Got a 240-unit apartment complex here in New Orleans on Entergy's Schedule LGS-1 master meter. Property manager is allocating based on square footage but tenants are screaming because some units have electric heat and others don't. Last month's bill was $18,400 for the complex and the allocation spread ranges from $45 to $185 per unit. Anyone dealt with similar pushback? The lease agreements don't specify how utilities get allocated beyond "proportional share."
Entergy New Orleans master meter allocation - tenant pushback
Juan, we see this all the time in San Antonio with CPS Energy master-metered properties. Square footage allocation is legal but not always equitable. Have you considered recommending sub-metering? The upfront cost might be worth it to eliminate tenant complaints. We've seen properties go from constant turnover to stable occupancy after installing individual meters.
The heating issue is huge. In Atlanta with Georgia Power we always recommend usage-based allocation when there's a significant heating differential. You could suggest RUBS (Ratio Utility Billing System) that factors in occupancy, square footage, AND heating type. It's more complex but tenants accept it as fairer.
Derek, that's interesting. Do you know any RUBS vendors who work in Louisiana? The property owner is resistant to sub-metering costs but might consider a better allocation method. The current tenant turnover is costing them more than they realize.
We use ConServ Utility Management for RUBS in California. They work nationwide and their Louisiana rep is solid. The key is getting a detailed unit survey - sq ft, occupancy, appliances, heating type. Expect setup fees around $3-5 per unit but monthly admin is reasonable.
Just be careful with Louisiana utility allocation laws. Some parishes have restrictions on how you can bill tenants for master-metered service. Cleveland Edison makes us jump through hoops here in Ohio, but Louisiana might be more restrictive. Check with the local utility commission first.
Good point Frank. I'll check with the Louisiana PSC. The property manager is getting desperate - they had three units move out last month citing unfair utility bills. At $850/month average rent, that's real money walking out the door.
Juan, did you ever get resolution on this? We're facing a similar situation in OKC with OG&E. 180-unit complex, master meter, tenants threatening a class action over allocation methods. Would love to hear how yours turned out.