2008/09 Support Budget

Budget Proposal: Mandatory Costs

Energy Cost Increases, $4 Million

The 2008/09 budget plan currently includes $4 million to assist with increases in electricity, natural gas, and water/sewer rates occurring at campuses, which will cover one-third of the projected need. This projection is reflective of the water rate increase assessed to the campuses as a direct result of the passage of Assembly Bill 2951, which allows municipal utilities to pass capital facilities fees on to government agencies. The rate increases for electricity and natural gas are due to increases in demand for technology upgrades, which are no longer being offset by energy efficiency measures. This past year, campuses have seen load growth of 1.5 percent, primarily due to technology infrastructure upgrades and the required power and cooling needed to support the added infrastructure. In the past, incremental energy efficiency initiatives that typically contributed an average consumption reduction of 5 percent per year were keeping pace with both load growth and cost. This is no longer the case, and we anticipate the trend to continue.

Electricity 7% $8,000,000
Natural Gas 8% 2,900,000
Water/Sewer 12% 1,000,000
Total Energy Cost Increase   $11,900,000

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Last Updated: November 13, 2007