OSU/A&M Regents approve partnership expected to yield substantial savings over the next several year.   MIAMI, Oklahoma — The OSU/A&M Board of Regents approved an extensive energy conservation initiative today during a regularly scheduled meeting at Northeastern A&M in Miami, Oklahoma.   The initiative is expected to potentially save Oklahoma State University and the OSU System more than $30 million over the next seven years according to analysis.   The Regents approved a contract recommended by Oklahoma State University’s administration to retain Energy Education, Inc, (EEI) to implement a sweeping multi-year conservation education program aimed at putting into place standardized best practices and programs to promote responsible energy management among students, administrators, faculty and staff. EEI, based in Wichita Falls, Texas, was founded by OSU alumnus Dr. William Spears 21 years ago.   The company’s proprietary energy conservation program has been used by more than 800 public school districts across the United States resulting in an estimated $1.2 billion in cumulative and verified energy savings, according to the company. OSU and the OSU System will become the first higher education institution to implement EEI’s program. “Rising energy costs and energy price volatility continue to strain operational budgets across our campuses.  OSU has a social as well as economical responsibility to conserve energy every way we can without jeopardizing our educational and research missions,” said OSU System CEO and President David Schmidly. “Energy prices are unlikely to drop significantly in the future, and higher prices cannot be allowed to encumber our educational pursuits. “EEI has a proven track record of helping educational institutions optimize site energy efficiency, allowing them to reserve operational funds once dedicated to energy costs toward educational priorities,” Schmidly said. “Energy conservation should be top-of-mind with everyone. OSU and the System will do our part to be at the forefront of implementing a concentrated energy efficiency and conservation program, which will no doubt allow us to be better stewards of OSU’s financial and natural resources.” The contractual agreement with Energy Education includes an OSU commitment of approximately $1.65 million annually for the first four years and approximately $430,000 annually for the final three years. The contract includes a no-risk guarantee. OSU must save at least the program costs, or Energy Education will pay the difference. But if OSU saves more than EEI has projected, there is no additional cost to OSU. “This is an opportunity to achieve substantial savings with no capital expenditure,” said Dr. David Bosserman, OSU vice president of Administration and Finance. “In year one, EEI’s program is projected to save us nearly $3.2 million in energy costs, for a net savings of almost $1.6 million, or a 96 percent return on investment. For year two, the company projects a savings of $3.5 million, and the net savings to the university will be $1.9 million — for a 118 percent return.” For the duration of the seven year contract Bosserman said OSU expects a savings of $30 million, with a net savings of $22.6 million. OSU began negotiations with Energy Education following a request for proposals in May. The company was chosen due to its success with public schools and because of the comprehensiveness of the services, according to Bosserman. A centerpiece of the initiative will include naming and training energy education managers at every OSU campus who will collaborate with EEI’s engineers, energy managers, HVAC specialists and other professionals to bring about the most effective and efficient use of energy in all university buildings and systems. “This is a significant opportunity for us,” said Randy Hoff, EEI’s President–Operations Division. “We appreciate the confidence OSU has in our capabilities and we look forward to a collaborative effort over the next several years to institute a system-wide energy conservation program incorporating energy and environmental best practices.” Retaining Energy Education is a major step in an initiative to increase natural resources and energy conservation throughout the OSU System. Under President Schmidly’s direction, OSU is forming a high-level task force to explore the broader adoption of sustainable and green initiatives for campus operations and construction. Chairman of the OSU/A&M Board of Regents, Joe Hall, said, “We want to always do whatever we can to wisely use our financial and natural resources throughout the OSU System.  Energy is, of course, a major cost item.  We believe this initiative could help contain energy costs and, at the same time, create a greater awareness of the importance of conservation.” Energy Education, Inc. helps educational institutions and churches best use their financial and natural resources through its energy conservation strategies and practices.  In 2004, OSU named its College of Business after Dr. Spears in honor of a major gift.