Procuring and Supplying Energy

• Updated: December 2010
• Primary Contact : Michael Berthelsen

The Energy Management Principles guide University operations in ensuring the University's optimal procurement and management of a continuous, uninterrupted supply of energy. The University's Energy Management department and the Office of Investment and Banking manage the energy procurement for the University of Minnesota. Energy Management provides advice and counsel on energy management and utility infrastructure, and provides utility engineering expertise to support the University's mission of teaching, research and outreach.

Energy Management Principles

Reliability

Uninterrupted energy supplies and delivery systems will be provided to ensure University operations and activities can be conducted.

Sustainability & Environmental Stewardship

1. The University selects fuels and manages operations in a manner meets all government permit restrictions and exceeds industry benchmarks for emissions.
2. The University includes renewable fuels that minimize the final net emissions impact to the environment, where fiscally responsible.
3. The University manages its campuses and facilities in a manner to minimize its overall consumption.

Risk and Cost Management

Energy will be purchased, produced and delivered at a competitive cost while ensuring financial risks are managed. Energy performance requirements include:

1. Procuring fuel and conserving fuel to achieve the lowest possible total cost by:
   1. Utilizing fuel purchasing programs and appropriate related investment techniques to mitigate price volatility, obtain greater control over fuel costs, and increase the availability of fuel priced within budgeted costs.
   2. Developing multiple fuel options that prevent the University from becoming too dependent upon any one fuel or provider.
   3. Implementing energy conservation to achieve and sustain lowest possible cost.
2. Utilizing investments, technology, and equipment to lower energy consumption.
3. Maximizing the life cycle cost of equipment through sound maintenance programs including analysis of maintenace versus replacement.

Coordinate Campuses and departments are responsible to work with the University's Energy Management department and in alignment with the Energy Management Principles on energy decisions. This includes new construction, renovations, recommmissioning and all projects involving primary electric power, heat, cooling water, water or sewer utility needs. The University's Energy Management will provide consultation to determine feasibility, cost, and assess utility requirements for accurate operating costs when developing construction scope.

Continuous, uninterrupted support of the University's utility infrastructure is essential to all University activities, including life-critical operations and highly sensitive research. This policy provides for fiscally responsible procurement and management of energy for all University campuses and installations. This policy implements the commitments of Board of Regents Policy: Sustainability and Energy Efficiency. This policy also outlines Board of Regents expectations for efficient management of energy and provides direction on energy management operations.

There are no procedures associated with this policy.

There are no forms associated with this policy.

Uninterrupted Energy

A highly reliable energy source with a highly reliable distribution system with a goal of zero percent downtime in any given year.

Department Staff

Contact Energy Management for all utility needs including electricity, heat, cooling, water or sewer. Consult with Energy Management on utility needs related to new construction, renovations, or other programs/projects that pertain to energy or utility needs.

Deans, Directors, Department Heads

Communicate this policy and procedure to affected staff, support programs implementing this policy and provide resources for unit to comply with policy.

Energy Management Department

A division of Facilities Management which reports to University Services. Responsible to manage energy from the source to point of use. Responsible for procuring and managing the University's annual energy budget, utility engineering and operations, facility engineering and energy efficiency, utility accounting and billing, and engineering records. Ensure energy availability in emergency/disaster situations.

Office of Investment and Banking

Responsible for managing all cash, investments and debt on behalf of the University; utilize fuel purchasing programs to maximize the overall investment.

Vice President for University Services

Provides resources and support to facilitate the University's compliance with this policy. Serve as the administrative authority for University's facilities, including infrastructure and energy management.

There are no appendices associated with this policy.

There is no FAQ associated with this policy.

• Board of Regents Policy: Sustainability and Energy Efficiency
• University of Minnesota Environment and Sustainability Portal
• Minnesota Pollution Control Agency
• United States Environmental Protection Agency
• United States Department of Energy

Amended:

December 2010 - Comprehensive Review, Title updated to reflect the extent of the policy. Policy now identifies departmental responsibilities related to this policy. Primary contact updated to the Associate Vice President for Facilities Management.

Effective:

September 2005