UTC’s sustainability initiatives UTC energy costs* $3.1 million: Total electric cost in 2009* 7.5: Percentage of state appropriations* 23: Percentage increase in electric costs in three yearsSource: UTC
Energy costs are bleeding a cash-strapped UT system, and trustees say TVA needs to cut universities a deal on utility costs if they are going to weather a $100 million budget shortfall in 2012.
“Some of the biggest increases we see in overhead costs are utility costs,” said Doug Horne, chairman of the UT efficiency and effectiveness committee. “We have got to work on it. We are a big institution, and we want TVA to treat us as such. We want a better rate.”
University of Tennessee administrators, with the support the UT board, said they want to meet with Tennessee Valley Authority executives to try to negotiate a lower energy rate.
TVA has 50 large industrial customers and eight federal entities that are under individual contracts and receive power directly from TVA instead of distributors, Mr. Horne said. They include the Oak Ridge National Laboratory in Oak Ridge, Tenn., which is tied to the University of Tennessee. All UT campuses currently are served through local utility companies, he said.