting requirements, and assess the competitive position of the WCI. Simultaneously, the 

project partners have held a number of public and individual meetings with generation 

developers and utilities to assess the market demand and the project's economic feasibility. The 

project feasibility assessments have taken advantage of input from stakeholders to gauge support 

for the project as well as other studies that have been or are being conducted within the TOT 3 

area, including the Colorado Long-Range Transmission Plan, developed under the auspices of 

the Colorado Coordinated Planning Group (CCPG), and the Wyoming Joint Queue Study. 

Activities have confirmed the presence of large amounts of wind generation projects under 

development along the path of the WCI project that are expected to have high quality wind 

regimes. The development of the WCI project is expected to be capable of providing low-cost 

wind energy and add geographic diversity to Colorado’s wind energy supply. The WCI project 

may offer increased reliability, relieve an existing transmission constraint, and increase firm 

transmission capacity to neighboring systems. 

WCI Project at a Glance:

• 345 kV HVAC

• Capacity: 850 MW 

• Length: 180 mile transmission line between Wyoming and the Colorado front range 

delivering Wyoming generation to Colorado

• In-service date: 2014 

• Cost: < $300 million 

• Developers: LS Power, WAPA, WIA 

• WECC Path Rating Process: Phase I complete; currently in Phase II 

• ROW & Permitting Status: Will proceed after the awarding of capacity 

• Status: 

o FERC approval to sell transmission rights at negotiated rates 

o FERC approved open access transmission tariff 

o Project has been entered into the WECC CCPG regional planning group 
54 

• Business Model: independent model, end market(s): Load serving entities (i.e., retail 

electricity providers) in Colorado 

• Complementary Projects: Public Service Company of Colorado (PSCO)’s expansion 

of their system in northeast Colorado and the High Plains Express. 

• Contact: Adam Gassaway, agassaway@lspower.com, 636-532-2200 

www.WCIntertie.com. 
55 

Energy Gateway Projects

In May 2007, PacifiCorp launched the Energy Gateway Transmission Expansion—a multi-year 

$6 billion investment plan that will add approximately 2,000 miles of new transmission line 

across the West. Energy Gateway and projects planned by other entities are expected to alleviate 

constraints and address current and future electricity load growth. The network of new 

transmission constituting the Energy Gateway project is shown in Figure B-4. 

Figure B-4. Energy Gateway transmission network, conceptual design 

Source: PacifiCorp 2011

Today, while construction is underway on one Energy Gateway segment and outreach, siting and 

permitting processes continue for several others. Major segments are scheduled to be in service 

by 2014. 

Among its attributes, Energy Gateway will provide access to conventional energy sources and 

connect areas where renewable energy development possibilities are strong including wind, 

solar, biomass, and geothermal potential. 
56 

The Energy Gateway projects are integral to PacifiCorp’s Integrated Resource Plan. This plan 

identifies a need for more transmission lines to deliver electricity from new generating 

resources—either from new generating plants or to provide a path for additional energy 

purchases from other entities in the region. PacifiCorp’s Energy Gateway network of proposed 

transmission seeks to accommodate broad regional transmission needs but prioritizes projects 

with a direct impact on PacifiCorp’s service territory and ratepayers.

Energy Gateway Projects at a Glance:

Energy Gateway West (GWW)

• 500 kV HVAC and 230 kV HVAC in and between Wyoming and Idaho 

• Capacity: Up to 3,000 MW to Wyoming and Idaho 

• Length: Part of approximately 2,000 miles of new HV transmission lines PacifiCorp 

plans to build to address long-term, native-load, and third-party needs in its six-state 

service territory (WY, UT, ID, OR, WA, CA) 

• In-service date (estimated): 2014–2018 

• Cost: Part of $6 billion total Energy Gateway estimated project cost 

• Developers: PacifiCorp and Idaho Power 

• WECC Path Rating Process: Phase II 

• ROW & permitting status: Formal application was filed with the BLM in 2007 

• Status: 

o BLM scheduled to publish the draft Environmental Impact Statement in

December 2010 

o BLM Record of Decision scheduled for November 2012 

o Local and state permitting to occur during 2011–2012 

• Business Model: Utilities rate-base, end market(s): to address PacifiCorp’s and Idaho 

Power’s native-load and third-party needs 

Energy Gateway South (GWS)

