Electricity: Still too Soon to See Backlash
Of Soaring Energy Rates
There’s not much they can do about it, so local construction companies are just learning to live with higher electricity costs, officials of several companies said.
Doug Barnhart, CEO of Douglas E. Barnhart Inc., said where his company has felt the rising energy costs is in its main office, where the electricity bill went up $4,500 a month.
“We also have one project where we’re testing the heating and cooling systems where the bill went up $12,000 a month,” Barnhart said. “What will happen if these energy prices stay high is that the cost of construction will go up.”
He also predicted building owners will be more interested in having energy management systems installed if electricity remains expensive.
For now, builders will have to absorb the higher energy costs on projects because they bid their jobs with a guaranteed price, Barnhart said.
“At some level, there is a gun to our heads because we don’t use electricity frivolously and need it to run tools to build projects,” said Scott Kaats, CEO of Bycor General Contractors. “I’m not aware of any practical way to reduce the power usage of our equipment.”
Kaats said at his company’s Miramar-area office workers have been quick to turn off lights when they leave a room. However, computers and copiers need to run almost continuously, so there is no way to conserve the power they use, he said.
“If somebody could show me a solar-powered saw at this point, I’d be glad to look at it,” Kaats said. “We use a lot of battery-powered hand drills, but they need to be recharged.”
In contrast, another San Diego builder, Peterbuilt Corp., has not been dramatically affected by the rising price of power, according to Judy Kreisberg, executive vice president.
“There’s not much we can do to cut back more,” Kreisberg said. “We’re fairly conservative in our energy use already.”
Jim Ryan, executive vice president of the San Diego Chapter of the Associated General Contractors of America, said he has heard a lot of complaints the past several weeks from member builders about their utility costs. However, other than cutting back the use of air conditioning in their offices, there hasn’t been much they can do he said.
Donna Morafcik, a spokeswoman for the Building Industry Association of San Diego, said it’s too soon to see a backlash from the higher electricity costs.
However, she predicted the homebuilders who make up the bulk of the BIA’s membership would be doing more to promote energy efficient homes in the future.
