Dealing with a dispute over our Wichita retail space utility allocation. Building has Westar master meter but landlord installed submeters for each tenant about 6 months after we moved in. Now they want to switch from square footage allocation to submeter readings retroactively. Our consumption shows much higher than the previous allocation method would suggest. Lease is vague about utility allocation changes. Can landlord unilaterally change allocation methodology mid-lease? Anyone faced similar issues with Westar accounts?
Westar submetering vs master meter allocation - Kansas retail space
Rachel, generally landlords can't change allocation methodology without tenant consent unless the lease specifically allows it. I've seen this with Duke Energy submetering projects here in Ohio. The key question is whether your lease has language about "more accurate measurement methods" or similar. If submeters were installed after lease signing, they typically can't be used retroactively unless you agreed to it. What does your lease say about utility cost calculations?
Had almost identical situation with Xcel Energy in Boulder. Landlord tried to implement submetering after lease was signed and use it retroactively. We pushed back hard and they eventually agreed to only use new methodology going forward, not backward. The retroactive application is usually the weak point legally. Document everything about when submeters were installed versus when you took occupancy. Also verify the submeters are properly calibrated - seen plenty of faulty installations.
Lease just says utility costs will be allocated "equitably among tenants" with no specific methodology defined. Submeters were installed in August 2016, we moved in February 2016. Stuart, good point about calibration - how do I verify submeter accuracy? Landlord is claiming our January reading shows 3,400 kWh but that seems high for our 2,800 sq ft retail space with LED lighting and minimal equipment.
Rachel, 3,400 kWh for 2,800 sq ft retail could be reasonable depending on your operation, but worth checking. For submeter verification, request installation certificates and calibration records. Many jurisdictions require annual calibration for billing-grade meters. Also compare your submeter total with the master Westar meter reading - if submeters add up to more than 100% of master meter, there's obviously a problem. Since lease language is vague, you've got leverage to negotiate the methodology.