Grow took over a warehouse and inherited the prior tenant's rate class

This is going to be a recurring pattern for anyone working this sector and I want to get it in front
of people early.

Cultivation operator leased a 40,000 square foot building that was previously light distribution.
Warehouse load was maybe 60 kW with a terrible load factor. They built out four flower rooms and now
run 900 kW at a load factor north of 0.75.

The account never changed rate class. They are still on the general service schedule the warehouse
was on, which has a demand threshold above which the utility is supposed to move you to the large
general service schedule with a lower energy rate and a different demand structure.

Eighteen months on the wrong schedule. My preliminary number is between 71,000 and 84,000 depending
on how the utility handles the true-up.

Two lessons. Any time a tenant's use changes fundamentally, the rate class is the first thing to
check, and the utility will not do it for you. And when you take on a cultivation client, ask what the
building was before. The answer is almost always something with a completely different load shape.

Adding to this: the true-up depends heavily on the tariff. Some utilities move you to the new schedule going forward from the date they notice, others will apply it back to the date the load crossed the threshold if you can document it. Have the interval data ready that shows the first month demand exceeded the threshold, and check what notice obligation the tariff puts on the utility. That can be the difference between recovering the whole eighteen months and a few months.

Agree with the second lesson. I also ask for the prior tenant account history and any service upgrade or transformer work the utility did for the buildout. If the utility upgraded service there is a work order and a date, and that date is the cleanest starting point for when the account should have been reviewed.