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

Abstract

The last regulated major industry in America, the electric utility
industry , is facing deregulation in the very near future . Similar to
events that occurred in the gas industry a few years ago, it will soon
be possible for facilities managers across the nation to choose th eir
suppliers of electricity .
Facility managers and owners are making plans now to maxi-
mize their opportunities . Many are looking for lower rat es and
barebones service while others are interested in creative options lik e
enhanced services, premium power and value-added services from
their incumbent power supplier and from oth er pla y ers , even now ,
befor e deregulation comes. One creative option that offers win-win
benefits for all parties is a value-added service to t ake ov er op er ation
of 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 US
economy , as businesses plan to get down to th eir "core bu sine ss. "
Building owners, for example, already outsource many services once
provided by in-house personnel-security , janitorial, land scape care ,
HVAC maintenance . Owners can gen erat e cash and get out of the
utilities business by "privatizing" th eir centr al h eating and cooling
equipment to a third party who will maintain , oper at e, and procure
energy, and deliver the "finished goods" of chilled wat er or st eam to
the owner for his use