P3 as a Utility (P3U®)

A Public-Private Partnership for Essential Infrastructure PPP without Privatization using a simple and flexible Month-to-Month Utility Agreement

Increase Capital, Control & Infrastructure Effectiveness

Only concessions (typically 20-40 yr contracts) and month-to-month usage-based utilities can result in additional capital availability through qualifying for GASB 60 (concession accounting) or avoiding GASB 87 (lease accounting).

All other forms of PPP result in public debt and affecting credit. Since P3U is cancellable at any time, there is alignment for the infrastructure to be kept reliable, safe, effective and low cost to discourage termination and encourage quality materials, installation and maintenance.

P3U® Unique Key Features

  • Public safe since transparency and alignment result in lowest risk and total cost of usage

  • Simple, public agency friendly agreements that may be structured as a lease or non-lease arrangement

  • Flexibility to terminate at any time; no penalties; month-to-month agreement

  • Additional funds as needed to cover maintenance, upgrades, or modernization

  • Customized usage based on a measurable attribute that varies with your revenue

  • Underwriting sources at zero cost of capital and low yield caps for rate structuring

Why Choose Us?

SP’s P3U® eliminates the 25-40 year commitments where the public is guaranteeing a typically high return that private sector finance requires.