• Single Circuit 500 kV HVAC transmission line from Wyoming to central Utah

• Capacity: Up to 1,500 MW 

• Length: Part of approximately 2,000 miles of new HV transmission lines; PacifiCorp 

plans to build to address long-term, native-load, and third-party needs in its six-state 

service territory (WY, UT, ID, OR, WA, CA) 

• In-service date (estimated): 2017–2019 

• Cost: Part of $6 billion total Energy Gateway estimated project cost 

• Developers: PacifiCorp is leading the development 

• WECC Path Rating Process: Phase II 
57 

• ROW & permitting status: Formal ROW application has been filed with BLM in 

2007; third-party contractor for NEPA compliance has been retained 

• Status: 

o BLM Agency scoping scheduled for first quarter 2011 

o Feasibility studies have been completed 

o Stakeholder meetings have been held in Utah, Wyoming, Colorado, and 

Nevada 

o Project has been entered into the WECC, Northern Tier Transmission Group, 

and Southwest Area Transmission regional planning groups 

o Study group meetings started May 2009 

• Business model: Utility-rate base model, end market(s): to address PacifiCorp’s 

native-load needs and third-party transmission service requests 

• Contact: ConstructionProjects@pacificorp.com, 801-220-4221 

http://www.pacificorp.com/tran/tp/eg/gs.html. 
58 

Zephyr Project 

The Zephyr project is a proposed 500 kV HVDC power transmission line originating near 

Chugwater, Wyoming, traversing Idaho, and terminating in the Eldorado Valley, south of Las 

Vegas (Figure B-5). The Zephyr project is estimated to cost approximately $3 billion and is 

scheduled to commence operations in 2016. The Eldorado Valley was chosen as the southern 

terminus as it represents the electric transmission gateway to California and other major markets 

in the Southwest and creates the possibility of a renewable energy trading and balancing hub. 

Zephyr may add an intermediate converter station near the existing Borah substation in southern 

Idaho should future market conditions warrant. 

Figure B-5. Conceptual routing for the 500 kV HVDC Zephyr Project

Source: TransCanada 2011

In February 2009, TransCanada, the project developer, obtained negotiated rate authority from 

the Federal Energy Regulatory Commission and held an open season for transmission capacity. 

This open season resulted in the full 3,000 MW of capacity being subscribed by major wind 

developers operating in Wyoming. Zephyr is the first multi-state transmission project in the 

United States to be fully subscribed by renewable energy developers. 

Zephyr will deliver 3,000 MW of new wind energy generation from Wyoming to loads in the 

Southwest, including California, Nevada, and Arizona. The Zephyr line and the 3,000 MW of 

wind development that would underpin the line are expected to result in approximately $9 billion 
59 

in new investment in the West. Zephyr’s firm delivery of Wyoming wind into California is 

expected to reduce the carbon footprint of needed, new generation resources in the Western 

Interconnection. 

Zephyr's direct and contiguous transmission path from the very high quality wind resource in 

Wyoming to southwestern markets, backed by TransCanada, is one possible solution to 

renewable energy objectives in the West. 

Zephyr Project at a Glance:

• 500 kV HVDC 

• Capacity: 3,000 MW 

• Length: 1,000 miles 

• In-service date: 2016 

• Cost: $3 billion 

• Market(s): Nevada, Arizona, and California 

• Developer: TransCanada

• Status:

o Fully subscribed to three creditworthy wind developers 

o In WECC Path Rating Process, Phase 1

o Preliminary application filed with the BLM 

o Project is in pre-permitting phase 

• Contact: John Dunn, Project Manager—Zephyr Power Transmission Line, 

john_dunn@transcanada.com, 403-920-5566 

http://www.transcanada.com/zephyr.html. 
60 

High Plains Express Transmission Project

The High Plains Express Transmission Project (HPX) is a plan for the expansion and 

reinforcement of the transmission grid in the states of Wyoming, Colorado, New Mexico, and 

Arizona. The goal is to develop a HV backbone transmission system that will enhance reliability 

and increase access to renewable and other diverse generation resources within regional energy 

resource zones (Figure B-6). 

Figure B-6. Conceptual drawing of the proposed High Plains Express project 

Source: High Plains Express 2010

The first stage of the HPX was a joint participation feasibility study that explored transmission 

alternatives and was completed in 2008. The second stage includes more detailed studies to 

further address issues such as siting, permitting, preliminary design options, and commercial 
61 

feasibility. The second stage efforts are in the process of being completed including preparation 

of a final report. The HPX participants are planning to review the second stage results with 

stakeholders near the end of the first quarter of 2011. 

