Working on a retail center lease audit in Wichita and the landlord is claiming the tenant should be on Westar Energy's LGS rate schedule instead of the current SGS schedule. The difference is about $800/month in higher costs. Landlord says it's because the tenant's peak demand hit 51 kW last summer, but I'm seeing conflicting information about the threshold. Anyone familiar with Westar's commercial rate schedules? The tariff language is pretty convoluted.
Westar Energy rate schedule confusion in lease audit
Rachel, I don't work in Kansas but this sounds familiar from my CPS Energy audits here in San Antonio. Most utilities have demand thresholds where they can move you to a different rate class, but there are usually notification requirements and sometimes the customer can opt to stay on the lower schedule if they install demand management equipment. Check if Westar has any demand limiting options that would keep your client on SGS.
I've dealt with similar issues with Idaho Power. The key question is whether that 51 kW peak was a one-time event or sustained usage. Many utilities give you options if it was just a temporary spike. Also check if the lease requires the landlord to give the tenant notice before changing rate schedules. Some leases require tenant consent for rate changes that increase costs.
Warren's advice is solid. Here in North Dakota with Otter Tail Power, they typically require three consecutive months above the threshold before forcing a rate change. Also, many commercial leases have language about "most economical rate schedule" which could work in your tenant's favor. I'd push back on the landlord and demand they justify why LGS is actually required versus optional.