2. 2 Approved by the Board of Regents in 2006 to support rising energy prices due to double digit increases in utility rates and in lieu of an increase in designated tuition. Utility % Rate Change 20032004200520064 Yr Average Natural Gas 43.95%8.11%16.11%30.70%24.72% Electricity21.9%-8.37%0.36%9.57%5.87% Water12.29%8.67%17.14%11.62%12.43%

3. 3 Fee Rate was set at $45 for 2006-2007 Lowered to $35 in 2007-2008 No rate changes since Fall 2007. Energy rates are tied to commodity market with wide price swings in times of shortage or over supply - volatile and somewhat unpredictable. Also affected by energy policy changes. Fee Rate was set at $45 for 2006-2007 Lowered to $35 in 2007-2008 No rate changes since Fall 2007. Energy rates are tied to commodity market with wide price swings in times of shortage or over supply - volatile and somewhat unpredictable. Also affected by energy policy changes.

4. 4 Energy Fee RAC = Refiners’ Acquisition Cost

5. 5 Utility Rates Average FY09 Thermal Energy Rates: Steam/Hot Water = $13.82/MMBTU, Chillwater = $0.10/Ton-Hour FY08 Purchased Utilities. Electricity 63% $ 6,116,130 Natural Gas 27% $ 2,557,800 Water 10% $ 961,430

6. 6 Going forward utility costs for new facilities should be covered by designated tuition. If continuation of the fee is requested, can the fee be downward adjusted? Going forward utility costs for new facilities should be covered by designated tuition. If continuation of the fee is requested, can the fee be downward adjusted?

7. 7 FY 2006FY 2007FY 2008FY 2009FY 2010 Designated Tuition $7,531,668$6,743,343 $8,234,500 Energy Fee02,874,1322,259,3002,234,9022,234,000 F&A (Overhead from Grants & Contracts) 0000300,000 TOTAL$7,531,668$9,617,4759,002,6438,978,24510,768,500 Actual Expenditures Prior Year Carryforward 583,888 Cumulative Variance 583,888 4,740

8. 8 Square Footage and Energy Use Square Footage and Energy Use (E&G and Non-E&G)

9. 9 E&G Cost and Square Feet

10. 10 Cost Reduction / Avoidance Measures RecurringAmount 1604 Energy Performance Contract$ 346,500 Large Volume Natural Gas Discount225,700 ITC Energy Performance Contract192,600 New Utility Rate Structure30,200 Variable Frequency Drive Retrofits – JPL14,400 Lighting Retrofits – Student Housing 4,000 TOTAL$ 813,400 One-TimeAmount Peak Demand Limiting – North Thermal Energy Plant$ 74,000 HVAC Setback Thermostats48,000 Utility Billing Audits – Rates, Meter Readings, Faulty Meters43,300 TOTAL$ 165,300

11. 11 Potential Future Cost Reduction Initiatives – Under Evaluation   Retrofit Campus Buildings with HVAC and Lighting Motion Sensor Technology   Implement Monterey Building Energy Audit Project recommendations, including but not limited to:   Lighting efficiency upgrades   Occupancy sensors   Removal of overhead doors   Temperature Setbacks   Variable Frequency Drives   Reclaim blowdown water for irrigation at North and South Thermal Energy Plants   Retrofit Campus Buildings with HVAC and Lighting Motion Sensor Technology   Implement Monterey Building Energy Audit Project recommendations, including but not limited to:   Lighting efficiency upgrades   Occupancy sensors   Removal of overhead doors   Temperature Setbacks   Variable Frequency Drives   Reclaim blowdown water for irrigation at North and South Thermal Energy Plants

12. 12 Potential Cost Reduction Initiatives, Continued   Optimize energy efficiency through:   Retro-commissioning of tri-Campus buildings   Implement Campus-Wide Energy Awareness Program   Implement HVAC temperature set point policy (Summer: 78 ; Winter: 72)   Implement Preventative Maintenance Program (Thermography to Identify Inefficiency, Temperature Sensor Calibration, Ensure Efficient Operations)   Implement Energy Audit Program   Install Complete Utility Metering to Identify Consumption and Correct Inefficiency   Optimize energy efficiency through:   Retro-commissioning of tri-Campus buildings   Implement Campus-Wide Energy Awareness Program   Implement HVAC temperature set point policy (Summer: 78 ; Winter: 72)   Implement Preventative Maintenance Program (Thermography to Identify Inefficiency, Temperature Sensor Calibration, Ensure Efficient Operations)   Implement Energy Audit Program   Install Complete Utility Metering to Identify Consumption and Correct Inefficiency

13. 13 Analysis conducted to determine the appropriate Energy fee rate based on: Utility consumption of baseline facilities   Baseline facilities = those online in FY 2006 (when the fee was first assessed) Estimated utility rate increases; and Recommendation - fee should be reduced by to $28.50 effective Fall 2010 Analysis conducted to determine the appropriate Energy fee rate based on: Utility consumption of baseline facilities   Baseline facilities = those online in FY 2006 (when the fee was first assessed) Estimated utility rate increases; and Recommendation - fee should be reduced by to $28.50 effective Fall 2010

14. 14 FY 2010Proposed FY 2011 Proposed FY 2012 Designated Tuition$8,234,500$9,215,000 (+980,500) $9,615,000 (+400,000) Energy Fee2,234,0001,835,000 (-399,000) 1,835,000 F&A (Overhead from Grants & Contracts) 300,000400,000 (+100,000) 400,000 TOTAL BUDGET10,768,50011,450,00011,850,000 Actual / Projected Expenditures Projected (+20% inc) Projected (+8% inc) Projected (+3.5% inc)