Students’ energy surcharge fees will be raised from $3 per credit hour to $5 per credit hour for up to 12 hours, but not as a result of the City of Thibodaux’s increased utility rates, according to Michael Naquin, controller and assistant vice president for business affairs.Naquin said that the increase is due to projected utility costs. The energy surcharge fee increase has been approved and will take effect Spring 2006.

“We basically would be running a deficit of about $96,423,” Naquin said. “Once we start running into a deficit, it’s just going to get bigger and bigger. We will be projected to spend more than we take in, so we’d reach some point in time where (we’re) just not paying our bill because (we) don’t have enough money coming in. “

According to Naquin, the University is projecting to collect about $497,000 from students before the increase, and the estimated cost for utilities is approximately $865,000.

“The request was to raise the fee to $5 per credit hour,” Naquin said. “Hopefully that will allow us to be able to pay for the increased cost of the utilities.”

The University requested the increase in the energy surcharge fee at about the same time that the City of Thibodaux decided to increase their utility rates, according to Naquin. The City of Thibodaux’s new utility rates have been approved, and they will be in effect April 1, 2006. Naquin said that the two increases at the same time were coincidental.

“The reason for the rate increase is not specifically because Thibodaux asked for a rate increase in its water, sewage and natural gas,” Naquin said. “I don’t know if it’s going to affect the energy surcharge fee any more.”

The energy surcharge fee, according to Naquin, is only used to pay for 75 percent of the fuel adjustment rate. It is not used to pay for anything else, such as any increase in consumption. The University pays for the total cost of utility consumption and the remaining 25 percent of the fuel adjustment rate. All of the costs of utilities are based on the 1999-2000 fiscal year, according to Naquin.

“We can’t charge for an increase in consumption because it’s all based on five years ago,” Naquin said. “If the utility rate changes, the University won’t be able to use this money (energy surcharge fee) to pay for it. It’s not part of the fuel adjustment .