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With energy costs sky rocketing the Lansing Board of Education is considering entering into an Energy Performance Contract.  Doing so can cut energy costs and would have the added benefit of taking energy saving items out of the proposed capital project, either reducing its cost or leaving room in the proposed budget for other needed items.

The school district's Interim Business Administrator Larry Driscoll explained how the contract works.  A company specializing in energy savings conducts an evaluation of the campus, identifying energy saving measures and estimating energy savings based on current usage.  They commit to this level of savings, and if it is not met within the term of the contract they write a check to the school district for the difference.  Entering into a contract of this sort does not require voter approval.

Johnson Controls was contacted by the previous Interim Business Administrator, Gary Alger, because he feared that the proposed capital project could not adequately address all the energy usage issues the district is currently facing.  He wanted to explore the idea of an energy performance contract to see if it could solve that problem while freeing the capital project for other needs.

Mr. Driscoll mentioned a number of energy saving possibilities included installing boilers at the Elementary School, better controls, gas fired booster heaters, heat pumps, windmills and solar powered lighting.  He said this would result in $3.3 million in energy savings over the life of the 18 contract.  The district would have to pay the debt on loans for the equipment and the fees to the company they hire.  After expenses the school district would save nearly $2 million.  This would entail a 33% reduction in utilities which would result in environmental as well as cash savings.

David Angello and Wendy Buchholz, of Johnson Controls, attended Monday's (10/17) regular school board meeting to answer questions about how such a contract  works.  Board members Dan Brown asked what the downside might be, and why it is better to enter into a contract rather than including energy measures into the capital project.  Mr. Angello replied that the downside could be in choosing a company that is not reliable, because they might not still be in business at the end of the contract period.

The board resolved to consider the proposal in a time frame that would allow them to coordinate it with the capital project if both go forward.

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