Dealing with a complete mess on a Denver office building. Property manager has been including Xcel Energy costs in CAM charges but their reconciliation methodology is completely wrong. They're allocating costs based on square footage instead of actual usage, and they're including utility taxes that should be direct tenant charges. Three years of reconciliations need to be redone. The estimated tenant overcharges are around $47K. Has anyone dealt with Xcel's complex rate structures in CAM calculations?
Xcel Energy CAM reconciliation nightmare
Carl, that sounds like a property management company that doesn't understand utility billing basics. Square footage allocation only works for common area costs, not individual tenant usage. Are they at least separating demand charges properly? In Texas, we see similar issues with complex Oncor transmission charges.
I've seen this exact scenario in Charlotte with Duke Energy. The utility tax issue is huge - those should always flow through to tenants at cost, not be marked up in CAM. Carl, are you dealing with Xcel's time-of-use rates or just standard commercial rates? That can really complicate the allocation methodology.