Quick question for anyone familiar with Ameren Missouri tariffs. Our Springfield office building just got switched from General Service to Large General Service rate schedule and the landlord is claiming this increases our proportionate utility costs by 35%. Looking at the tariff sheets, I see different demand charge structures but the overall rate seems comparable. Anyone dealt with Ameren LGS rate impacts on lease pass-throughs? Trying to figure out if this is legitimate or if landlord is using the change to inflate costs.
Ameren rate schedule change affecting lease calculations
Elmer, I'm not familiar with Ameren Missouri specifically, but rate schedule changes usually happen when usage thresholds are crossed. Alabama Power has similar triggers where buildings move to different rate classes based on demand or consumption levels. The 35% increase sounds high though. You should verify: 1) Why the change occurred - was it due to increased building usage? 2) How the new demand charges are being allocated among tenants. The calculation methodology might have changed even if the underlying rates are similar.
Albert's advice is solid. Here in Idaho with Idaho Power, we see buildings move between rate schedules when they add new tenants or equipment that pushes them over demand thresholds. The key is whether the rate change benefits the building overall or just shifts costs around. Elmer, request the actual Ameren bills showing before/after costs. If total building costs didn't increase proportionally, then your 35% jump might be due to allocation methodology changes rather than actual rate impacts.