By : Kari Andren
Source : http://www.pittsburghlive.com
Category : Small Business Grant
Western Pennsylvania school districts are seeing big savings — some millions of dollars — by shopping for cheaper electricity suppliers.
For many, the dollars saved mean all the difference in making ends meet.
School officials say that in the past, such savings could have been funneled to new programs, but the loss of federal stimulus funds, coupled with Gov. Tom Corbett's proposal to keep state basic education funding level, means utility savings are needed to stave off program cuts and layoffs.
Jay Himes, executive director of the Pennsylvania Association of School Business Officials, said districts have turned to electricity shopping because there is no "downside," and it costs nothing.
"In this no-dollar-left-behind environment, any cost savings are being used to reduce personnel and program cuts," said Himes, whose group does not track how many districts have shopped for electricity. "The new currency is positions saved."
Pittsburgh Public Schools has saved millions of dollars since enrolling in a Duquesne Light choice program in 1997, said district spokeswoman Ebony Pugh. The district has not completed a comprehensive study to determine the exact amount saved, she said.
Pugh said the district's contract runs through January 2014, and savings are directed to the general operating fund to reduce its deficit.
Kiski Area School District expects to save about $84,000 from 2010 through 2015 as a result of contracts with electricity suppliers Direct Energy and First Energy, business manager Peggy Gillespie said.
Ideally, the district would channel that funding to new programs, but that won't happen, she said.
"With what's happened at the state level with funding, it's like one big hole," Gillespie said. "It's survival right now."
The districts are among the 255,109 commercial customers — about 35 percent — that have switched electric suppliers, according to the state Public Utility Commission.
Hempfield Area School District is poised to save more than $1 million during three years as a result of shopping for an energy supplier and becoming more energy-efficient, said Jude Abraham, business manager. The district is saving about $7,500 per month from lower electric rates, he said.
Abraham said Hempfield was not facing program or staff cuts, but the savings did bolster reserve funds and keep new math and language arts curriculum rollouts on pace. The district also upgraded its information technology, he said.
"It helped us continue our upgrading and staying on cycle with our curriculum. It definitely was a contributing factor," Abraham said.
Kiski and Hempfield are among the roughly 80 percent of Westmoreland County school districts using Salem Township-based KeyTex Energy, an energy broker that shops for the best electricity rates. KeyTex solicits competitive bids from power suppliers and advises districts, municipalities and businesses about when to sign multiyear power contracts, said company principal Greg Cammerata.
Engineers and industry analysts sit on KeyTex's "trading floor" monitoring minute-by-minute changes in the electricity market on banks of computer screens with spreadsheets, maps and line graphs.
Other districts have saved money through electricity consortiums organized by intermediate units. Thomas Shetterly, business services director for Intermediate Unit 1, which serves Fayette, Greene and Washington counties, said the contracts give districts a stable cost in a time when districts' budgets are unstable, in part because of fluctuating health care and retirement costs.
"Not only (is it) a savings, but you can count on for the next three years, it's not going to increase," Shetterly said.
Uniontown Area School District has saved about 12 percent annually on electricity bills since joining the consortium in 2010, said Vincent Belczyk, business manager. With a one-year extension that will take the district's contract with Premier Power Solutions through June 2014, savings will total about $75,000, he said.
"Right now, with the federal subsidy that has been decreased, we're trying to make ends meet," he said.
Denise Sheetz, controller for the Albert Gallatin Area School District, said the consortium contract is saving the district about $26,000 annually. Those savings go into the general fund to make up for funding cuts, such as a proposed $330,000 cut in block grant funding under Corbett's budget.
"It might help us save a salary," Sheetz said. "I think we're all in survival mode."
Sto-Rox Superintendent Michael Panza said the district wouldn't save money by switching electricity suppliers. In September, the district spent $6,000 to install a power capacitor, which ensures that excess power isn't sent to its buildings, a move that is expected to save $7,000 this year, he said.
