OutsourCing The Central Plant: A Value-Added Service that Owners Want

Abstract

The last regulated major industry in America, the electric utilityindustry , is facing deregulation in the very near future . Similar toevents that occurred in the gas industry a few years ago, it will soonbe possible for facilities managers across the nation to choose th eirsuppliers of electricity .Facility managers and owners are making plans now to maxi-mize their opportunities . Many are looking for lower rat es andbarebones service while others are interested in creative options lik eenhanced services, premium power and value-added services fromtheir incumbent power supplier and from oth er pla y ers , even now ,befor e deregulation comes. One creative option that offers win-winbenefits for all parties is a value-added service to t ake ov er op er ationof an existing central heating and cooling plant , or develop a new one,for an owner .Out sourcing and downsizing is a tr end everywhe re in th e USeconomy , as businesses plan to get down to th eir "core bu sine ss. "Building owners, for example, already outsource many services onceprovided by in-house personnel-security , janitorial, land scape care ,HVAC maintenance . Owners can gen erat e cash and get out of theutilities business by "privatizing" th eir centr al h eating and coolingequipment to a third party who will maintain , oper at e, and procureenergy, and deliver the "finished goods" of chilled wat er or st eam tothe owner for his use