UCs request state funding to offset utility budgetary losses

By Karen Albrecht
Daily Bruin Reporter

UCLA went over budget by $10 million in utility costs for the
first six months of this fiscal year that began July 1.

Losses were almost entirely due to increases of up to 1,000
percent in prices for natural gas, which is necessary to operate
the co-generation plant, said Steven Olsen, vice chancellor of
budget and finance.

More than $24 million was spent on utilities and debt service
for the co-generation plant, which produces 85 percent of the
university’s power, Olsen said. But state funding only
allowed for a $14 million budget over this period. Though UCLA has
not spent all $28 million allocated for utilities costs, only $4
million is left for the remainder of the year.

“If we do not get the funding we have requested, we will
have a serious hole in the budget,” Olsen said.

In an attempt to acquire further state funding for utilities,
UCLA, as well as the other UC campuses, has provided information
regarding the impact of the energy crisis to the UC Office of the
President for presentation to the state.

UCLA’s funding requests total $14 million for assistance
with debt service payments for the co-generation plant and two
projects in progress: new cooling towers in the plant, and
expansion of the thermal energy storage facility.

“The costs are still being calculated, so (UCOP) will not
be coming to us for awhile to ask for backfill,” said Paul
Mitchell, principal consultant for the State Assembly Committee on
Higher Education.

But state funding is not passed on to self-sufficient campus
auxiliary institutions, such as on-campus housing, the UCLA Medical
Center, and Associated Students of UCLA.

UC Berkeley has already suggested that their increased utility
rates in housing may be transferred directly to student dorm fees.
The Committee, however, does not want this to happen, Mitchell
said.

At UCLA, no decisions have been made regarding who pays for
increased energy costs, according to Jack Powazek, assistant vice
chancellor of facilities management.

Gov. Gray Davis, in his State of the State address last month,
encouraged the UC, the California State University, and community
colleges to move toward energy independence. He has set aside $1
billion to aid projects working toward this goal, Olsen said.

The new UCLA cooling towers may receive state funding assistance
to increase the generation-capacity of the plant. Heat from air
conditioning exits through the cooling towers, as does heat
produced by the energy plant. The energy-producing capacity of the
plant is limited by the efficiency of the cooling towers,
especially during summer months.

Larger cooling towers will effectively increase the amount of
electric generating power available in warm weather, Johnson
said.

As a result, the campus will not be required to purchase
additional energy from the Los Angeles Department of Water and
Power, which side-stepped deregulation.

Furthermore, expansion of the thermal energy storage facility,
located near the Bombshelter, will utilize spare equipment and
energy available at night to cool stored water to 42 degrees.
During daylight hours, the water will be pumped into the campus
chilled water system to be used in the air conditioning system.

“These new projects will offset further increases in
energy demands as the campus continues to grow in the
future,” said Lewis Rosman, energy facilities manager.

UC President Richard Atkinson described intentions for rapid
construction of new co-generation plants at Davis, Irvine, Mission
Bay and Riverside, as well as small co-generation photovoltaic cell
systems at Santa Barbara, Santa Cruz, Irvine Medical Center, and
San Diego Medical Center.

There are plans to increase generation capacity at existing
plants at San Diego and San Francisco Medical Center, in addition
to improvements at UCLA, he said.

“To all members of the campus community, please help UCLA
and the state to reduce energy costs by conserving power,”
Johnson said.

SOARING UTILITY PRICES ARE COSTING MILLIONS
UCLA has lost significant funds to increased utility prices. This
diagram describes the campus’ energy sources and relative
costs in the past year. SOURCE: David Johnson, director of energy
services of Facilities Management Steven Olsen, Vice Chancellor of
finance and budget Original by JACOB LIAO/Daily Bruin Web
adaptation by MONICA KWONG/Daily Bruin Senior Staff