Air Force Privatizing Electricity Distribution, Transmission Assets at Wright-Patterson AFB

Per Reuters, the U.S. Air Force has reached agreement with the Dayton Power & Light Company on a 50-year contract to own, operate and maintain the electricity distribution system infrastructure serving Wright-Patterson Air Force Base:

The Dayton Power and Light Company (DP&L) and the U.S. Air Force have announced an agreement to privatize the assets for the distribution and transmission of electricity at Wright-Patterson Air Force Base (WPAFB).

The Department of Defense has been privatizing non-core functions on military bases to streamline operations worldwide. Outsourcing its electrical distribution system allows WPAFB to outsource functions not central to its mission. The WPAFB assets included in the contract are:

* Eight substations for the transmission of electricity with 16 transformers
* Over 1,000 electrical poles with more than 21 miles of overhead electrical line
* More than 60 miles of underground electrical line

Over the life of the 50-year contract, DP&L will purchase the equipment and the base will pay DP&L to maintain and operate the system. DP&L was selected in a sealed-bid process after a public request for bid. The agreement is subject to approval by the Public Utilities Commission of Ohio (PUCO).

For more details on some of the U.S. military’s other innovative, non-combat-side privatization initiatives—including the military housing privatization and Army lodging privatization initiatives—see Reason Foundation’s Annual Privatization Report 2009.

Ã?” Reason Foundation’s Privatization Research and Commentary