School Energy Cuts Save Dollars - and Jobs

Scott Kennedy has saved several jobs at the Central Bucks School District.

Students and parents have probably seen the results of his work, perhaps without even knowing what it actually was.

At CB South, if a couple kids are shooting baskets at just one end of the gym, the lights at the other end cycle off.

At CB West, if only a few students are using the library at any one time, the computer-controlled air handlers throttle down, using less power.

And on July 7, 2010, the district shut down virtually all of the electricity at its 23 schools and other buildings. It earned a $234,000 rebate from the northeast electric supply grid for doing so, Kennedy said.

It's all part of an ongoing campaign to save energy, and therefore save money. And the project that started as a good idea to try has become vital, as the district grapples with falling revenue and faces layoffs and tax increases.

"We've saved a tremendous amount of money - almost $2 million in savings or refunds so far," Kennedy said recently. "I don't know how many jobs that equates to, but it's significant."

As head of operations for the school district, Kennedy began the cost-slashing campaign in 2008 to drive down the bill the district pays for energy. It took a hefty financial investment and faith from the school board that it would work, but so far, officials say, it's working

"It was a big investment," said Superintendent Dr. N. Robert Laws, citing the $14 million the district is spending on improved controls and equipment. "Over the next 14 year period, it was estimated to save us $1 million each year. We’re on target for that."

Kennedy said the district has spent $14 million on a range of energy solutions, from computerized controls to occupancy sensors to more energy efficient lighting.

Those improvements are expected to save $28 million, repaying the initial investment and saving $14 million more, Kennedy said.

In 2007, the district paid $6.5 million in energy bills. This year, Kennedy said, that bill should be around $5 million.

The district has netted additional money, too.

After starting the campaign, Kennedy learned about a program through PECO that would offer rebates for replacing energy-draining lighting with more efficient lights. CB got a check for $274,380 from the PECO Smart Equipment Incentive program last year, he said.

Kennedy also has applied for another rebate program that would net the district $600,000.

Then there is the "demand response" program through the northeast electricity grid, whereby customers can get incentive payments for scaling back their electricity usage during peak times.

CB shut off the power one day in July last year and got a check for $234,000 from PJM, the electric grid for Pennsylvania and 12 other northeast area states, for the effort, Kennedy said.

District business manager Dave Matyas has estimated that participating in the voluntary shutdown program could help the district earn $200,000 each year.

Finally, the district is working with consultants to monitor the energy market and help it buy power when prices are low. The school board recently approved the arrangement with Amerex energy consultant.

Working with Amerex, the district has cut the price it has paid for power from 12 cents per killowatt hour in 2010, to 9.9 cents for the first half of this year and 9.4 cents for the third quarter of this year.

The district just bought its power for October at 9.1 cents per killowatt hour, Kennedy said.

Since the district burns about 30 million killowatt hours each year, the savings has been significant, he said.

The money saved has equated to money the district can spend on other things, the superintendent said.

"That's real money that we’ve used to balance our budget," Laws said. "That’s one reason this budget is $2.5 million less than last years'."

PECO will be using Central Bucks as an example touting the benefits of its energy efficiency program. A brochure highlighting the program has been approved and should be available soon.

The company hopes to motivate other businesses to make their own energy efficiency improvements to reduce energy consumption.