By Tom Brennan
Special contributor

The high cost of heating homes has been in the headlines all winter. This has been particularly difficult for senior citizens and others on fixed or limited incomes.

Parishioners who have seen their own heating bills more than double from last winter should also understand that as a church we also face higher costs.

Imagine what these rising natural gas costs mean to the Archdiocese of Chicago as it heats churches, rectories, convents, schools and other parish buildings.

The average parish complex uses as much natural gas as 45 to 50 average-size homes. When combined, all archdiocesan buildings use about the same amount of natural gas as 21,000 homes. The spike in gas costs has a large impact on archdiocesan operations.

What is the archdiocese doing to manage such utility cost hikes?

Because gas and electric utility costs are the second-largest expense for a parish after labor costs, we have been working together to save money in this area for years.

Since 1987, all parishes, schools, seminaries and archdiocesan agencies have joined together to buy gas. Our combined purchasing power allows us to purchase gas more cheaply than any parish could alone. Two years ago we renegotiated our gas-purchasing agreement with Enron, after comparing their terms with other suppliers.

Because the archdiocese buys gas as a group we are able to protect ourselves from some of the largest spikes in gas prices by making purchases on the futures market and locking in prices. While this allows us to lessen the impact of price swings, we are still paying prices that are significantly higher than last year.

For the last two years we have enrolled all parishes in a budget payment plan which allows each parish to pay its utility costs in 12 monthly installments. When costs increase, like this winter, the parish can spread the costs over several months.

As part of our budget program, parishes also receive “extreme weather protection” in which they pay for utility usage that falls within a range of 95 to 105 percent of a five-year baseline. When abnormally cold weather pushes usage above that mark, we receive a rebate to cover the extra cost.

During 1999 and 2000, the archdiocese sponsored an energy audit program in which parishes and agencies could review their systems to see if it made sense to replace lights, boilers or other equipment to save gas or electricity. As a result, 254 locations undertook $21.5 million in energy savings projects.

These projects included the installation of energy efficient lightiing in 342 buildings, the replacement or upgrading of 104 boilers as well as other projects to upgrade windows, doors and air-conditioning systems.

Because of these projects we will be saving more than $1.9 million per year in utility costs beginning in 2001.

To put this in context, the natural gas we are saving each year would be enough to heat almost 650 homes; the electricity saved could power more than 3,400 homes. In addition, many of our buildings now have improved lighting and mechanical systems.

Other ways that we save utility costs include making sure all eligible schools are enrolled in Commonwealth Edison’s Student Power 2000 program.

This program gives a 10 percent discount on electric bills to schools. This program saved us over $1 million last year. Additionally, we also examine utility tariffs and seek other savings opportunities. During the current year taking advantage of these other programs will save parishes and agencies of the Archdiocese over $1.25 million.

The archdiocese has been very active in managing its utility expenses. Unfortunately even with our efforts we will still feel the impact of the unprecedented increase in natural gas costs. For the current heating year that will end in April, we will see natural gas costs increase between 60 to 70 percent over last year.

We have asked the leaders of our parishes and schools to review their budgets and establish a plan for paying the adjusted gas bill when it is received sometime around June of this year. We trust the continued generosity of our parishioners and school families will make it possible to pay these unexpected costs.

Brennan is director of Financial Services for the Archdiocese of Chicago.