Natural gas prices bust Texas A&M's budget

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Fair use, etc http://www.chron.com/cs/CDA/story.hts/metropolitan/794192 Natural gas prices bust Texas A&M's budget "COLLEGE STATION -- Rising natural gas prices are forcing Texas A&M University to ask the Legislature for help to deal with a projected $18 million budget shortfall.

A&M President Ray Bowen this week asked faculty and staff to help lower ballooning fuel costs by conserving electricity. The university burns natural gas to generate just over 60 percent of the electricity used on campus, the Bryan-College Station Eagle reported in its editions today.

"Every person on campus can help now and in the foreseeable future," Bowen wrote in a Jan. 9 memo, "by continuing to turn off unnecessary lighting, computers, printers and other equipment at the end of the day, lowering thermostats during winter months and eliminating the use of space heaters."

The university budgeted $15.5 million in fiscal year 2001 to buy natural gas. But officials are expecting that by the end of the fiscal year on Aug. 31 they will need an additional $18 million because gas prices now are about double what they anticipated.

"No one that I know of predicted this gas situation," said Chuck Sippial, vice president for administration. "Were hoping we get some relief from the Legislature."

The shortfall started toward the end of fiscal year 2000, when costs rose about $1 million over budget.

If state officials don't come through with help, everyone on campus will pitch in to cover the extra costs, said Bill Krumm, vice president for finance and controller.

"Were taking a little bit of money from everybody in order to keep the lights on," he said. "Everybody's going to help pay for this."

That includes academic and athletic programs, as well as state agencies housed on the A&M campus.

A&M historically has produced most of its own utilities. Sippial said a renovation of the utilities distribution system on campus is expected to be finished by September. The changes will allow the university to purchase all its electricity -- potentially cheaper than producing it -- if deemed necessary."

-- tex (tex@tex.com), January 12, 2001


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