Rate class on a church with a school attached

Started by Lori T. — 3 years ago — 3 views
Lori from Sioux Falls. Picked up a church client that operates a K-8 school on the same property. The church and school share metering. The utility has the account classified as a religious institution rate which exists in this territory and is slightly discounted. But the school component means the account might also qualify for an educational institution rate which has different demand charge treatment. Anyone worked through this kind of mixed-use religious-educational situation?
Ruth from Fargo. I had something similar. The key question is usually which use constitutes the primary or dominant use by square footage or by load. In most tariff definitions one primary classification applies to the whole account.
The church sanctuary and offices are about 60 percent of the square footage. The school classrooms and gym are 40 percent. The school operates five days a week during the school year.
Ruth again. At 40 percent square footage and five-day operation the school use is significant enough to argue it qualifies for an educational rate on its own. The question is whether the utility will split the account or whether you need to request a combined rate review.
Iris from Boise. I would request a tariff interpretation from the utility's rate department first before filing any formal dispute. Put the question to them in writing: given this mixed use, which rate schedule applies? Get their answer in writing. Then you know exactly what you are arguing against.
Iris, that is a good approach. And if their written answer is wrong I have the documentation to challenge it.
Hank from Albuquerque. Also check whether the school operates a cafeteria or commercial kitchen. Food service equipment significantly affects the demand profile and might shift which rate schedule is most advantageous.