ERIC Number: ED242243
Record Type: RIE
Publication Date: 1984-Mar
Reference Count: 0
Financial Planning for Energy Efficiency Investments.
Business Officer, p28-34 Mar 1984
Financing options for energy efficiency investments by colleges are outlined by the Energy Task Force of three higher education associations. It is suggested that alternative financing techniques generate a positive cash flow and allow campuses to implement conservation despite fiscal constraints. Since energy conservation saves money, the savings can be used to offset the cost of improvements. The following financing options are summarized: internal financing, building reserve and replacement funds, bond fund pools, shared savings, municipal leasing, third-party project financing, fund raising, tax-exempt bonds, commercial bank borrowing, and borrowing from endowment. Straight financing potentials for both public and private colleges are addressed. Attention is also directed to reevaluating capital budgeting, establishing internal policy, risk management, and integrating the capital program with operations and maintenance. The financial evaluation of efficiency investments is discussed, with attention to: simple payback period, net present value, return on investment, and cash-flow improvements. Important variables for the financial analysis are also discussed, including term of analysis, energy price escalation factor, base-year savings, and the cost of delay. Twelve energy financing self-assessment questions are also presented. (SW)
Descriptors: Budgeting, Campus Planning, Capital Outlay (for Fixed Assets), Economic Factors, Energy Conservation, Financial Policy, Financial Services, Fund Raising, Higher Education, Investment, Operating Expenses, Private Colleges, School Maintenance, Self Evaluation (Groups), State Colleges
National Association of College and University Business Officers. 1110 Vermont Avenue NW Suite 800, Washington, DC 20005. Tel: 800-462-4916; Tel: 202-861-2500; Fax: 202-861-2583; Web site: http://www.nacubo.org
Publication Type: Collected Works - Serials; Opinion Papers
Education Level: N/A
Authoring Institution: National Association of College and University Business Officers, Washington, DC.
Note: Paper in the Energy Task Force Series on "Financing Campus Energy Conservation Projects," sponsored by the National Association of College and University Business Officers, Association of Physical Plant Administrators of Universities and Colleges, and American Council on Education.