Energy costs affecting state budget plans

AUGUSTA – State workers may be spending a lot more time in front of television sets in the months ahead, but not to watch their favorite shows. Gov. John Baldacci wants more teleconferences and less travel as the state feels the pinch of higher energy prices.

“We have done more teleconferencing and we have curtailed state employee travel,” Baldacci said last week. “We are already trying to stretch dollars and not waiting to see how high prices go.”

The governor has a new teleconferencing unit in his Cabinet room and plans to use it to reduce his own travel to meetings. He said there are a number of state and federal agencies that are now equipped with teleconference units.

“We started a lot of this to reduce energy consumption to help the environment,” he said, “It is now going to help us with the budget.”

But even with a reduction in travel, gasoline prices are likely to continue to run about 31 cents a gallon higher than budgeted, said Finance Commissioner Becky Wyke.

“If this price hike continues, we’d be looking at additional costs of $400,000 this year,” Wyke wrote in a memo. “This does not include Public Safety, DOT [Department of Transportation] or the IF&W [Inland Fisheries and Wildlife] hatchery trucks.”

The state police, the largest agency in public safety, is looking at another $400,000 this year for gasoline, said Col. Craig Poulin, chief of the Maine State Police.

“We are still working on a number,” he said,” but we can’t cut down on patrols, cut down on enforcement because of higher gas prices. We have to do what we have to do.”

But, he said, the agency is urging prudent conservation steps. For example troopers on rural patrols who often buy gasoline locally are asked to shop around for the cheapest gas, and to regularly check the air pressure of cruiser tires.

“We are doing what we can, but I know it’s costing us more for gas now and that is going to continue and that is going to be a problem,” Poulin said. “It will take money away from other things that we need, like equipment replacement.”

The largest fleet of vehicles in state government is the 1,400-vehicle central fleet that provides vehicles as needed to most state agencies. As older vehicles have been retired, they have been replaced with more fuel-efficient vehicles, including 19 gas-electric hybrids.

One state vehicle that has not been replaced with a more fuel-efficient model is Baldacci’s SUV. But he said if the new hybrid SUVs meet the safety standards of his state police security detail, he will trade in his gas guzzler.

“I want one,” he said. “If they are making one now, I want one.”

The governor acknowledged it is important for him to set an example by conserving, but said that is very difficult with the demands for meetings, speeches and events. Scheduling several events in an area to reduce travel is a goal, but not always one that is met.

Like homeowners, the state also is looking at significant increases to heat dozens of state facilities. Wyke said the state is expecting costs to be about $400,000 over budget. The state uses a wide range of fuel types in its facilities and expanded the use of biodiesel fuels in some state buildings in Augusta.

“We have not signed a contract for heating fuel,” she wrote, “but [we] are looking to negotiate a clause that would permit us to renegotiate a price if a significant drop should occur.”

Beth Nagusky, chairwoman of the Energy Resources Council, said the state has made a number of conservation efforts in its facilities, including energy audits to determine where insulation was not sufficient to replacing windows and doors with more energy-efficient models.

“And I would urge homeowners to do the same,” she said. “Every dollar you invest in conservation saves two dollars in energy costs.”

The council also is developing an emergency plan to handle any shortages that may occur in the state. The draft plan points out that Maine relies on home heating oil far more than most of the country, with about 80 percent of homes and businesses using No. 2 oil.

The plan indicates there is only about a five-day supply of No. 2 oil in storage tanks across the state. One reason, according to the plan, is the move to just-in-time delivery of most petroleum products.

There is a New England reserve, but the 2-million-barrel stockpile is considered small by planners and unlikely to be much help to Maine.

The plan looks at a number of scenarios that could disrupt supplies, from storms to pipeline or refinery failures. There are no refineries in New England, and while the state has two natural gas pipelines, relatively few homes or businesses use natural gas. The largest use is for generation of electricity.

“We are trying to look at what might happen and what we need to do in an emergency,” Nagusky said. “This is a draft; we still have work to do.”