Auditing a small shopping center in Salt Lake City served by Rocky Mountain Power. The property has a master meter and the landlord sub-meters to 6 tenants. My LOA covers the master meter account but the sub-meter billing is handled by a third-party sub-metering company. Do I need authorization from the sub-metering company too, or just the utility for the master meter?
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Collecting data for accounts with sub-metering or tenant billing
You only need the utility LOA for the master meter since that's where the billing errors would be — Rocky Mountain Power bills the landlord on the master meter and whatever rate schedule it's on. The sub-metering company just allocates the master bill to tenants. That said, getting the sub-meter allocation data from the sub-metering company can help you understand usage patterns. If the landlord has a contract with the sub-metering company, they can usually get that data for you without a separate LOA.
One thing to watch with sub-metered properties — sometimes the master meter rate class is based on the total load of all tenants, but the individual tenant sub-meters show usage patterns that would qualify for a different rate. If the landlord is on a TOU rate but most tenants operate 9-5, the demand profile might qualify for a standard commercial rate that's cheaper. You need the master meter data from the utility to check this.
Good points from both Diane and Greg. For sub-metered properties, focus your LOA and audit on the master meter account with the utility. That's where billing errors occur and where savings are recovered. The sub-metering is a downstream allocation that doesn't affect what the utility charges. Greg's observation about rate class opportunities based on aggregate load profile is a finding that only shows up when you look at the master meter data holistically.