CURRENT ENERGY COST INFORMATION: At this writing, the projected costs for energy (gas and electric) are in a state of flux and subject to major policy changes at the State level that may occur just prior to or shortly after the February Board meeting. All indicators point to substantial utility cost increases during the balance of 2000/2001 and certainly for 2001/2002. The following information looks at the three main educational sites and does not include utility costs for the multitude of rental locations where the utility cost is wrapped in as part of the overall rental agreement.

1999-2000 COST DATA: Gas and electric costs for Santa Rosa, Petaluma and Two Rock was $1,005,000.00. Approximately $710,000.00 was spent for electricity at these three (3) main sites. Gas cost the District $295,000.00 at these sites during 1999-2000.

2000-2001 ESTIMATED COST: At this writing, staff projects an increase over 1999-2000 of at least $275,000.00. The College experienced $100,000.00 in curtailment penalties due to our inability to shut down our operations when PGE requested (Summer and late Fall). As of December 1st, the College has cancelled the curtailment agreement.

The district has realized gas cost increases of fifty percent (50%) since November which are programmed to increase by one hundred percent (100%) by next June. The net increase to the District's 2000/2001 gas budget is anticipated to be $100,000.00.

Base electrical costs increased as of December 1st by ten percent (10%) due to the cancellation of the curtailment agreement. Due to the recent Public Utilities Commission ruling, they increased another nine percent (9%) as of January 5th. At this writing, the net increase to the District's 2000/2001 electrical budget is anticipated to be $75,000.00.

2001-2002 ESTIMATED COST: At this writing, staff is anticipating electrical costs to double over 1999-2000 actual costs. Gas costs are anticipated to increase by fifty percent (50%) over 1999-2000 actual costs. Looking at the three main sites, projected costs are an anticipated to be:

continued.......

Site Location: 1999/00 2000/01 (est) 2001/02 (est)

Santa Rosa $631,000.00 $697,750.00 $1,262,000.00

Petaluma $ 66,000.00 $ 72,750.00 $ 132,000.00

P.S.T.C. $ 13,000.00* $ 14,500.00 $ 52,100.00**

Santa Rosa $269,000.00 $360,000.00 $403,500.00

Petaluma $ 22,000.00 $ 29,500.00 $ 33,000.00

P.S.T.C. $ 4,000.00* $ 5,500.00 $ 25,000.00**

TOTAL $295,000.00 $395,000.00 $461,500.00**

* Includes Two Rock estimate since billing combines gas and electric.

** Projects Two Rock and new Windsor PSTC 1/2 year usage each.

For Budget Year 2001/2002, energy costs (gas and electric) are thus projected to increase by nearly $1 million dollars per year over the 1999/2000 fiscal year. This represents a substantial increase for the College's operating budgets and will erode further the amount of discretionary funds available to the College.