Rising costs pummel UB

Rising utility costs ensure an expensive winter for UB as Buffalo's first snowflakes land on campus.

UB's utilities are expected to increase to $35.4 million for the 2005-2006 academic year, up 56.6 percent from the $22.6 million UB paid just a year ago.

These increases have the potential to affect spending in other areas at the university.

"If there's a fixed budget and energy costs go up, there certainly has to be cutbacks in other areas," said the director of Facilities Operations, Louis Schmitt. "It prevents us from funding other things at the university."

And while cuts are a distinct possibility, no official cutbacks have been determined as of yet.

Utility rates normally increase by three or four percent, according to UB utilities manager John Russo, but Hurricanes Katrina and Rita have led to record increases. Energy costs are expected to taper off only slightly, with UB officials estimating a projected cost of $34.9 million for the next academic year.

"We used to pre-purchase gas based on trends. Now I can't predict what's going on anymore," Russo said. "No one can predict when prices will dip."

UB buys power and energy on the open market. Natural gas is purchased from Noco Energy Corp. and delivery services through National Fuel.

"We're getting whacked like everybody else is," said Garry Soehner, associate director for residential student services at University Residence Halls and Apartments. "The costs are high across the nation. It's our responsibility to make sure that students are aware to conserve."

"I think we've been doing a better job just because of all the things we've installed," he said.

Energy saving measures--such as energy-efficient light bulbs and motion sensors that shut lights off automatically--have been implemented across both campuses and have already helped the university cut down on energy costs.

In response to the impending cost increases, UB is implementing an $11.8 million energy conservation project on North Campus, in cooperation with Chevron Energy Solutions. The project includes upgrading fan and heating system motors, temperature control systems and light fixtures.

"There's never been a better time to cut costs," said UB energy officer, Walter Simpson. "University facilities have always been concerned about energy conservation, but we can do even more."

UB officials said the Chevron project will pay for itself in 10-12 years with the money it saves in annual energy costs.

Current demonstrations in alternative energy sources are promising but provide no real cost savings for the university. Six percent of UB's annual energy consumption comes from wind power, but the project is experimental and costly and as a result, UB will not be relying on wind farms anytime soon.

"It's great, but how you gonna do it?" Russo asked. "There's not much there to buy. There's more coming."

Plans are also underway to install solar panels on North Campus next summer with an $800,000 grant awarded to UB from the New York State Energy Research and Development Authority.

The solar panels will produce 100,000 watts of power in a demonstration, enough to power a hundred microwaves or irons.

That's a small amount of power for something so costly.

"Unless we start experimenting with these projects and a real market with mass production is created, costs won't be brought down," Russo said.