Enclosed report summarizes the results of energy conservation efforts during the 2005-06 school year (SY05-06), and provides recommended energy conservation incentive program awards and penalties. The report provides a summary of utility consumption and costs, and highlights the impact of several specific conservation efforts. The report documents a 63% increase in electricity costs over a five-year period, primarily resulting from growth in facility space, student population, and utility rates. The report also indicates that consumption per square foot decreased slightly during SY05-06 when compared to SY04-05, after an allowance for weather variations between the two years. Finally, the report indicates that District conservation efforts have achieved an estimated $1.9 million in savings during SY05-06, primarily through the District’s incentive program described below.

During SY05-06, the District continued the incentive program for schools that was originally implemented in 1995. Under this program, schools receive a share of the savings generated by their electricity conservation efforts. Savings are determined by a comparison between targets established for each school and actual consumption, with adjustments for items such as extended programs and facility rentals, temporary mechanical system issues, and major projects. Targets were originally established in 1995, heavily weighted towards historical usage.

For SY05-06, consumption targets were reduced by an average of 10% compared to previous targets, in an effort to encourage additional conservation efforts. While a few schools successfully met their lower targets, the reduced targets resulted in fewer schools receiving incentive payments, smaller average incentive payments, and a significant increase in the number of schools receiving penalties for their failure to meet the consumption targets. These results are summarized below. A complete list of schools and incentive payments is provided in Appendix D in the attachment.

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Provide adequate school facilities for the accomplishment of all District Goals and Critical Success Factors.

Funds in the amount of $115,551 will be expended from the savings in the electric utility budget.