Transcript Approved by the Board of Regents in 2006 to support rising energy prices due to double digit increases in utility rates and.

Approved by the Board of Regents in 2006 to
support rising energy prices due to double digit
increases in utility rates and in lieu of an
increase in designated tuition.
Utility
% Rate
Change
2003
2004
2005
2006
4 Yr
Average
Natural
Gas
43.95%
8.11%
16.11%
30.70%
24.72%
Electricity
21.9%
-8.37%
0.36%
9.57%
5.87%
Water
12.29%
8.67%
17.14%
11.62%
12.43%
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• Fee Rate was set at $45 for 2006-2007
• Lowered to $35 in 2007-2008
• No rate changes since Fall 2007.
Energy rates are tied to commodity market with
wide price swings in times of shortage or over
supply - volatile and somewhat unpredictable.
Also affected by energy policy changes.
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Energy Fee
RAC = Refiners’ Acquisition Cost
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Utility Rates
$12.00
FY08
•Electricity
•Natural Gas
•Water
$11.00
Purchased Utilities .
63%
$ 6,116,130
27%
$ 2,557,800
10%
$ 961,430
$10.00
$9.00
$8.00
$7.00
$6.00
$5.00
$4.00
$3.00
$2.00
Electricity ($/100 kwh)
Natural Gas ($/mcf)
Water ($/1000 gal)
FY99
$3.84
$3.21
$2.18
FY00
$4.33
$4.30
$2.22
FY01
$4.23
$7.14
$2.52
FY02
$4.32
$4.55
$2.88
FY03
$5.27
$6.56
$3.24
FY04
$4.82
$7.09
$3.52
FY05
$4.84
$8.23
$4.12
FY06
$5.31
$10.76
$4.60
FY07
$5.18
$8.88
$4.44
FY08
$5.74
$9.83
$4.53
FY09
$5.37
$6.69
$4.46
FY10
$5.72
$7.12
$4.75
FY11
$6.09
$7.59
$5.06
Average FY09 Thermal Energy Rates: Steam/Hot Water = $13.82/MMBTU , Chillwater = $0.10/Ton-Hour
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Going forward utility costs for new facilities
should be covered by designated tuition. If
continuation of the fee is requested, can
the fee be downward adjusted?
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FY 2006
FY 2007
FY 2008
FY 2009
FY 2010
Designated
Tuition
$7,531,668
$6,743,343
$6,743,343
$6,743,343
$8,234,500
Energy Fee
0
2,874,132
2,259,300
2,234,902
2,234,000
F&A (Overhead
0
0
0
0
300,000
TOTAL
$7,531,668
$9,617,475
9,002,643
8,978,245
10,768,500
Actual
Expenditures
<8,548,495>
<8,016,760>
<9,960,169>
<8,768,367>
<10,600,000>
<1,016,827>
583,888
<373,638>
<163,760>
583,888
<373,638>
<163,760>
4,740
from Grants &
Contracts)
Prior Year
Carryforward
Cumulative
Variance
<1,016,827>
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Square Footage and Energy Use
(E&G and Non-E&G)
Square Feet
Energy (mmbtu)
5,000,000
800,000
4,500,000
700,000
4,000,000
600,000
3,500,000
500,000
3,000,000
2,500,000
400,000
2,000,000
300,000
1,500,000
200,000
1,000,000
100,000
500,000
0
0
FY99
FY00
FY01
FY02
FY03
FY04
SqFt
FY05
FY06
FY07
FY08
FY09
FY10
FY11
MMBTU (Elect/NG)
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3,500,000
$12,000,000
3,000,000
$10,000,000
2,500,000
$8,000,000
2,000,000
$6,000,000
1,500,000
$4,000,000
1,000,000
$2,000,000
500,000
Cost ($)
$14,000,000
$0
0
FY00
FY01
FY02
FY03
FY04
FY05
Cost
FY06
FY07
FY08
FY09
FY10
FY11
FY12
Sq. Ft.
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Square Feet
E&G Cost and Square Feet
Cost Reduction / Avoidance Measures
Recurring
Amount
1604 Energy Performance Contract
$ 346,500
Large Volume Natural Gas Discount
225,700
ITC Energy Performance Contract
192,600
New Utility Rate Structure
30,200
Variable Frequency Drive Retrofits – JPL
14,400
Lighting Retrofits – Student Housing
4,000
TOTAL
$ 813,400
One-Time
Amount
Peak Demand Limiting – North Thermal Energy Plant
$ 74,000
HVAC Setback Thermostats
48,000
Utility Billing Audits – Rates, Meter Readings, Faulty Meters
43,300
TOTAL
$ 165,300
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Potential Future Cost Reduction Initiatives
– Under Evaluation
 Retrofit Campus Buildings with HVAC and Lighting Motion Sensor
Technology
 Implement Monterey Building Energy Audit Project recommendations,
including but not limited to:





Lighting efficiency upgrades
Occupancy sensors
Removal of overhead doors
Temperature Setbacks
Variable Frequency Drives
 Reclaim blowdown water for irrigation at North and South Thermal
Energy Plants
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Potential Cost Reduction Initiatives,
Continued
 Optimize energy efficiency through:
 Retro-commissioning of tri-Campus buildings
 Implement Campus-Wide Energy Awareness Program
 Implement HVAC temperature set point policy
(Summer: 78 ; Winter: 72)
 Implement Preventative Maintenance Program (Thermography to
Identify Inefficiency, Temperature Sensor Calibration, Ensure
Efficient Operations)
 Implement Energy Audit Program
 Install Complete Utility Metering to Identify Consumption and
Correct Inefficiency
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Analysis conducted to determine the
appropriate Energy fee rate based on:
• Utility consumption of baseline facilities
 Baseline facilities = those online in FY 2006
(when the fee was first assessed)
• Estimated utility rate increases; and
Recommendation - fee should be reduced by
<18.6%> to $28.50 effective Fall 2010
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FY 2010
Proposed
FY 2011
Proposed
FY 2012
Designated Tuition
$8,234,500
$9,215,000
(+980,500)
$9,615,000
(+400,000)
Energy Fee
2,234,000
1,835,000
(-399,000)
1,835,000
F&A (Overhead from Grants &
300,000
400,000
(+100,000)
400,000
TOTAL BUDGET
10,768,500
11,450,000
11,850,000
Actual / Projected
Expenditures
<10,600,000>
Projected
(+20% inc)
<11,450,000>
Projected
(+8% inc)
<11,850,000>
Projected
(+3.5% inc)
Contracts)
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