Collegiate Times

With the constant construction and expansion of the university, Virginia Tech is pushing its utility capabilities to extremes.

Inadequate infrastructure limits university planned growth and has the potential to pass additional costs on to students.

According to the annual facilities evaluation issued by Bill Elvey, the assistant vice president for facilities, there is a major concern that the utility distribution system is reaching maximum capacity is several areas.

?With the amount of construction that is planned, not only the electric, but steam utilities are under question,? said Bob Dellinger, senior electrical engineer.

Ben Myers, utilities department head said the university has been lucky in the past.

?The growth that is occurring in the life sciences corridor is the farthest away from the existing steam plant,? he said. ?We have been very fortunate for the mild winters the past few years and the temporary boiler near Wallace Hall hasn?t been leaned on.? The university?s steam system is used for heating, hot water and in dinning halls for cooking. The temporary boiler was installed in 2005 to boost pressure in the event of severe weather conditions and is only a stopgap until a permanent solution can be approved.

?We?ve been conducting studies and plans to begin corrective measures are already in the works,? Myers said. ?The university has it as a top priority going into this past fiscal year and we are going forward.?

The university will also encounter budgetary increases as the current American Electric Power contract expires at the end of the June 2007. The annual report estimates that Virginia Tech will experience a 60% increase in the cost of electricity. ?60 percent is an extreme estimate but the cost will increase considerably even when the university gets a new contract,? Myers said.

The previous contract with AEP was signed in 1997 and reflects a more regulated electric financial market.

?The electric industry is attempting to deregulate the whole-sale market, while the state of Virginia has established rates on the retail. We are a victim of supply and demand and are stuck in the middle of a market in flux and established rates,? Myers said. AEP did not meet the renewal deadline and the utilities division will start to look for cost-based contracts within the month to have in place by the June expiration.

According to the university board of visitors meeting minutes from June of 2006, the internal budget for all operations concerning the 2006-2007 fiscal year is $900.6 million. This number already incorporates a $19.1 million growth projection in auxiliary expenses. Auxiliary expenses include the electric service system, residence hall rates, parking fees, telecommunication fees and additional university services.

?The budget incorporates revenue from student fees, tuition, the state of Virginia, grants and so many other sources that it is an extremely complicated question to answer if specific increases will have effects on undergraduate expenses,? said Mark Owczarski, university spokesman.

According to the BOV minutes, the total capital budget uses capital outlay expenses in the following order: state support, bond proceeds and then non-general funds. The southwest campus heating and cooling system represents 2.75 million dollars from the non-general funds and is a part of the Educational and General Capital Projects account.

?The capital budget and the operating budget are different accounts but they put pressure on each other,? Myers said.