UI exploring public-private partnership to operate its utilities
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The
University of Iowa's power plant, located along the Iowa River. CREDIT
UI
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The University of Iowa announced it is exploring a potential
public-private partnership (P3) with its utility system.
Under a P3, the UI would maintain ownership of its utility system
while entering into a professional services agreement with a third party. The
agreement would provide the university with an upfront payment that it would
then place into an endowment.
The annual proceeds from that endowment would be invested in the
core missions of the university, as well as strategies for implementing the UI's
Strategic Plan 2016-2021, which was previously approved by the state's
Board of Regents.
In a press release announcing the P3 plan, the UI said it joins a
growing number of institutions across the country looking for new ways to
bridge the gap in available resources.
"The UI is committed to delivering on our mission of
education and research excellence," UI President Bruce Harreld said.
"Investigating this opportunity over the next nine to 10 months in order
to determine if a P3 is right for our campus is a prudent and measured
step."
UI officials said a successful partnership would ensure that it
could keep the following commitments:
- The university will be able to operate the power plant without burning coal no later than Jan. 1, 2025.
- The new plant operator will continue to explore new sources of biofuels, creating sustainable, lower-cost fuel options.
- All facilities will be maintained by the new operator in similar or better condition.
- Campus-wide sustainability efforts will be continued.
The UI expects that the new operating entity would offer
university employees involved in the P3 a position with their company. Those
utility system employees who are not offered a position with the new operating
entity would retain a university position.
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