PSU's arent light bulbs. A "350 watt" psu doens't draw 350 watts. That's the theoretical maximum you can draw from it. Sure, SETI was probably drawing a higher load than idle, vs off, but I highly doubt it was drawing 100%.
Even more complicated is the heat. If they lived in a cool climate, at least some of the waste heat that was emitted would have been absorbed by the building, which they are (presumably) paying to heat at least a few months of the year.
Edit: also if it was a public school, wouldn't they be off for about 3 months over summer ?