8 Ways Campus Chargebacks Are Useful

Chris Heinz - February 18, 2014

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A campus chargeback is the allocation of campus-generated utility usage and cost to individual buildings that are served by the “in-house” system. Other names for chargebacks are: allocations, rebillings, or distributions. In essence, the facilities management department is the local utility vendor.

Doing chargebacks can be complicated, so let's look at the benefits. Here are eight ways campus chargebacks are useful.

1. Allocate costs to “general” and “auxiliary” budgets

Often times in higher education, there are multiple budgets. For example, the general and education budget may provide classrooms, while auxiliary budgets might provide dining halls, dormitories, athletic facilities, or federally funded research labs. Usually, activities from auxiliary budgets are self-supporting—they have to pay their own way from the fees they collect. For this reason, it’s important to allocate costs to properly charge them for their use and their costs.

2. ENERGY STAR ratings for individual buildings

ENERGY STAR building ratings are valuable for many reasons. In order to receive a rating on an individual building, you need to know the consumption for the individual building. Unless you have a way to allocate the usage, you can’t answer that question.

3. Mandatory (legislated) energy usage reporting

Legislation by city governments, state governments, and other governing bodies is increasing around the country requiring certain types of buildings to report their energy usage. You can’t report your usage if you don’t know what it is.

4. Measurement & Verification of energy reduction projects

Calculating the measurement and verification of energy savings requires the usage data so you can compare the baseline or the pre-retrofit with the post retrofit.

5. Energy reduction competitions

Competitions like dorm versus dorm for energy reductions are popular on college campuses, but unless you have the energy data, you can’t name a winner.

6. Building energy/sustainability dashboards

Gaining in popularity are also energy or sustainability dashboards that show key performance indicators. Perhaps in kiosks or large monitors in building lobbies, dashboards sometimes show in real-time or near real-time how much energy the building is using.

7. Allocation of line loss (expense and use)

Often the institution needs to account for the total output if they have a central plant that is generating their own electricity. They know how much is being sent to the grid, but the breakdown per individual building is unknown. If there’s line loss or unmetered loads, it needs to be accounted for.

8. Allocation of expenses related to central plant energy generation

Similar to allocating expenses related to central plant energy generation, you expect to see some campuses that have privatized their central energy plant, so for instance, the central heating plant is no longer owned by the institution. Instead, it’s owned by a private company that operates it for a profit. Cost accounting becomes very important in this situation.

Want to learn more about chargebacks and submeters?

ELW-Chargebacks & Utilize Submeters

Topics: Software Features

Chris Heinz

About the Author
Chris Heinz

Chris is Vice President of Human Resources for EnergyCAP, Inc., which helps organizations get value from their utility bills through energy management software. He's an Associate Certified Coach by the International Coach Federation, a Gallup Certified Strengths Coach, and a Certified Professional Life Coach. He also started www.Munyay.com to help people love their life and love their work.

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