New Power Plant

Hello Renee, We apologize about the slowness of getting back to you, we are normally able to respond to forum posts in within 24 business hours. In regards to your questions: Your Sector selection looks fine and you are correct to model this as an Industry Change Activity. You are also correct that the Industry Sales for the Event should be include all costs less land and FFE. Proprietor Income is paid to sole proprietors and tends to be high for construction Sectors as many contractors are sole proprietors. If you know in your case that you have no contractors that are sole proprietors on your project you can certainly zero this field out, but you would only want to do that if you know that that is the case. This will also change the total value of Labor Income as Labor Income = Employee Compensation + Proprietor Income. So ideally, if you know your total payments to Employee Compensation (which is only payroll workers and needs to include a fully loaded payroll value) you will also adjust the Employee Compensation when you zero out the Proprietor Income. We would agree with your assessment on the operations Sector. 31 would be the appropriate Sector for looking at power generation operations for private industry, we apologize for the confusion, that Sector includes some electrical aspects which may have resulted in the mis-pick. If you are looking at State & Local Government power generation that would fall under 432. As regards the value of Industry Sales for this you will want it to include the entire value of electricity sales that you are providing. The Industry Sales value is equivalent to Output which represents Gross Sales and is defined by Output = Intermediate Expenditures + Value Added where Intermediate Expenditures is the cost of all goods and services purchased by the company to create their commodity and Value Added is all labor payments, taxes and profits. The only annual value that would not be included in the Industry Sales would be any Capital Expenditures that would occur. These would need to be modeled separately. You can certainly then overwrite the values of Employee Compensation and Employment in IMPLAN in the Event. As regards Proprietor Income the same basic rules apply as above for construction. If you know you have no Proprietor Income then you can certainly zero it out. If it is zero in the Event this means that in your region for that area, there are not proprietors, so unless you were to find out that your plant was owned by a sole proprietor or partnership, you would not want to assume any Proprietor Income. Proprietor Income is different from dividend payments which are paid through the Other Property Type Income portion of Value Added. Hopefully this addresses your questions and concerns, and again we apologize for the delay in the response. Please let us know if you have any additional questions. IMPLAN Support Team

Based on this post and others on similar topics, this is the general approach to model the impact of a power plant (Sector 31 and use the power plant total revenue/sales as direct output and customize model base on company specific employment and wages). Two questions regarding modeling a utility company with multiple power plants and office jobs at HQ location. 1) Should I model each plant separately adjusting for fuel input (ex. gas versus coal) and where input is purchased (meaning within model region or from outside)? 2) How should the HQ office jobs (non power plant jobs) be treated in terms of sector? Apologies in advanced if this is posted somewhere else. I searched but didn't find it.

Hello, 1.) Unfortunately the only advantage to modeling them separately as Industry Change would be that you could customize Employment and Labor Income for each facility. - If you want to try the Analysis-by-Parts method, you can go into the spending patterns and make modifications or remove sources that are undesirable and normalizing the spending pattern. You would then use Activity Level as the Intermediate Expenditures value (operational budget), and then modify Labor Income to match each plant. However, if you don't want to make those modifications, than it unfortunately doesn't make any difference modeling them together or separately. 2.) If there is a HQ in the county, you may want to check the amount in Sector 31 being paid to Sector 381 in Social Accounts>Balance Sheets>Select 31>click the Commodity Demand tab. (my model didn't have anything going to 381). Those non power plant jobs can be used through sector 381-Management of companies and enterprises.