The project participants are now planning to initiate an evaluation (stage 3) effort that will focus 

on evaluating the stage two results, monitoring pertinent regulatory developments, and 

considering the potential for development of the HPX project. The evaluation efforts will include 

further examination of energy demand forecasts, changes in projected costs, renewable 

technology developments and improvements, and other cost factors that could impact both the 

need and economic viability of the project. 

Various potential attributes are driving development of the HPX project and the collaboration 

involved with this effort including: 

• Increase transmission capability to reach various markets

• Increase import and export transfer capabilities

• Minimize environmental impacts by sharing utility corridors

• Help states meet renewable energy standards. 

HPX Project at a Glance

• 500 kV AC transmission line

• Length: approximately 1,300 miles

• In-service date: To be determined

• Cost: Preliminary capital cost estimates range from $3.5 billion for a single circuit 

line to $5.5 billion for one double circuit line 

• Project Participants: Colorado Springs Utilities, Public Service Company of New 

Mexico, Salt River Project, LS Power, Tri-State G&T, WAPA, Xcel Energy, New 

Mexico Renewable Energy Transmission Authority, WIA, Colorado Clean Energy 

Development Authority, Black Hills Corporation, and NextEra Energy Resources. 

• Contact: Thomas Green, Thomas.Green@xcelenergy.com, 303-571-7223 
62 

Overland Transmission Project

LS Power, though its affiliate Jade Energy Associates, LLC (Jade Energy), is developing the 

Overland Transmission Project. The project is planned as a HVDC transmission project capable 

of transmitting 2,000–3,000 MW. The Overland Project will begin in the high wind region of 

southeastern Wyoming and continue west across southern Wyoming and Idaho to Midpoint 

Substation near Twin Falls, Idaho (Figure B-7). At Midpoint Substation, the Overland Project 

will connect with the Southwest Intertie Project (SWIP), which is also being developed by LS 

Power through its affiliate Great Basin Transmission, LLC (Great Basin). The SWIP is a 500 kV 

AC transmission project that will connect Midpoint Substation to the Desert Southwest and 

California load centers in the Eldorado Valley. SWIP is expected to begin construction in early 

2011 and will provide the Overland Project a path to key markets. 

Figure B-7. Proposed Overland Transmission Project, conceptual design

Source: Overland Transmission Project 2011

Jade Energy’s development activities have focused on working with regional communities, 

identifying potential route options, applying for long lead permits, and identifying potential 

transmission customers and market solutions. These efforts include identifying the proposed 

project area, meeting with key stakeholders within the project area, forming working groups 

comprised of members of communities in the region, gathering information critical for the 

development of routing alternatives, and engaging federal, state, and local permitting agencies to 

begin the pursuit of required permits and approvals. Jade Energy and Great Basin are conducting 

an open season process to identify transmission customers for the Overland Project and SWIP. 
63 

The companies received interest for the projects in amounts that far exceed the capacity of either 

project and are negotiating with interested parties. 

Overland Project at a Glance:

• HVDC transmission line from Wyoming to Idaho. 

• Capacity: 2,000–3,000 MW 

• Length: approximately 550 miles 

• In-service date: as early as 2016 

• Cost: Confidential 

• Developer: Jade Energy Associates, LLC 

• ROW & permitting status: SF-299 application has been filed with BLM 

• Business model: Independent or anchor tenant model, end market(s): Idaho, Nevada, 

Arizona, southern California, and Oregon 

• Contact: Luke Papez, lpapez@lspower.com, 636-532-2200 

• www.overlandtransmission.com, www.lspower.com/projects.htm. 
F1147-E(10/2008) 

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4. TITLE AND SUBTITLE

Jobs and Economic Development from New Transmission and 

Generation in Wyoming

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DE-AC36-08GO28308

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This report is intended to inform policymakers, local government officials, and Wyoming residents about the jobs and 

economic development activity that could occur should new infrastructure investments in Wyoming move forward. 

The report and analysis presented is not a projection or a forecast of what will happen. Instead, the report uses a 

hypothetical deployment scenario and economic modeling tools to estimate the jobs and economic activity likely 

associated with these projects if or when they are built.

15. SUBJECT TERMS

Wyoming; wind; natural gas; jobs; economics; high voltage transmission

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