Economic Impact

Electric Cooperatives of Oregon Economic Impact Analysis

From 2018 to 2022, Oregon’s electric cooperatives and distribution cooperatives invested billions in the systems and communities they serve.

$4.8 billion

Invested in capital projects, operations, and maintenance

$159.7 billion

Capital Credits retired and returned to consumer-members

5 years

Of economic impact generated across Oregon and within local cooperative communities

Over this 5-year period, Oregon’s electric cooperatives were responsible for:

Statewide Impact

$4.3 billion

to Oregon’s Gross State Product (GSP)

5392

Average jobs in Oregon each year

$2.2 billion

in labor income in Oregon

$361700000

in federal taxes

$300200000

in taxes in Oregon

Impacts

Indirect Impact

Industries in the supply chain, such as equipment manufacturers and professional services

Induced Impact

Industries affected by employees in the direct and indirect sectors, spending

Total Impact

The total contribution of cooperatives in the economy and their communities

Description of Analysis

CFC and NRECA engaged Strategen Consulting, Inc. to conduct an economic analysis of electric cooperative in Oregon as part of a broader nationwide study. Using IMPLAN, an input-output model of the U.S. economy, Strategen measured:

Direct Effects
Cooperative expenditures

Indirect Effects
Economic activity throughout the supply chain

Induced Effects
Consumer spending by cooperative employees and employees of their suppliers

Together, these measures show the broader economic impact of electric cooperatives in Oregon.

Frequently Asked Questions

What is economic impact analysis?

Economic impact analysis measures the effects that a business, project, policy, or other economic activity has on the economy. It models how spending from these activities ripples through the economy, creating additional economic activity and value. For this project, Strategen Consulting used the IMPLAN model to estimate the total economic impact for each electric cooperative in Oregon, calculating the effect that cooperative expenditures and activity have on the local community and throughout the state.

What is IMPLAN?

IMPLAN is an input-output model of the U.S. economy, which is used to calculate the impacts of economic activity. IMPLAN and other input-output models examine all of the industries in a local economy and estimate all of the ways that spending in 1 sector influences each of the other sectors in the area's economy. "Multipliers" are used to designate how much spending in 1 sector will affect another sector, and to calculate the added indirect and induced impacts throughout the economy.

What are direct, indirect, & induced impacts?

The direct impact is the effect of cooperative spending, such as investment in new electric infrastructure or spending on operations and maintenance. The indirect impact is the effect that direct economic activity has on other industries, such as the suppliers of purchased goods and services. The induced impact reflects the effect of employees of direct and indirect businesses spending their income in the economy.

What is Gross State Product (GSP)?

Gross State Product (GSP) is the total net value added to the state's production of goods and services from all industries, resulting from cooperative operations within the state. GSP is the state counterpart to Gross Domestic Product (GDP), which is used to measure net output at the national level. Likewise, local value added is a measure of gross local product.

What data were used in this analysis?

Form 7 data (for distribution cooperatives) and Form 12 data (for G&Ts), detailing cooperative expenditures related to capital investment, operations, and maintenance activities, as well as the number of employees, payroll, and capital credits paid by distribution cooperatives to consumer-members, were provided by CFC under a confidentiality agreement with Strategen Consulting. These data were used as inputs into the IMPLAN model to estimate the economic impact.