Mesa office tenant is enrolled in APS's demand response program through their lease pass-through arrangement. Building participates in curtailment events and receives credits. Question is whether tenant should get their proportional share of demand response credits or if landlord can keep them. Lease is silent on this issue.
Arizona Public Service demand response credits in Phoenix office lease
Christie - that's a gray area. If the tenant is paying proportional utility costs, they should probably get proportional credits too. But if the landlord is managing the demand response participation and taking on the compliance risk, they might argue they deserve the credits.
I've seen this argument go both ways. In Phoenix, some landlords share DR credits proportionally, others keep them as "building management compensation." Without specific lease language, it often comes down to negotiation and reasonableness.
APS paid the building $1,847 in demand response credits last month. Tenant represents about 30% of building usage. That would be $554 they're potentially owed. Not huge money but the principle matters.
Update - landlord agreed to share DR credits proportionally starting next month. They kept prior credits but will include tenant's share going forward. Sometimes just asking the question gets results.