OPS seeing positive results one year into its energy project

Dec. 2—One year into its energy project overhaul Owensboro Public Schools has seen a savings of $504,156.

That amount exceeds the forecasted savings for the first year of the project, which was $445,658 — an amount that was guaranteed by the firm in charge of the overhaul. The guaranteed amount of savings for the first year is the cost of the district's first bond payment for the project.

The engineering corporation, CMTA Inc, handled the project, backed with a guarantee that if OPS did not see savings advertised, they would make the bond payments for them.

OPS began looking at an energy savings project when Owensboro Municipal Utilities informed the district they would begin raising its rates in 2015.

According to John David Sandefur, OPS chief financial officer, 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.

Between the 2018-19 school year and the 2020-21 school year, the district was facing an 11.5% increase in rates; an increase that was expected to continue through the phase-in. Previously, the district reported decreasing energy consumption each year prior to that, and costs continued to rise as a result of these increases.

By the end of the 10-year phase-in, the district was looking at a $1-million increase in costs.

The school system officially began working on the project in 2020. The total upfront cost of the project was $13.415 million.

The 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included changing all light fixtures across the district to LED, replacing aged HVAC equipment, upgrading and replacing outdated plumbing, and installing solar panels on seven of its buildings.

CMTA guaranteed that the district will recoup at least $11,693,000 over 20 years, which was the life of the bond that was issued to cover the cost of the project. CMTA also estimated that the district will see a savings of $1.1 million just in maintenance costs alone.

Sandefur said several factors will cause savings to vary in years to come.

"During our first year, the temperature controls were still being calibrated," he said. "Also, we were virtual for much of the year, so activity in the buildings was down compared to a normal year."

Still, the district earned savings of $439,216 for electric; $13,258 for natural gas; $11,168 for water; and $40,514 for operation and maintenance.

Chris Bozarth, OPS director of maintenance, said next year will be the "true test" of the amount of savings in energy costs for the district.

Right now the numbers and the data look great, he said.

"I expect the data to be equally as good, or a little better," he said. "We won't know until we get through this year, and see what having over 6,000 people in our buildings 187 days looks like. That will make a big difference."

The equipment itself is all new and running well, he said, with systems having less down time, and thus providing better learning environments for students. The solar panels are "virtually maintenance free," and the new HVAC systems have been beneficial, especially during the pandemic.

This project was realized pre-pandemic.

Many school systems have spent the last year retrofitting their units with treatment systems that create more fresh, clean indoor air. OPS was ahead of the curve in that regard, because they already had those systems installed through the energy project.

"We didn't necessarily install them at that time for that reason, but it has definitely been a dual benefit," Bozarth said.

Bobbie Hayse, bhayse@messenger-inquirer.com, 270-691-7315