KCSD considers ambitious plan to save over $2 million in energy costs in next 15 years

LOCK HAVEN - Keystone Central School district officials are embarking on an ambitious scheme to save over $2 million in energy costs over the next 15 years.

The program will also result in some "dramatic improvements" in the learning environment for Keystone Central, according to officials from the private firm specializing in this type of plan.

The CM3 Program represents a growing effort on the part of school districts nationwide to participate in "energy performance contracting."

The initiative takes advantage of federal policies promoting energy savings.

According to Keystone Maintenance Manager Gary Packer, it's an affordable way to make investments in energy-efficiency equipment.

By contracting with CM3, the district gets immediate upgrades - with no up-front capital - and pays for them later through the energy savings that result.

In simplest terms the initiative works like this:

- A private company promises to save the district $30,000 in its electrical bill over 10 years by installing a simple switch in each of the schools.

- The switch is installed, and instead of paying the electric company the $3,000 a year, the district pays the company that installed the switch.

- The district pays out no more than it would have paid without the switch and gets new, energy-efficient switches.

- After 10 years, the district gets to keep the entire $3,000 savings each year.

- If the new switches don't work, the company, and not the district, eats the loss.

Packer said the district will see benefits immediately, by getting new equipment, expertise from energy service professionals and ongoing maintenance services.

Best of all, he said, the savings are guaranteed.

In Keystone, the upgrades will occur at Bucktail Middle and High School, Administration Building, and Dickey, Lamar, Flemington, Liberty-Curtin, and Sugar Valley elementary schools.

The highlights of the financial aspects of CM3's Proposal:

- Total energy savings - $ 2.88 million.

- Total operational cost savings - $61,297

- Total project installed cost - $ 2.05 million

- Total project interest expense - $650,833

- Measurement and verification costs - $ 60,071

- Positive cash flow - $180,073.

Packer said the savings will pay for the cost of the upgrades, and yield over $180,000 of net positive cash flow for the district over term of the program.

CM3 has already conducted an evaluation of the district's facilities.

CM3 is the same company that completed an energy upgrade at the Central Mountain Middle School and Robb Elementary School .

The primary focus, officials say, is to upgrade some inefficient electrical systems and make needed improvements at Bucktail Middle and High School. Energy rates are forecast to increase by 30 to 40 percent in 2010. CM3 is recommending a lighting retrofit to improve classroom conditions, reduce energy usage and replace products that will no longer be manufactured.

CM3 officials said a significant portion of the mechanical systems at the school are at the end of their useful life and are inefficient by today's standards. The program will make major improvements to the occupant comfort and efficiency.