The University of Idaho has looked to our steam plant and related utilities to power the Moscow campus for nearly a century. Its reliability will now be the driver of student access and research initiatives across our statewide system for the next 50 years. The State Board of Education approved a partnership earlier this week with Sacyr Plenary Utility Partners Idaho LLC to lease the steam plant and utility system in a public-private partnership (P3) agreement. The agreement, which includes a long-term lease of the steam plant and associated utilities, will generate about $6 million over each of the next 50 years. We will use those funds to support strategic priorities that, in turn, generate new funds that can be invested into the institution and the future of Idaho. A solid source of energy from wood chip biomass, the plant and our utility system provide an economical and efficient delivery of steam, chilled water and compressed air to meet the energy needs of a small city. That long-term stability is one reason why Sacyr Plenary wants to invest in the system, as well as make enhancements that will benefit the university and the overall power grid. Weâre not alone in using a P3 agreement to invest in our future. The framework we are using has been proven by The Ohio State University and University of Iowa, which have both entered into similar utility system agreements to fund their priorities. At the U of I, net proceeds from an up-front, $225 million payment will be invested with the University of Idaho Foundation, will be managed to last the term of the lease and be drawn from to fund student success, research and efforts to tell our story to recruit students. In the first year, we plan to invest $3 million in graduate student success and research, including graduate student and post-doctoral positions. We intend to expand graduate student scholarships and stipends and increase the number of post-doctoral researchers, including those that support partnerships with Idaho National Laboratory and others. We will also invest in expanding grant and contract writing capacity to help attract the most coveted research projects that align with our support of Idaho industry. Approximately $2 million will go to student success initiatives, including scholarships to help bridge the $5,000 funding gap many of our students experience. Additional scholarship support will improve the go-on rate in Idaho. We will also use this money to invest in distance learning to meet students where they are, particularly in rural communities. Improving access has been one of our priorities, and this funding will ensure more students have the ability to gain entry into the classroom. About $1 million will be invested in telling our story to recruit new students by extolling the beauty and experience of our Moscow campus, the quality of the No. 1 Best Value public university in the West, the success of our alumni and the lifelong benefits of joining the Vandal Family. This utility partnership provides an incredible opportunity for the university to invest in itself â and our collective future. It turns a cost center into a source of revenue that: - Enables more students to attend the University of Idaho,
- Provides needed investment in research that is aligned with Idaho industry,
- Delivers needed funding to our marketing and student recruiting engines,
- Establishes a 50-year capital plan to address utility plant deferred maintenance,
- Benefits taxpayers by relieving Idahoâs Permanent Building Fund of investment in the plant and
- Creates a career path for our utility employees that the university is unable to provide.
In short, this partnership is a wise business decision that benefits our many stakeholders. It is the latest of several efforts we have taken to improve the financial position of the institution. Itâs yet another reason why I believe our university is on the rise. There is a bright future for our University of Idaho. |