Oxford Power Plant's Economic Benefit to the Town is Staggering Officials Say

By Brian McCready, Patch Editor

Sometimes numbers tell the whole story, and that is what CPV Towantic Energy Center and locally elected officials are hoping will sway public opinion concerning a proposed power plant in Oxford near the Middlebury town line.

CPV Towantic Energy Center officials, Oxford First Selectman George Temple, Southbury First Selectman Edward Edelson, Shelton Mayor Mark Lauretti, Seymour First Selectman Kurt Miller, and others attended a Tuesday morning press conference in Shelton to discuss findings from the University of Connecticut Connecticut Center for Economic Analysis (CCEA) report.

The report’s findings released Tuesday were presented by UConn CCEA President Fred Carstensen and the numbers were staggering.

The report concludes that if the plant is constructed it will generate more than $7.9 billion in new personal income for Connecticut residents over the next 25 years. During construction more than 2,300 jobs will be created including 1,800 sustained jobs.

Over the next 25 years, the state of Connecticut will receive $250 million in tax revenue from this project, Carstensen said.

Despite the enormous tax revenue the power plant is forecast to generate and the thousands of new construction jobs, a group of residents from Oxford, Southbury, Middlebury, and Naugatuck have opposed the project citing environmental concerns, a decrease in property values and health concerns.

Naugatuck Mayor Bob Mezzo did not attend Tuesday’s press conference.

The Federal Aviation Administration has also raised concerns about the project because of its close proximity to the Oxford Airport.

Economic benefits to Oxford

Temple told Oxford Patch that if the project breaks ground in the fall of 2015 as planned, the town will receive a $6 million payment from CPV Towantic Energy Center officials.

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Then until construction is completed, which is tentatively targeted for late 2018, Oxford will receive $2 million annual tax payments, the first selectman said.

Once the power plant is fully built, Oxford will receive annual tax payments of $5 million.

Temple said receiving $5 million in tax revenue annually will reduce the tax rate by about 3 mills, which will greatly help the town in its quest to not raise taxes.

CPV would become the town’s largest taxpayer and represent 10 percent of Oxford’s tax base, Temple said.

Temple also noted that the state is not well-known for economic development right now and a project of this magnitude will help that perception. He said already the town has received inquiries from developers who are interested in creating new businesses in Oxford because of the power plant.

“I support this project every time my wife gives me the electric bill,” Temple said. “This is a project that is not all about the money. It’s providing a service and infrastructure with a low carbon footprint.”

Temple said he knows some people in Oxford oppose the project, but he said their property values will actually go up, not down, and that the environmental impact will be minimal.

“I look forward to working with them,” Temple said of CPV.

Southbury First Selectman’s position on the power plant

Edelson told Southbury Patch that he is very cognizant that many of his constituents oppose the Oxford power plant.

He also said Southbury won’t receive any direct benefit from the project toward its tax rate, but Southbury residents will likely receive jobs by working on the project or creating new jobs near the site.

“I recognize the economic benefits are very significant,” Edelson said. “Other communities have been hit hard by the recession. We need economic activity in our communities. I’m very encouraged by the economic impact numbers and job creation I expect from this project.”

During his official remarks, Edelson said its short-sided for people to just dismiss the project as only being beneficial to Oxford. He said the project is good for the entire Naugatuck Valley region and state of Connecticut.

He said each town in the region needs to have bellwether companies to keep the tax base strong.

“The regional as a whole will benefit from this $1 billion investment, which I think is good for everyone,” Edelson said.

The project details and more reaction from officials

The project was approved on a permit 15-years ago that allows for it to be built as a 512-megawatt plant in an industrial zone on Woodruff Hill Road. Massachusetts-based Competitive Power Venture is seeking to modify the application to accommodate a larger facility at the same location. The Connecticut Siting council agreed to consider an application for a larger power plant at the proposed site in December.

The Connecticut Siting Council is going to conduct a site visit on Thursday. Officials will tour the site at 1:30 p.m., which will be followed by a meeting at 3 p.m. at the Oxford High School. A meeting for public input will be held at 6 p.m.

Former Oxford Economic Economic Director Herman Schuler said the project has always been viable, and already garnered approval previously. He said the project is needed to ensure there is more affordable electricity available for Connecticut residents.

Schuler added that the proposed plant is a “clean” one.

CPV Project Developer Andy Bazinet said people need to remember that this project was already approved in 1999, and all his company has done is “tweak it and we’ve done a lot to improve it.”

“It’s a much more efficient project now,” Bazinet said.

Greater Valley Chamber of Commerce Senior vice President Bill Purcell said he is “really excited” that CPV is working on this project.

“It was a good project 15 years ago, and they’ve made it vastly better,” Purcell said.

Bazinet said the power plant would be one of the most efficient plants in the entire United States.

“The jobs created by this major energy infrastructure project are extremely welcomed by the hard-working construction tradespeople of Connecticut,” said Dave Roche, who is president of the Connecticut State Building Trades Council.

For more information about the CCEA and a copy of the study describing the results please go to www.ccea.uconn.edu.

CPV officials urged anyone with to contact them through their website www.cpvtowantic.com

Photo: CPV Project Developer Andy Bazinet addresses the media before a press conference Tuesday and CCEA President Fred Carstensen presents his economic findings.

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