Converting to electric heat earns big savings for Kansas City school district
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| Converting facilities like Wyandotte High school from gas to electric heat helped Kansas City, Kan., Public School District to save thousands of dollars in annual operating costs. (Photo courtesy of KCKPS.) |
A partnership between the Kansas City, Kan., Public School District and the Kansas City Board of Public Utilities saved the school district more than $300,000 in annual operating costs and made classrooms a more comfortable place to learn.
The savings—from a combination of energy efficiency measures and replacing natural gas heaters with electric units—may explain why the utility is doing less selling but writing more orders these days, according to Economic Development and Retail Services Director George Powell. "Customers are just moving in that direction, and we are doing everything we can to make electric service more economical," he said.
Special rate, rebate, technical assistance persuade schools to switch
That attention to customer service is evident in the utility's partnership with the school district. In 2000, Kansas City voters overwhelmingly approved a $120 million bond issue to air condition schools, improve technology and make other upgrades to schools and public libraries. Understandably concerned about how the improvements would impact its 15- to 17-MW load, the school district approached BPU for advice.
While discussing a variety of energy efficiency options to help manage the load, Powell learned that the district planned to replace some old heating units. "Gas was their first idea," he recalled. "It's the most common in this area, and the initial cost is cheaper. Operating costs are higher, though, especially because a school district isn't going to be as sophisticated about purchasing natural gas as, say, a large industrial user."
The utility's answer was to offer a special contract heating rate, consolidated billing, an incentive for using electric heat and technical assistance for energy efficiency measures. In return, the school district would replace gas heaters with electric units wherever feasible.
The heating rate was based on character of use—the way each school used electricity. This method allowed for the fact that some buildings still heated either partially or entirely with natural gas. On the consolidated billing schedule, the district pays a flat rate for electricity 11 months a year. In the twelfth month, BPU rebates the schools money saved by heating with electricity instead of natural gas. The seven-year billing agreement is now in its third year, after which the school district has the option to renew.
Efficiency measures make most of economical heating source
The improvement project began at the same time as the billing agreement, and BPU's recommendations have helped the school district maximize its energy savings. Schools, some built in the 1930s and '40s, increased insulation, resealed or replaced windows and doors, tightened vestibules and atriums, incorporated temporary classrooms into main building structures and improved lighting. BPU helped design task-appropriate lighting for shop and maintenance facilities and replaced transformers at some schools.
And, of course, electric heaters replaced natural gas units. The type of unit depended on the building design, with boilers, VAV boxes, geothermal heat pumps and resistant heating systems all pressed into service. "They didn't replace gas units that still had life, but most of the gas-heated schools have backup systems," said Powell. "Some installed electric heat for backup but ended up using the gas for backup instead."
More customers discover cost-effective electric heat
The school district isn't BPU's only large customer to embrace the advantages of electric heat. The Nebraska Furniture Mart, a home furnishings retailer, recently opened an all-electric 712,000 sq. ft. store in the area. Great Wolf Lodge, Kansas City's new indoor water park and resort, chose electricity to heat its pools, spa facilities and guest and conference rooms.
A rate revision just approved by the BPU directors will make the utility's rates even more favorable for high-end users. "We've had interest from chains like McDonald's, Sonic and Hampton Inns," Powell said. "Those can be difficult sales because there are so many layers of administration, but they are coming to us because they know electricity is a cost-effective alternative."
The combination of great rates and great service has been instrumental in creating partnerships that benefit both BPU and its customers. Like other Kansas electric providers, the utility experiences its highest electricity demand during the summer cooling season. During the winter, BPU has far greater capacity than it can typically sell. By partnering with large users, BPU can sell excess energy at off-peak rates that would otherwise go unused. "Any collaboration that helps us promote energy efficiency using electricity and helps our customers do business more effectively is a win-win situation for the community," Powell declared.
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