Chapter One

Energy Consumption Profile

The State of Connecticut uses energy for heating, cooling, lighting, and the operation of equipment including motor vehicles. It routinely purchases:

• electricity;
• natural gas;
• several types of heating oil;
• diesel;
• propane; and
• gasoline.

A few state agencies also use alternative fuel sources (e.g., solar panels and fuel cells), and a number of facilities in the Hartford area participate in a district heating and cooling system. A couple of state agencies have on-site generating capabilities.

There is no single source of information on the total amount of energy consumed by the state and the total dollars spent annually on energy.

Several entities compile information about state government energy consumption levels and expenditures, but each collects the data differently. The major information sources are:

Based on program review committee staff analysis of data available from these sources, it appears in FY 02, the state of Connecticut spent $98 million on energy-related items for government operations. This represented 1 percent of the state's total budget.

Figure I-1 shows total energy-related General Fund expenditures by category of spending for state fiscal year 1996 through state fiscal year 2002. The figure reflects data from the Office of the Comptroller, using the energy-related expense categories defined in the State Accounting Manual.¹

Most state agencies that are major energy consumers have 24-hour-a-day operations (e.g., dormitories, science labs, etc.). The top two consumers in FY 02 were the University of Connecticut and the Department of Correction.

Table I-1 lists the combined energy-related expenditures for agencies spending $1 million or more in state FY 02 (using the same database represented in Figure I-1). Costs for facilities under the management of the Department of Public Works (DPW) are charged to DPW rather than the agency occupying the space.

As shown in Figure I-2, energy-related spending went down in FY 02. This reversed the trend from FY 99 to FY 01 when expenditures increased annually (even adjusted for inflation) after several years of decreases. (Throughout the same period, total state general budget expenditures went up every year.) State energy-related expenditures in recent years reflect a combination of changes in price and usage.

The total amount of energy consumed annually by the state since FY 96 was not available. However, annual consumption data for state facilities are collected and summarized by the Office of Policy and Management.²

Annual energy-related expenditures for state facilities, also displayed in Figure I-2, represented nearly 90 percent of total energy spending. The pattern of spending for facilities mirrored the state's total energy spending, but changed at slightly different rates. From state FY 96 to FY 02, total energy expenditures in actual dollars rose 12 percent, while facility expenditures rose 10 percent. (Adjusted for inflation, expenditures decreased 2 percent and 4 percent respectively.)

Figure I-3 shows the amount of energy consumed annually by state facilities from FY 96 through FY 02, using a standard unit of measurement -- the Btu.³ In recent years, state facilities have used approximately 6 trillion Btu annually. (In 1999, the most recent year of data available, combined energy consumption for all customer sectors in Connecticut was 839 trillion Btu.⁴)

Consumption levels for state facilities declined last year after a three-year period of annual growth. The amount of energy consumed in FY 02 was the same as in FY 00 and FY 97. Fluctuations in usage reflect changes in the amount of space occupied by the state,⁵ variances in data reporting by individual agencies, and the effects of energy efficiency projects.

The state of Connecticut has taken steps to reduce its energy consumption using a combination of conservation and efficiency measures. (Chapters Two and Three contain information about specific activities that have been undertaken.) Total state energy use would be higher today, if no energy-reduction steps had been taken.

Figure I-4 displays state facility expenditures in terms of dollars spent per million Btu (Mmbtu) from FY 96 through FY 02. Overall, the unit cost increased 22 percent, but only 7 percent when adjusted for inflation. During this period, FY 99 was the only year when the average cost per Mmbtu declined noticeably from the previous year.

Looking back farther, in FY 90, the facilities in the database spent $59.3 million for 6.6 trillion Mmbtu of energy. In FY 02, expenditures totaled $84.9 million for 6.4 trillion Mmbtu.

A key difference between the two time periods is the type of energy consumed. The amount of No. 4 and No. 6 oil purchased declined 90 percent, while the quantity of natural gas consumed tripled. The amount of electricity used grew 37 percent.

¹ "Util" is the "Utility Services" code that allows agencies to combine all expenditures for utility services into a single category rather than separating the charges out. The Department of Transportation (DOT), the University of Connecticut Health Center, and the Judicial Department are the only large energy consumers that use this category to report the bulk of their expenditures.

"MtrVeh" is the "Motor Vehicle Supplies" code, which includes a variety of items for maintenance of vehicles as well as fuel to operate them. The numbers for "MtrVeh" in Figure I-1 are an estimate of expenditures for unleaded gasoline and diesel fuel, based on program review committee staff analysis of information from the Departments of Transportation and Administrative Services regarding quantities consumed and prices paid in recent years for those items.

² The Monthly Consumption Monitoring Database tracks facility-related energy use and expenditures for heating, cooling, and electricity, as reported by budgeted agencies. (It does not include items such as highway lighting and gasoline.) Use of the database for comparisons over time must be done carefully. Facilities may open or close, and in a given year, one or more agencies may not submit data for every month. Appendix A contains a detailed description of the database and a year by year summary of consumption levels since FY 90.

³ Btu is "British Thermal Unit," a standard unit for measuring heat energy in a fuel source. Specifically, it is the amount of heat needed to raise the temperature of one pound of water by 1 degree Fahrenheit (F) at or near 39.2^oF.

⁴ U.S. Department of Energy, Energy Information Administration, Annual Energy Review 2000 (August 2001), Table 1.6 State-Level Energy Consumption, Expenditures, and Prices, p. 15.

⁵ According to the Recommended Statewide Capital and Facilities Plan 2002-2006 (p. 3), in FY 85, the state owned 40 million square feet of space and leased another 3 million square feet. In FY 95, it owned 47 million square feet and leased 3 million. By FY 00, the state owned 51 million square feet and leased 2.6 million square feet.