In summer 2002, the energy surcharge fee for students was discontinued due to decreasing local electrical and natural gas rates. However, the fee was reinstated in fall 2003 due to the uncertainty of the energy market and is still in effect today, according to Mike Naquin, controller and assistant vice president for business affairs. In a meeting with the finance committee in June 2004, the minutes stated that “based upon the staff analysis of the utility data for the current fiscal year and in consideration of the current climate for energy costs, the need for continuation of the surcharge is evident.”
There was no energy surcharge fee for three consecutive semesters, but Naquin said that the energy surcharge fee is determined by the cost of utilities.
“If utility costs increase, we will make adjustments to the energy surcharge fee,” Naquin said. “As the cost for fuel increases, so does the utility bill. Ever since 2003, 2004, utilities have just continued to skyrocket.”
According to Naquin, the University has to monitor the energy and fuel costs in order to determine the energy surcharge.
“We look at what the projections for fuel are in the future and base that on fuel adjustments,” Naquin said. “If it looks like it’s going to be the same or go up, then I think the energy surcharge is going to stay. If the fuel adjustments go down, then we’ll make the necessary adjustments.”
Naquin said that hurricanes that have occurred in the past, including Hurricanes Ivan and Katrina, have had an effect on the cost of fuel, which affects the cost of utilities.
“Look at what’s happening with all of the gas and oil production out of the Gulf of Mexico,” Naquin said. “Now with decreased gas production, gas (prices are) going to shoot up. It’s a never-ending cycle.”
There are a few guidelines for the energy surcharge fee that were stipulated in the Council of Student Body Presidents Resolution. Increases in utility costs attributable to increases in energy consumption would not be recoverable. The surcharge excludes auxiliary cost increases and is to be assigned on a student credit hour basis, not on a headcount. Students are currently paying $3 per credit hour for the energy surcharge.
The surcharge revenue is to be handled as restricted funds with appropriate accounting maintained. Quarterly reports are to be provided. The Surcharge would decrease if energy costs decrease and should be subject to a three-year sunset. Naquin also said that the university is only allowed to charge the students 75 percent of the actual costs of the utilities.
Naquin said that students are notified of any adjustments made to the surcharge fee through the Nicholls Web site, KNSU and The Nicholls Worth.
