Forbes List of New Ivies- the chase continues

The University entered into a 50-year concession agreement with Georgetown Energy Partners, LLC (the Concessionaire) pursuant to which the University engaged the Concessionaire on an exclusive basis to operate the University’s utility systems and provide utility services to the University. The closing under the concession agreement was held on July 1, 2021. On that date, the Concessionaire made an upfront payment to the University of $801,640,000, which will be recognized as an amount due to the Concessionaire in the University’s consolidated financial statements. Under the agreement, the Concessionaire will operate, manage, modify, maintain, and make capital investments in the utility system. In exchange, the Concessionaire will charge the University a monthly fee, which includes an operating and maintenance (O&M) fee, a fixed fee based upon an agreed future payment schedule, and a variable fee based on the capital improvements and energy conservation measures undertaken by the Concessionaire. The O&M component of the overall fee will be recognized as operating expense, while the fixed fee will be recognized as a reduction in the amount due to the Concessionaire and interest expense. Capital investments in the utility system will be recognized as capital assets and a related long-term payable to the Concessionaire. The variable component of the monthly fee will be recognized as a reduction in the long-term payable to the Concessionaire and interest expense. The total fee is estimated to be $29,917,000 for fiscal year 2022.