I've got a 48-unit complex in Atlanta where the owner wants to convert from master metering to individual meters. Georgia Power is saying it's not cost-effective under Schedule R-18 and they won't do it. The monthly demand charges alone are eating up $2,800/month that can't be passed through properly. Has anyone had success appealing these decisions or found workarounds? The property manager is getting killed on utility costs.
Georgia Power refusing to split master meter - any luck with appeals?
Rachel, I've seen this before with Georgia Power. You need to document the economic hardship and show tenant usage patterns. If you can prove the master meter is causing disproportionate costs compared to individual metering, they sometimes reconsider. Get load studies from at least 12 months showing peak demand timing. The key is proving their cost analysis is flawed.
Down here in Savannah we had similar issues with Georgia Power. What worked for us was getting the property owner to agree to pay for the infrastructure upgrades upfront. Once GP didn't have to eat the conversion costs, they were much more willing to work with us. Cost about $85,000 for a 52-unit building but the monthly savings justified it in 18 months.
Eleanor, that's interesting about the upfront payment. Did you have to get that in writing before they'd even consider the engineering study? Our property owner might go for that if we can show solid ROI numbers. What was your monthly savings after conversion?
Yes, had to get a signed agreement for the infrastructure costs before GP would even send an engineer out. Monthly savings were about $4,200 - the individual meters eliminated the demand ratchet issues we were having. Tenants started conserving more once they saw their actual usage too. Win-win situation.
Be careful with the individual meter conversion promises. We had FirstEnergy tell us the same thing in Cleveland, then after we paid for upgrades they changed their tune on the rate schedule. Ended up stuck with higher per-unit connection fees that wiped out most savings. Get everything in writing including the final rate classification.
Frank makes a good point about rate guarantees. Here in Charlotte, Duke Energy has been more reasonable about master meter splits, but you need to lock in the residential rate schedule before conversion. Otherwise you might end up on a commercial tariff that's worse than the original master meter situation.
Thanks everyone. I'm going to push for the upfront payment option and make sure we get rate schedule guarantees in writing. Will report back on how it goes. This $2,800/month in demand charges has to stop somehow.