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UHS utility costs may jump 50 percent

Bids will be reviewed over the next two weeks

By Portia-Elaine Gant
Senior Staff Writer

Along with rises in tuition and other fees, the University expects that utility bills for the UH System could increase by 50 percent when the System's contract with Reliant Energy expires in May.

"Our utility bills (at UH) are about $13 million a year. We're thinking that will go up to about $19.5 million," Dave Irvin, associate vice chancellor for plant operations, said.

The University received bids Tuesday from several utility companies and hopes to have a recommendation prepared within two weeks, said Diane Murphy, assistant vice president for Student Affairs.

"Last August, the indications were that it would be a 40 to 50 percent increase," Murphy said. However, she said that some newer estimates from plant operations predict a 25 to 30 percent increase.

Irvin attributed the increase to timing.

"When energy was deregulated two years ago, we put our electrical contract out for bid, and we included all of the universities in the UH System so we could maximize our volume. We were very lucky about when we timed it," Irvin said. "Gas prices have gone up dramatically, though, as have electrical rates. We're going to have to pay more no matter who we are with."

Although there will be an increase, the number of companies bidding -- likely between four and six -- should hold down the price, Irvin said.

Regardless, students will feel some of the burden of the increase, Vice President for Student Affairs Elwyn C. Lee said, pointing to the Campus Recreation and Wellness Center and campus housing as specific areas where increased costs may be passed on to students.

"It's just like in your household -- if it goes up 40 percent, you can expect what will happen," Lee said.

But Murphy was more optimistic, saying she expects a minimal affect on students.

"For housing, we generally go up 3 percent a year to cover some deferred maintenance. This year, the total 3 percent will be dedicated to the increase in utilities," Murphy said. "I don't see anything more than a two- or four-dollar increase in the recreation center fee."
 

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