Rate class error on a new build — architect specified the wrong service

Started by Karl J. — 6 months ago — 4 views
Karl from Santa Ana. Unusual engagement — a brand new building, less than 18 months old, already on the wrong rate class. The architect specified a service size and type during design that turned out to be undersized for the actual tenant's operations. The utility installed service based on the architect's specification. Tenant moved in and their load exceeded the specified service parameters immediately. Utility reclassified them to a larger service category but did not optimize the rate class within that category. Found $1,800 per month in ongoing overcharges. Has anyone found rate class errors on buildings this new?
Earl from Hialeah. New construction errors are common because the design phase rate class selection is driven by estimated load, not actual load. Actual load is almost always different from design estimates.
The architect's load calculation was based on light commercial use. The tenant runs a medical imaging center. Very different load profile from what the building was designed for.
Earl again. Medical imaging equipment — MRI machines especially — creates significant demand peaks that are nothing like general light commercial use. The rate class for medical imaging often falls under a healthcare or specialized commercial schedule that would not have been on the architect's radar.
Eddie from North Las Vegas. The first 12 to 18 months of operation for any new commercial building are worth reviewing for rate class. The transition from estimated to actual load is where errors most often appear.
Eddie that is a good general rule for prospecting. New commercial tenants who have been operating for 12 to 24 months are potentially in exactly this situation.
Earl one more time. The medical imaging niche specifically is worth developing. The equipment is high-value, the load is distinctive, and the operators are sophisticated enough to understand the value of the audit but usually not utility billing specialists themselves.