An intersection of privatization and public utility regulation: The Ohio State University's energy concession agreement. (August 2019)

• Record Type: Journal Article
• Authors: Dormady, Noah C.; Jones, Douglas N.; Roe, Brian E.; Rub, Guy A.
• Is Part Of: Utilities policy. Volume 59(2019)
• Publication Date: 2019-08
• Subjects: Privatization -- Public utility regulation -- Public-private partnerships -- Contracting out -- University concessions; G18 -- G38 -- L33 -- L43 -- L51; Public utilities -- United States -- Periodicals; Public utilities -- Government policy -- United States -- Periodicals; 363.6
• DOI: 10.1016/j.jup.2019.100929
• Languages: English
• ISSNs: 0957-1787

Abstract

Abstract: U.S. colleges and universities have for some time joined the privatization movement where university functions and assets are turned over to private contractors. Here we present a case of a 50-year comprehensive energy concession agreement by The Ohio State University that generated an up-front payment exceeding a billion dollars. The agreement, with many principles and design practices borrowed directly from economic regulation of public utilities and against the backdrop of the literature on privatization and contract theory, provides an insightful case that informs these literature, as well as future privatization efforts by universities and other large-scale public organizations. Highlights: Public utility regulatory theory and privatization theory are seldom integrated, and applications of both together are rare. However, The Ohio State University's 50-year Comprehensive Energy Management Project (CEMP) is inspired by both. The paper provides insights on the intersection of these theories and informs future similar privatization efforts.