2010/11 Executive Summary

Uses Of Revenue: Energy

Energy Cost Increases, $7,228,000

The 2010/11 budget plan currently includes $7.2 million to assist with increases in electricity, natural gas, and water/sewer rates occurring at campuses, which will not cover the conservatively projected increases in 2010/11. This projection is reflective of the impact of the 2008 oil and natural gas price increases that could not be fully mitigated with strategic purchases and the resultant response by both public and private utilities to significantly increase rates to pay for growing infrastructure repairs and upgrades. Secondly despite the recession, the implementation of the California Global Climate Solutions Act (AB 32) continues, and utilities have included a combined increase for general rates case filings that includes the necessary cost for compliance, as well as the cost for new and replacement infrastructure. To meet the growing challenge of higher utility costs, campuses continue to pursue energy efficiency initiatives including a systemwide effort to secure ARRA funds to implement Smart Grid at each campus which will provide tune-ups for existing buildings and ‘real-time’ data and analytics to better manage cost and consumption.

  Cost Increase Additional Funding Needed
Electricity 8% $14,000,000
Natural Gas 4% $1,200,000
Water/Sewer 11% $1,550,000
Funding Needed $16,750,000
CSU Budget Plan $7,228,000
Remaining Unfunded Need $9,522,000