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The Rice Thresher
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by Rachel Rustin thresher editorial staff Room rates next year will not be affected by a nearly $3 million increase in utilities costs to Rice caused by high natural gas prices, Food and Housing Director Mark Ditman said. F&H and the university will be able to cover the expense this year and next year, he said, but if the high rates continue for many years, students may be affected. "The room rates were set really before the full impact of this was clear," Ditman said. "Once there is a reasonable level of confidence of what the long-term outlook for utility costs is going to be, that's when it would be factored into the room rate." This year, Ditman took money from F&H's capital improvements budget to compensate for increased utilities costs. In 1999-2000, 17 percent of the F&H budget of $6.6 million was spent on utilities, compared to 24 percent of the $7.7 million budget that is slated to be spent on utilities in 2001-'02. Ditman pointed out that some of the increase is due to the increased number of rooms. The university paid the utilities bill out of the contingencies budget, which is built into the overall budget for unexpected circumstances. "We won't cut any budgets or services, and we'll deal with it primarily with contingencies that are intended for emergencies or surprises of this sort," Budget Director Kathy Collins said. The future impact of the natural gas crisis on the university's budget will be determined by the natural gas market's fluctuations. "If the market kind of adjusts back to a level of what it was plus inflation, it really shouldn't have any long-term effect to students, but if it looks like energy is going to cost 50 percent more for five to 20 years, it absolutely will," Ditman said. In the meantime, however, students should not feel the impact of the energy crisis in their Rice bills. "The impact on the colleges is not going to be that great because of the way that we have set up the finances," Associate Vice President for Facilities and Engineering Bill Mack said. Ditman has had to cut back on a few capital programs, but the F&H maintenance budget has not been impacted by the increase in gas prices. "You have a capital program each year, and you'll have a list of things you want to do, and the list you want to do is always longer than financial resources," Ditman said. "What this does, instead of getting to item 20, we'll get to item 18." "The [things being eliminated] that come to mind are some painting and landscaping things that can be delayed if necessary," he said. Ditman emphasized that safety repairs, such as elevator renovations and repairs to fire sprinklers and electrical switches, will continue as planned. While the construction planners on campus have kept the increased utilities prices in mind, Project Manager David Rood said they have not had a large impact on any of the projects. "Construction uses energy in the form of utilities - steam, chilled water, electricity - to construct buildings and to operate the equipment that controls their environments," Rodd said. "The costs of energy usage during construction are not computed into the project cost, but minimizing energy usage is a priority for the project team." Rodd also said they have been looking for ways to conserve energy by striving for energy efficiency in both design and construction. Increased utilities prices have been affecting budgets on campus. The $3 million spent on unexpected gas costs came from contingencies usually used for unexpected events. "We are absorbing it within our existing revenue sources and it means that the budget will be very tight and there will be very limited room for initiatives or program growth," Collins said. Both F&E and F&H were working to reduce their energy bills before the hike in energy costs. Ditman had begun to take some steps toward efficiency, such as using lower-wattage bulbs and water-saving devices in the colleges, before the crisis. F&E has also been working to decrease its usage of utilities, including natural gas. F&E has more than doubled the efficiency of the Central Plant, Mack said. "Even though the campus square footage has gone up by almost 30 percent, energy per square foot has been going down," Mack said. "If you calculate it, over the past 11 years, we have saved the university ... almost $30 million." Ditman said he also hopes to upgrade the air conditioning systems in the older residential colleges. Currently, residents have to change the blower speed and open the windows to regulate room temperatures. Opening the windows wastes energy. "The positive effect that [the crisis] can have on the whole campus is just a heightened awareness of not just natural gas, but of all [energy] inputs," Ditman said. "Maybe the nice thing that will happen to us is that we'll make the next step forward in terms of being more efficient."
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