Source : http://www.pittsburghlive.com/x/pittsburghtrib/news/westmoreland/s_784732.html
Source : http://www.pittsburghlive.com
Category : Small Business Grant
Western Pennsylvania school districts are seeing big savings — some millions of dollars — by shopping for cheaper electricity suppliers.
For many, the dollars saved mean all the difference in making ends meet.
School officials say that in the past, such savings could have been funneled to new programs, but the loss of federal stimulus funds, coupled with Gov. Tom Corbett's proposal to keep state basic education funding level, means utility savings are needed to stave off program cuts and layoffs.
Jay Himes, executive director of the Pennsylvania Association of School Business Officials, said districts have turned to electricity shopping because there is no "downside," and it costs nothing.
"In this no-dollar-left-behind environment, any cost savings are being used to reduce personnel and program cuts," said Himes, whose group does not track how many districts have shopped for electricity. "The new currency is positions saved."
Pittsburgh Public Schools has saved millions of dollars since enrolling in a Duquesne Light choice program in 1997, said district spokeswoman Ebony Pugh. The district has not completed a comprehensive study to determine the exact amount saved, she said.
Pugh said the district's contract runs through January 2014, and savings are directed to the general operating fund to reduce its deficit.
Kiski Area School District expects to save about $84,000 from 2010 through 2015 as a result of contracts with electricity suppliers Direct Energy and First Energy, business manager Peggy Gillespie said.
Ideally, the district would channel that funding to new programs, but that won't happen, she said.
"With what's happened at the state level with funding, it's like one big hole," Gillespie said. "It's survival right now."
The districts are among the 255,109 commercial customers — about 35 percent — that have switched electric suppliers, according to the state Public Utility Commission.
Hempfield Area School District is poised to save more than $1 million during three years as a result of shopping for an energy supplier and becoming more energy-efficient, said Jude Abraham, business manager. The district is saving about $7,500 per month from lower electric rates, he said.
Abraham said Hempfield was not facing program or staff cuts, but the savings did bolster reserve funds and keep new math and language arts curriculum rollouts on pace. The district also upgraded its information technology, he said.
"It helped us continue our upgrading and staying on cycle with our curriculum. It definitely was a contributing factor," Abraham said.
Kiski and Hempfield are among the roughly 80 percent of Westmoreland County school districts using Salem Township-based KeyTex Energy, an energy broker that shops for the best electricity rates. KeyTex solicits competitive bids from power suppliers and advises districts, municipalities and businesses about when to sign multiyear power contracts, said company principal Greg Cammerata.
Engineers and industry analysts sit on KeyTex's "trading floor" monitoring minute-by-minute changes in the electricity market on banks of computer screens with spreadsheets, maps and line graphs.
Other districts have saved money through electricity consortiums organized by intermediate units. Thomas Shetterly, business services director for Intermediate Unit 1, which serves Fayette, Greene and Washington counties, said the contracts give districts a stable cost in a time when districts' budgets are unstable, in part because of fluctuating health care and retirement costs.
"Not only (is it) a savings, but you can count on for the next three years, it's not going to increase," Shetterly said.
Uniontown Area School District has saved about 12 percent annually on electricity bills since joining the consortium in 2010, said Vincent Belczyk, business manager. With a one-year extension that will take the district's contract with Premier Power Solutions through June 2014, savings will total about $75,000, he said.
"Right now, with the federal subsidy that has been decreased, we're trying to make ends meet," he said.
Denise Sheetz, controller for the Albert Gallatin Area School District, said the consortium contract is saving the district about $26,000 annually. Those savings go into the general fund to make up for funding cuts, such as a proposed $330,000 cut in block grant funding under Corbett's budget.
"It might help us save a salary," Sheetz said. "I think we're all in survival mode."
Sto-Rox Superintendent Michael Panza said the district wouldn't save money by switching electricity suppliers. In September, the district spent $6,000 to install a power capacitor, which ensures that excess power isn't sent to its buildings, a move that is expected to save $7,000 this year, he said.
Source : http://www.pittsburghlive.com/x/pittsburghtrib/news/westmoreland/s_784732.html
