Tenant in a Dallas office building is submetered. The landlord reads the submeter and bills the tenant at a rate that's supposed to match the utility's commercial rate. But the landlord is billing at $0.14/kWh when Oncor's delivery rate plus the REP supply rate comes to about $0.105/kWh. The landlord appears to be using a blended rate from 3 years ago that's higher than the current rate. Is this a utility bill audit issue or a lease dispute?
Submetered tenant — landlord using wrong rate
It's both. The utility bill error is that the landlord is using an outdated rate. The lease dispute is whether the landlord is obligated to update the rate. Check the lease — most submeter clauses say the tenant will be billed at the utility's "current" or "applicable" rate. If the lease says current rate and the landlord is using a 3-year-old rate, the tenant has a clear claim for the difference.
Karen is right. In Texas, submetering is regulated by the PUC and there are specific rules about how landlords can charge submetered tenants. The general rule is that the landlord cannot charge more than the utility would charge for the same usage. If the landlord is billing $0.14 when the utility rate is $0.105, that's a violation. Check PUC Substantive Rule 25.142 which governs submetering in Texas. The tenant may be entitled to a refund of the overcharges.
Pulled the PUC rule and the lease. Both support the tenant. The landlord owes about $2,800/month in overcharges going back to when the rate diverged. Filing the claim with the property management company. Thanks for the guidance.