How Pellston Public Schools reduced utility costs over 20%

The Detroit News reported on Monday, October 8 in a front page article that
“… school districts increasingly are spending millions of dollars in interest for short-term loans to make payroll and pay utility bills. …241 districts -- almost half of the state's 552 -- will pay about $26 million in interest on one-year state aid notes taken out with the Michigan Municipal Bond Authority on Aug. 20. Statewide, they borrowed $706.5 million at 3.68 percent -- an amount experts predict will increase if school funding remains level.”

However, the Pellston Public Schools found a creative way to reduce utility usage and expenses while improving the comfort and function of their facilities without any out-of-pocket expenses. In fact, the district saved about $191,000 from 2004 to 2006. This savings represents a 21% reduction in their utility costs – even while natural gas rates increased 47% and electricity rates increased almost 27% during the same period.

“If these 240 Michigan School Districts followed our school board’s example, they could overcome escalating energy costs and put more money toward improving education. Plus, many Districts are much larger than Pellston and would reap benefits even beyond what we have experienced,” Bill Tebbe, Superintendent of Pellston Public Schools, said.

In 2004, the Pellston Public School District performed an energy audit to identify where and how the facilities were using energy. Then they developed a tailored energy savings action plan, whereby the identified savings could be used to pay for the needed mechanical retro-fits and updated energy-efficient systems.

Implementation of the energy savings plan cost approximately $560,000 and is paid with installments from the identified savings.

“The data speaks for itself. It may sound too good to be true, but our Michigan schools can’t afford not to investigate creative ways of dealing with our tight budgets and rising energy costs. Thankfully, we have a School Board that saw this opportunity and took full advantage of it to the benefit of our students,” Tebbe said.

To view the complete article, "Schools get loans amid state crisis - Districts uncertain of aid owe millions in interest" by Karen Bouffard, please visit: www.detnews.com/apps/pbcs.dll/article?AID=/20071008/SCHOOLS/710080344/102