Anyone else dealing with Duke Energy's latest rate hike on Schedule MGS (Master General Service)? My client owns a 48-unit complex in Charlotte and their monthly bill jumped from $3,200 to $4,150 starting October. The demand charges alone went from $8.50/kW to $11.25/kW. Property management is scrambling to figure out how to pass this through to tenants without violating lease agreements. Has anyone successfully negotiated with Duke on master-metered accounts this size?
Duke Energy rate increase crushing master-metered properties
Karen, we're seeing the same thing here in Atlanta with Georgia Power. The commercial tariff restructuring hit master-metered properties especially hard. What's your client's load factor looking like? Sometimes switching to a TOU rate can help offset the demand charge increases if the property has good diversity. Have you run the numbers on Schedule MGSV (variable pricing)?
This is exactly why I always recommend sub-metering new construction. The upfront cost is nothing compared to what you'll save long-term. That said, for existing master-metered properties, look into PECO's Schedule R-HT if you can prove the usage is primarily residential. In Philly, I've had success getting apartment complexes reclassified from commercial to residential rates even when master-metered.
Phil makes a good point about rate classification. Here in California, PG&E has a specific E-7 schedule for master-metered residential that's much more favorable than commercial rates. The key is demonstrating that 80% or more of the load is residential. You'll need detailed load studies and tenant occupancy data. Worth the effort though - I saved one client $18,000 annually on a 60-unit property.
Thanks for the suggestions everyone. Update: Duke agreed to review the rate classification after I submitted three months of 15-minute interval data showing clear residential usage patterns. The property has individual electric water heaters and HVAC units, so the load diversity is obvious. Fingers crossed we can get moved to Schedule RS-LM (residential large). That would save about $800/month based on my calculations.
Karen, definitely push for that residential classification. Georgia Power fought me on a similar case last year but eventually approved it when I showed them the detailed breakdown of apartment vs common area usage. The common areas (hallways, office, pool equipment) only accounted for 12% of total consumption. Make sure your submission includes a letter from the property manager confirming the residential nature of the complex.
This thread is gold. I'm dealing with a similar situation with Duke Energy here in Charlotte on a 72-unit property. The Schedule MGS rates are brutal for apartment complexes. Karen, if you don't mind sharing, what specific documentation did Duke request for the rate review? I want to make sure I submit everything they need the first time around.
Derek, here's what worked for my Georgia Power case: 12 months of interval data, floor plans showing unit layouts, lease agreements proving residential use, property tax assessment showing residential classification, and a load study breaking down apartment vs common area usage. The key is proving residential character, not just that people live there. Good luck!