It's certainly a welcome sight. Heavy equipment moving earth along the banks of the Monongahela River in German Township to make way for Duke Energy North America's new power plant signifies progress for Fayette County. Duke Energy's $420 million investment represents the largest ever in Fayette County. Over the next 14 months, hundreds of new, well-paying jobs will have been created in an area that has long been in need of them. At the peak of construction - which began in October and will last 18 months - approximately 700 people will be working at the site. These are jobs that will provide a needed boost throughout the local economy, fueled by a workforce with increased spending power. While those jobs will be lost when construction is complete, they are no less important. Fayette County and all of southwestern Pennsylvania for years have been plagued by a shortage in meaningful jobs. The Duke Energy project will provide a respite, if only a temporary one, for many people who have suffered from a poor local job market. Officials expect that some $30 million will be spent locally on goods and services during the first five years of plant operation. When the facility (a 630-megawatt natural gas- and fuel-oil fired steam turbine plant) goes on line, 25 employees - plant operators and maintenance clerks - will go to work permanently. Those jobs, long-term and local, can only benefit the county's economy. It's important to note how Duke Energy made the decision to locate its new plant in Fayette County. Because a water source is needed to operate the steam turbines in an electric plant, company officials were attracted by the 300-acre site, which is located on the banks of the Mon River. Moreover, the Duke facility can tie in to the switchyard owned by Allegheny Power, which operates a plant across the river in Greene County. The switchyard, leased to Duke Energy by Allegheny Power, will connect Duke-generated electricity to transmission lines, and ultimately a power grid serving the northeast region. Despite those attributes, Duke Energy may not have chosen Fayette County for its new plant had tax incentives not been offered. Sixty of the 300 acres - the area on which the plant will be primarily located - was designated a Keystone Opportunity Expansion Zone (KOEZ). The KOEZ program, initiated by the state, allows for temporary tax abatement to help entice companies to invest and develop in designated areas. For Fayette County, exempting Duke Energy from paying taxes (which would have been but $400 each year) for 10 years is nothing compared to the jobs being created. The Duke Energy project demonstrates that the KOEZ program can be effective in attracting significant investment to a poor, rural area. We share local and state officials' hopes that this project will lead to similar investments in Fayette County.
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