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Friday Focus: Considering a transformational energy partnership

March 18, 2022

— By Julie Queen, vice chancellor for administrative services

Over the past several years, ÃÛÌÒÓ°Ïñ teams at all levels have made decisions to keep the university running by serving our academic, service, and research missions, even in the most difficult of circumstances. We have been innovative, examined our processes and made adjustments, and considered new or changing ways to focus on our mission with constrained resources, on top of managing through a pandemic. We are, and have been, good stewards of the resources we have. We are creative thinkers, doers, and are willing to try new things. Continuous improvement is part of our culture, and the opportunities emerging from this work ethic are opening new doors.

One exciting potential opportunity we have identified is within Facilities Services, with respect to privatization (also referred to as monetization) of our cogeneration heat and power plant. This is another innovative concept that ÃÛÌÒÓ°Ïñ has been exploring over the last year to help us understand if economically viable options exist. A transaction involving the monetization of our utilities will help us refresh our utilities infrastructure assets on a more regular basis, leverage an experienced utility operator for daily operating and maintenance needs, identify sustainability and energy efficiency initiatives, and provide an upfront payment that would be structured to ensure affordable and predictable utility rates over time. Other flagship universities, including Ohio State University, the University of Iowa, the University of Idaho, Georgetown University and Syracuse University, have successfully utilized this concept and structure in recent years. Based on the analysis done to date, the UA Board of Regents has approved ÃÛÌÒÓ°Ïñ to further explore this initiative and begin the first stage of the privatization process.

With this next phase, ÃÛÌÒÓ°Ïñ will continue to analyze our utility and infrastructure needs, take input from our utility teams, solicit input from potential industry partners, and determine, with the benefit of market input, whether the economic and operational benefits identified translate to a viable privatization. If the market presents a viable option with clear institutional benefits, ÃÛÌÒÓ°Ïñ will bring this to the Board of Regents for a decision prior to moving forward. ÃÛÌÒÓ°Ïñ is committed to transparency, and as we continue to develop material about this analysis it will be located on the Facilities Services website. Associate Vice Chancellor for Facilities Services Kellie Fritze and I will also provide information and engage in discussions around this topic as the process moves forward.

In addition, if a transition to a concessionaire is recommended, ÃÛÌÒÓ°Ïñ is committed to supporting our employees who keep our important infrastructure running across the Troth Yeddha’ Campus. I am so proud of the employees that work so hard, with true passion for ÃÛÌÒÓ°Ïñ, who have time and again explored new opportunities to fit the changing environment around us. Thank you so much for your dedication and support, especially to Facilities Services, and to all of the innovative thinkers that are helping us shape what ÃÛÌÒÓ°Ïñ is able to achieve in the future.

Friday Focus is a column written by a different member of ÃÛÌÒÓ°Ïñ's leadership team every week.