Integral department -

This is the most common arrangement in American institutions. The heating, cooling, and cogeneration apparatus is owned directly by the institution and operated as an internal department, usually as a subcomponent of the Physical Plant or Facilities organization. Capital needs are incorporated into the general capital budgeting process and in most cases would compete with capital needs of other programs. Plant staff are employees of the institution, and plant capital, debt, and operating costs are incorporated wholly into the institution's financial statement.

Thermal delivery is generally confined to institution-owned facilities, but there are some cases where other customers have been served:

• Columbia University provides steam to a number of nearby buildings in Manhattan
• Iowa State University provides steam to the State Transportation Department complex.
• University of Nebraska-Lincoln provides steam to the State Capitol Complex
• University of Minnesota provides steam to four other institutions.
• The Coors Brewery in Golden, Colorado provides steam to the Colorado School of Mines campus.

Fully-owned Subsidiary

This situation is not believed to be too common, but as it is essentially transparent to outside observers may have more applications. The advantages of this arrangement are few, and under current FASB rules subsidiary debt may be relegated to a footnote but is fundamentally incorporated into the parent entity's financial statement. The subsidiary could likely be incorporated as a 501c3 corporation regardless of the tax status of the parent entity.

Another variation of this is used at some state colleges and universities through an Auxiliary Services arrangement.

• Harvard Medical Area Total Energy Plant serving six hospitals affiliated with Harvard University. The plant is owned and operated by Cogeneration Management Company, a wholly-owned subsidiary of Harvard University.
• Iowa State University utility plant is operated as a separate auxiliary service.
• University of Iowa
• Texas A&M
• University of Cincinnati

Partially-owned Subsidiary/Partnership Serving Only One Institution

In some situations it is feasible for the institution to enter into a joint venture or partnership agreement with an outside party to own and operate a plant. The only known college/university example is:

• University of California - Berkeley - cogeneration plant owned by university and an outside party.

Partially-owned Subsidiary Serving Other Customers

Where no single entity owns more than 50% of a separate corporate entity, the subsidiary's financial statement becomes completely independent of the parent. In particular, debt held by the separate entity would not appear on the balance sheet of the owners. The separate entity could be a for-profit enterprise, a 501c3 corporation, or a non-profit cooperative. This arranged is used to some degree by the following institutions, although the corporate structure of each is unique to some degree:

• Medical Center Company - serves several educational and medical institutions in the University Circle area of Cleveland. (Case Western Reserve University, etc.)
• Bellefield Plant - serves several educational institutions in Pittsburgh. (Carnegie-Mellon, University of Pittsburgh, etc.)
• Franking Heating Plant - Serves the Mayo Clinic and a community college in Rochester, Minnesota
• Rochester District Heating Cooperative - Provides general utility steam service in Rochester, New York.
• PACT, Ltd. - provides general utility steam service in Pittsburgh.
• Duluth Steam Cooperative Association - Operates city-owned general utility steam system in Duluth.

Plant owned by others, supplies only institutional needs

This arrangement is common for certain cogeneration facilities and are generally for a fixed period of 15 to 20 years.

• University of Wisconsin Whitewater [This plant may also serve additional customers in the Whitewater Business Park.]
• University of Florida
• Standard University - New cogen plant built by outside developers.
• Syracuse University - New cogen plant built by outside developers. Syracuse's steam system also serves several nearby institutions.
• University of Northern Colorado - New cogen plant built by outside developers.
• Duquense University - New cogen plant under construction by outside developers. See ERI Services web page at: http://www.eriservices.com/brochure/success.html
• University of Wisconsin Whitewater - New cogen plant under construction by outside developers.
• University of Minnesota - Existing plant sold or leased (?) to outside company (Foster Wheeler)
• Coors Brewery, Golden, Colorado - Existing plant leased (?) to outside company.
• Harrison Radiator - Lockport, New York - New cogen plant built by outside developers.
• Deepwater Cogeneration, Pasadena, Texas
• Numerous other industrial facilities.

Institution supplied by commercial district heating system, no ownership by institution.

Necessarily limited to those institutions in areas served by commercial systems.

• Harvard University, Cambridge
• University of Pennsylvania, Pittsburgh
• Drexel University, Philadelphia
• Indiana University, Indianapolis
• Purdue University, Indianapolis
• University of Colorado at Denver (plus 2 other institutions at Auraria Higher Education Center in Denver)
• Youngstown State University
• Numerous industrial facilities

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