Dave from Phoenix. Client is doing a phased renovation of an 8-story office building. Floors 3 through 7 are completely vacant and under construction. Only floors 1, 2, and 8 are occupied and operating. The demand charge is still running at a level consistent with full occupancy because the construction equipment on floors 3 through 7 is drawing significant load. Is there a billing adjustment available for buildings in a known partial renovation?
Demand charge on a building under renovation — half the floors vacant
Paul from Minneapolis. Construction load is real load and the meter measures it correctly. The billing adjustment question is whether a lower service level is available during the renovation period to reduce the minimum demand charges.
Dave again. The construction cranes and lifts are temporary — probably another 14 months. After that the renovation demand drops sharply.
Paul again. If the construction equipment is connected to temporary power services rather than the permanent building service that is an argument for separate metering of the temporary load. The permanent building service would then reflect only the actual occupancy-driven demand.
Ron from Columbus. Also check whether the renovation permits include temporary power permits. Temporary construction power is sometimes on a separate service agreement with the utility. If the construction load should be on a temporary service but is currently flowing through the permanent building service that is a service setup issue worth addressing.
Ron the GC mentioned they tried to get a temporary service but the utility said the permanent service was adequate for the construction load. So it all went on the permanent meter.
Ron again. That is the utility's call but it does not preclude asking whether the demand charges during the construction period are being applied at the correct rate class for a partially occupied building.