Mixed Use Property Rate Classification - Office Building with Retail

Started by Lori H. — 13 years ago — 1 views
Lori H. from Aurora, Colorado. Have a client with mixed-use building - 60% office space, 40% retail. Xcel Energy has them on Schedule SG (Small General) but demand is approaching the 100 kW threshold. Building has separate spaces but single meter. Should they stay on general service or explore other options? The retail portion has different usage patterns than office space.
Michael R. from Albuquerque. Mixed-use properties can be tricky for rate classification. PNM usually classifies based on primary use, but sounds like your building is pretty evenly split. At 100 kW threshold, you'll need to look at Xcel's next rate tier anyway. What's Schedule MG or LG look like for demand charges?
Schedule MG (Medium General) kicks in at 100 kW with higher demand charges but lower energy rates. Load profile shows peaks around 95 kW currently, so we're right at the threshold. Worried about crossing over without evaluating all options first.
Nancy P. from Austin. Similar situation with mixed-use property here. Oncor classified based on predominant use (office) even though significant retail component. Might be worth asking Xcel about their mixed-use classification policies before you hit that 100 kW threshold.
Nancy, good suggestion. Will contact Xcel to discuss mixed-use classification policies. Better to understand options before hitting the threshold than scrambling after.
Craig W. from Jackson, Wyoming. Rocky Mountain Power handles mixed-use properties by predominant use unless customer requests separate metering. Separate meters might open up different rate options for each space type, but installation cost could be prohibitive.
Craig, separate metering is interesting idea but you're right about cost. Building is older and would require significant electrical work. Probably not cost-effective unless rate savings were substantial.
Iris W. from Santa Rosa. PG&E territory here - had mixed-use building that benefited from staying on single meter but negotiating special rate consideration based on load profile analysis. Sometimes utilities are flexible if you present good data.
Iris, that's encouraging. Will compile load profile data to show the mixed usage patterns. Might help justify staying on more favorable rate even after crossing 100 kW threshold.
Final update: Worked with Xcel to analyze load patterns and mixed-use classification. They agreed to keep property on Schedule SG with special provision for mixed-use, even slightly above 100 kW threshold. Key was documenting the retail vs office load characteristics. Saved significant money versus automatic move to Schedule MG. Thanks everyone for the guidance!