Districts already signing up for no-cost opportunity to cut utility costs; more webinars planned

Within days of the announcement of KSBA’s partnership to cut district utility costs through pool purchasing of natural gas, the phone lines were buzzing and by Aug. 1, four districts had signed up.

The Kentucky Gas Aggregation Program (KGAP) involves KSBA and the Louisville-based international energy management firm, Fellon-McCord. KGAP, similar to programs created by school boards associations in Illinois, Iowa, Kansas and Missouri, was created to assist school districts in the procurement of natural gas supplies. There is no cost to districts to participate.

Natural gas makes up about $30 million of non-vehicle fuel costs to Kentucky districts annually. Typically, large customers purchasing through a marketing agent achieve significant savings. Fellon-McCord’s analysis indicates Kentucky districts use about 3 million units (dekatherms) of natural gas annually, and could save up to $1.5 million a year through pool purchasing.

Two more KGAP webinars for superintendents and district finance officers are scheduled for Aug. 10 and Aug. 18. Participants in the first webinar posed questions about how the program will operate, how to sign up and the timeline for participation for the 2011-12 school year.

Under the plan, new natural gas suppliers would be in place for participating districts by Nov. 1. In order to meet that timeframe, districts interested must complete and return by Aug. 22 a KGAP Letter of Authorization to permit Fellon-McCord to provide districts with gas supply choices for review.

To take part in the upcoming webinars, click on either of these links:

(mainList) Wednesday, Aug 10 10:30 – 11 a.m. ET KGAPWebinar #2
(mainList) Thursday, Aug 18 10:30 – 11 a.m. ET KGAPWebinar #3

For more information about KSBA’s KGAP, please call Steve Smith, David Baird or Bill Scott at KSBA at 800-372-2962.

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