By playing the energy markets, Middletown schools have saved more than $260,000 in gas and electricity bills since 2009. 

Figures presented recently to the School Committee showed the School Department paid about $131,500 less than the market rate for gas and $135,000 less for electricity, working with consultants SilentSherpa and using a mix of short- and longer-term utility contracts. 

School Facilities Director Ed Collins said the district doesn’t always win on a month-to-month basis, but over a four-year span, the results speak for themselves. The Saunderstown-based consulting firm is paid about $10,000 a year for its services, Collins said. 

“We call it ‘cost avoidance,’ because the money isn’t actually in the budget, but it’s been a big win for us,” Collins said. “I think for a lot of people, there’s an assumption that the price of utilities is always going to go up and that’s why they lock in longer-term contracts, but if you play it right, the savings are there.” 

When he joined the Middletown School Department in 2005, Collins suggested avoiding locking into long-term utility contracts, a strategy employed by the Central Falls schools, where he previously had worked. 

Superintendent Rosemarie K. Kraeger said she initially was hesitant about the idea, but gave Collins the go-ahead — something she said this week she hasn’t regretted since. 

“Based on what they did in Central Falls, Ed took the ball and ran with it,” Kraeger said. “It’s a real success story for us.” 

Collins said the district’s facilities — including four schools and Oliphant administration building — currently use about 2.6 million kilowatts of electricity a year and 200,000 therms of gas. The biggest consumer is Gaudet Middle School, the district’s largest school building. It’s also the only school open almost yearround, as is the administration building on Oliphant Lane. 

Under its current contracts, Middletown schools pay 6½ cents per kilowatt of electricity and 59 cents per therm of gas. “We do everything we can to save energy and gas, but we’re also talking about buildings that were built 40, 50 years ago,” Collins said. “When you look at our usage, if you can save a dollar a therm or a few cents per kilowatt, that’s big money.” 

The School Department’s gas contract is set to expire in June, with the electricity contract a month later. 

Collins said the plan is for the School Department to enter the market again and see if savings can be found. Should the cost of electricity appear to be on the upswing, Collins said the School Department would go for shorter, month-to-month contracts until the market improved. 

During the contracting process, the school buildings are never at risk of losing electricity or gas service, Collins said. The utility contracts are with the electricity and natural gas suppliers. National Grid remains the delivery company for both electricity and gas. 

“If you look at where the numbers are, the cost of electricity is the highest it’s been in a while, but we’ve paid less this year than we have over the past five years,” Collins said. “Whenever you’re in the market, it can be very volatile and a long-term contract is a lot less work and gives you peace of mind. Still, we’re looking at saving every penny we can and it makes sense for us.”