Rising Cost of Energy and How it Affects our Campuses

June 9, 2006 -- Yes, you may be paying over $3 per gallon for gasoline and it certainly is affecting our individual pocketbooks. But have you thought about how rising costs of all energy products affects our business of campus conferencing, and our campuses in general? Prices on coal and natural gas have gone up, in some places, 91 percent in the past several years. The cost of public transportation has increased so much at the University of Massachusetts at Amherst that they have introduced a $10 fee increase for students. Kansas State University is predicting a $2 million increase for natural gas and electricity. Natural gas has risen to $6.30 compared to $5.15 a year ago. According to USA Today (April 21, 2006), Americans have curbed their gas use and plan to travel less.

Rising costs mean higher prices from service providers on campuses, requests for legislative support to offset increases, increases in tuition or reduction in services. For conference operations, we may be asked to raise more revenue to help cover campus overhead. It also might mean less participation in some conferences and camps if consumers are feeling the crunch.

Are there other alternative ways campuses can address this problem?

The University of Iowa now uses fiber (oat hulls) in place of coal in one of its two power plants which saved them about $500,000 on the cost of fuel this year. Saint Norbert College in Green Bay, Wisconsin states that conservation tactics helped it to contain its energy costs, even with rising prices. Some K-12 schools have cancelled Friday classes, particularly in rural areas. The travel industry has responded by incentives to hit the road, anything from $20 ethanol vouchers to $10 per car-engine cylinder at bed-and-breakfasts.

Implication: Be prepared if and when you are increased revenue by also suggesting ways to curb energy usage.

http://chronicle.com/weekly/v51/i37/37a02301.htm:

http://chronicle.com/weekly/v52/i16/16a02001.htm:

http://www2.ljworld.com/news/2006/may/19/energy_costs_campus_crisis/?city_local:

http://chronicle.com/weekly/v52/i34/34b02801.htm:

USA Today, April 21, 2006, “Travel industry trots out driver incentives.”

Back to CSE News Page
Back to CSE Main Page

For more information, please contact
Sheila Atwood-Couture at
(307) 766-5641 or satwood@uwyo.edu.

Rising Cost of Energy and How it Affects our Campuses

Quick Links

Outreach School