How it Works

  • Eastern Michigan University has entered into a 50-year partnership with Eagle Energy Partners (“EEP”), as the Concessionaire, wholly owned by CenTrio, which will bring deep energy-sector expertise to modernize utility systems and improve sustainability efforts.
  • Eagle Energy Partners was selected for the project by Gilbane, EMU’s master developer. (Gilbane is the construction and development firm leading the University’s new $200 million residential housing transformation, “Welcome Home 2025.”)
  • Under the terms of the partnership, the University will receive considerable revenue and resources to improve sustainability, implement new energy conservation measures and reduce energy usage, modernize its energy grid, become more “green,” address critical deferred maintenance, while also receiving significant funds to support academic, retention and enrollment initiatives.
  • Eastern and Eagle Energy Partners have identified a series of projects that will result in reductions in energy use and in operating costs, while enhancing the redundancy and reliability of the University’s electrical grid and its capacity.
  • Under the agreement, Eastern will receive approximately $115 million (final amount to be determined on financial close later this summer) to address the following needs:
    • Reduce existing University debt by $25 million, which will generate approximately $1 million in annual debt service savings.
    • Provide $90 million for the University to invest in the EMU Strategic Initiatives Fund, which is projected to generate $5 million annually in investment returns.
  • Eagle Energy Partners will invest $20-25 million of their own funds in immediate infrastructure improvements, which will generate approximately $900,000 annually in utility and operations savings for the University.
  • Eagle Energy Partners will invest $26 million of their own funds (pending final agreements) in energy conservation projects, which will generate $1-1.5 million in annual utility and operations savings for the University.
  • Eastern will pay Eagle Energy Partners $5.3 million annually to manage, operate, maintain and improve the University’s utility infrastructure.
  • Taking into account the investment returns, debt savings, utility and operational savings, and the University payment to the partner, the overall net annual benefit to the University will be $2.7 - 3.2 million.