CONCORD – New details are shedding light on the grim results of an almost $50 million energy conservation project geared toward reducing electric bills and improving classroom climate within the Mt. Diablo Unified School District.
MDUSD is currently using more electricity, experiencing a rise in maintenance requests as a result of teacher complaints, and is achieving only a fraction of the associated fee savings promised by Schneider Electric – the contractor that led the design and installation of latest ceiling tiles, lights, HVAC equipment, and thermostat controls throughout the district .
But the Texas multinational denied allegations of fraud, inflated pricing and false claims, claiming that its upgrade work was not chargeable for the disappointing meter readings.
According to the corporate's own data, MDUSD used about 15 million kilowatt hours (kWH) of electricity in September – a rise of 80 to 100% in comparison with rates in July 2019, before Schneider was brought in.
Schneider Electric's Measure J-funded project previously promised that MDUSD's cumulative savings would reach $1.8 million, 80% of annual utility costs, one 12 months after the primary phase of the project was accomplished.
However, in response to Schneider's own numbers presented to the Citizen's Bond Oversight Committee, the volunteer panel charged with holding the county accountable for responsible spending of Measure J, the $150 million bond, the county has initially recorded only 7% in energy savings Voters voted for campus infrastructure improvements and energy system efficiency improvements in 2018.
During the Nov. 14 CBOC meeting, Schneider's representatives claimed that the true problem behind MDUSD's increased electricity consumption is that the district's existing solar PV systems are deteriorating. They reported last week that 38% of the district's solar production was offline – a problem that district staff confirmed was related to contractor SunPower, which filed for bankruptcy earlier this 12 months and cut a whole bunch of jobs.
“At the meter, these savings (achieved by Schneider’s Measure J project) are effectively offset,” said Brandon Bedford, Schneider’s director of operations.
Schneider Electric also denied allegations that it got away with inflated profits, ignored local labor contracts or manipulated utility data to support claims that the multimillion-dollar project will ultimately pay for itself through the energy savings it generates by 2024 – although this doesn’t provide MDUSD with a guarantee or the flexibility to independently confirm their claims.
Superintendent Adam Clark confirmed that MDUSD had opted out of Schneider's “very costly” measurement and verification services, saying in a Nov 12 notes that the district invested that cash in additional HVAC units.
Elliott Feldman, a Schneider Electric program manager, reminded the CBOC that a savings guarantee is entirely on the discretion of the shopper and will not be required under California law. He said MDUSD's decisions in regards to the contract are consistent with those of other school districts they’ve worked with previously.
Instead of providing direct measurement and verification services for the district's total energy use, Schneider Electric calculates the project's energy savings based on metrics equivalent to wattage, lifetime efficiency and each day demand of the brand new equipment installed at MDUSD – essentially comparing each individual LED light bulb and HVAC unit and control panel adapted to the replaced technology.
A snag is emerging with Schneider's Energy Management System (EMS), which helps the district track utility bills and advise on other energy policies: MDUSD's contract only allows for 2 years of access. The district must pay an annual fee of $175,000 to proceed this consulting work.
Dave Johnsen, who supports labor and contract compliance on public projects for a regional nonprofit, asked last week for an in depth breakdown of the savings achieved through the EMS consultation. Without independent verification tools or Schneider's conservation monitoring controls, he fears the projected 20-year savings will drop dramatically if MDUSD chooses to not pay the subscription fee.
Schneider's representatives said last week that they’d no data available to review.
And the corporate did not answer several other questions last week from Johnsen and the CBOC about its controversial $50 million project.
Johnsen questioned how Schneider will save the district money over a 20-year period, a timeframe that goes beyond that California Energy Commission Guidelines for the lifespan of the device itself.
He also criticized Schneider for allocating $13 million, nearly a 3rd of Schneider's total planned savings, for “operations and maintenance costs” equivalent to workforce reductions. Citing an excerpt from Schneider's original project proposal, Johnsen said, “While these efficiencies result in some savings for the district, in many cases these operational savings are not quantifiable or verifiable.”
District staff said none of their 4 maintenance electrician positions have been eliminated, but they hope to resolve Schneider's problems and provides those employees the chance to repair other problems. This current backlog includes service requests from teachers complaining that the newly installed automated thermostats Schneider installed are causing temperature havoc in classrooms.
Linda Ortega, president of the Mt. Diablo Education Association and teachers union, said greater than 70 teacher complaints were filed last 12 months over newly installed equipment funded by Measure J, although there have been hardly any in any respect.
“Suddenly, phew! They came out of the woodwork,” Ortega said. “The district trusts our teachers to take care of our kids, but why can’t they trust us to manage a thermostat?”
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