Monday, October 2, 2000 Fuel prices give schools the shivers

By Gina Thackara TRIBUNE STAFF WRITER Barring snow days and extreme cold that could cause the governor to declare shutdowns, there will be school this winter. But it likely will be expensive to heat the buildings. "I wouldn't doubt that some districts will end up paying double for their fuel this winter," said David Cerra, business manager in the Carbondale Area School District.

That could be the case in the Dunmore School District, where "the problem hasn't been addressed at this time," said a district spokeswoman.

Like many of his counterparts, Mr. Cerra said he tried to hedge against the increases in natural gas prices this summer by buying extra fuel, but timing may torpedo his efforts. The Carbondale district's natural gas contract is up for negotiation in October.

"We're trying to lock in a price, but it's difficult right now because everything's so unstable," Mr. Cerra said. "We're all amazed at how high the prices have gone. School districts might literally pay double this year to heat their buildings."

Districts must decide by Nov. 1 if they want to lock in a price for the rest of the school year or be susceptible to the market. The lower heating oil supplies coincide with a shortage of natural gas that is driving up the price of that energy source. The problem may be made more difficult by weather predictions that call for a colder winter this year than the past three.

Some district business managers did use a little forethought to stave off a classroom heating crisis.

In the Western Wayne district, school officials contracted for several years with a fuel consortium created by Intermediate Unit 19.

"We locked into a fixed rate in June," district Superintendent Lou Zefran said. "We had the option of a fixed rate or a variable rate. This time around, we picked the right one."

The Scranton School District managed to lock in a natural gas price in April to fuel the district's 21 buildings, district business manager Gregg Sunday said.

"We're set for this winter," he said. "We negotiated the price a year before and had the option to continue it this year. By April, when we have to open the contract for bids again, we should have a better idea of where gas prices are going."

The Scranton district also has backup plans if there's a shortage of natural gas.

"And, of course, if things are as rough as they were in 1994, my guess is that governor will order schools closed during the coldest temperatures," Mr. Sunday said.

THE ASSOCIATED PRESS contributed to this report.

http://www.scrantontimes.com/stories/10022000/home/1568.htm

-- Martin Thompson (mthom1927@aol.com), October 02, 2000