Savings in maintenance manpower has been maintained. Mechanical savings were established at the beginning. Mr. Galatz said a few meetings ago we talked about the rising costs of energy this year and how it is impacting us. Mr. Arnold said the District should try to lock in a long term rate with the gas supplier to try and get relief from spikes, if possible. Precision maintains the equipment and scheduling, and it has been fine tuned a few years in advance of the current energy increase.
Savings is based on a usage baseline.
As things change we can relook at cogeneration. When we looked at that before it was not prudent, and it turned out to be a good choice. Other than that there is not much to do, as this is a supply and demand situation and we are all at the mercy of that. Mr. Lites asked if cogeneration would make sense for us. Mr. Arnold replied we should look at alternative suppliers that would offer more long term rates that are locked in.