OPS' savings on expansive energy project exceeding guarantee
May 19—According to its Year Two Energy Savings Report, Owensboro Public Schools exceeded its guaranteed savings by 44% in the second year of its expansive energy savings project.
The energy savings report, which was presented to the OPS Board of Education by Chris Bozarth, the district's director of maintenance/facilities and technology, details how the project has thus far generated excess savings of more than $1.4 million.
The school district began looking into a vast energy overhaul when Owensboro Municipal Utilities informed the district it would begin raising its rates in 2015. OMU gave the district a 10-year period to bring its rates up to market. Previously, OPS paid a "highly-discounted" rate for its energy, according to district chief financial officer, John David Sandefur.
By the end of that decade-long increase, the district was looking at a $1 million increase in costs.
OPS contracted the engineering corporation CMTA Inc., to handle the project, backed with a guarantee that if the district did not see the savings advertised, CMTA would make the bond payments for the district.
The energy overhaul included changing all light fixtures across the district to LED, replacing aged HVAC equipment, upgrading and replacing outdated plumbing and installing solar panels on seven buildings.
CMTA guaranteed the district would recoup at least $11,683,000 in savings over 20 years, which was the life of the bond that was issued to cover the cost of the project. The total up-front cost for the project was $13,415,000.
CMTA also estimated OPS would see a savings of $1.1 million in maintenance costs.
According to the report, the district has saved $82,446 in years one and two of the project. That, added to the energy costs, means the district has seen an excess in the savings guaranteed to them by CMTA of $574,968.
The district also has decreased its electrical consumption over the two-year period of the project by about 56.8%. Before, OPS used an average of 11.1 million kilowatts per hour. That has decreased to an average of about 4.8 million kWh.
These numbers do reflect a year in which school was in flux, Bozarth said, referencing not all buildings being in use throughout the pandemic. However, savings of this level are still expected in the coming years.
"Basically, this is working and bringing money back into the district like we wanted," Bozarth said.
Michael Johnson, OPS school board vice-chairman, said the energy project is probably one of the best investments the district has ever made.
Board member Dr. Jeremy Luckett noted that Bozarth was asked at a recent Kentucky School Boards Association conference to deliver a presentation about the energy project.
OPS has set the standard for how this can be done across the state, Luckett said.
Board Chairwoman Melissa Decker said this is good news, not only for the district's bank statements, but also for the environment.
"I'm impressed with these numbers," she said.
Bobbie Hayse, bhayse@messenger-inquirer.com, 270-691-7315
