Is your district going green with utilities?

by Nicki Hess

With the idea of saving money for utilities, some school districts are inquiring about wind-generating turbines as an alternative source of energy and to lower the cost of utility expenses.

Although most district-owned property is covered under your property coverage; wind-generating turbines fall under a separate line of coverage called Equipment Breakdown Coverage. Any equipment that “generates, transmits, or uses energy” would be covered under this type of program, and applicable deductibles would apply. If you carry Equipment Breakdown coverage through the Fund, look for the following language in your coverage document for more explanation:

See Equipment Breakdown Coverage Document, “Section, 11. Electrical Generating Equipment

A. “Electrical Generating Equipment” means equipment that converts any other form of energy into electricity. This includes, but is not limited to, the following:

1. Boilers used primarily to provide steam for one or more turbine-generator units
2. Turbine-generators (including steam, gas, water or wind turbines)
3. Engine-generators
4. Fuel cells or other alternative electrical generating equipment
5. Electrical transformers, switchgear, and power lines used to convey the generated electricity; and
6. Associated equipment necessary for the operation of any of the equipment listed in (1) through (5) above.

B. “Electrical Generating Equipment” does not mean:

1. Elevator or hoist motors that generate electricity when releasing cable; or
2. Equipment intended to generate electricity solely on an emergency, back-up basis. "This term does not appear elsewhere in this coverage form, but may appear in the Equipment Breakdown Coverage Summary.”

If you are purchasing such equipment or already using wind-generating turbines, call your Risk Management consultant or the Property/Casualty Underwriting Department at 800.482.7276 to verify your coverage needs.