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Definitions

Electric Resale
To achieve resale, all tenants and common area are to be billed on a secondary system. The primary electricity is billed on a primary rate by the local electric provider. The tenant meters are billed on a secondary rate by Oakland Utilities. Because the secondary meters and transformers are owned by the property management or owners, the tenants remit their bills to that management company or owner. The money collected from the tenants is, depending on the area rates and terrifs, 2 to 6 to 10 cents per kWh higher than the primary electricity being billed by the local provider. The difference is profit.

Utility Recovery
Recovery is just that… recovering the utility expenditures for Water, Gas or Steam from the tenants of your property. There have been many instances of owners being sued by tenants for “unfair billing practices” when these utilities are simply split up by square footage. For this reason, Oakland Utilities strongly recommends the use of sub meters.

Rent Inclusion
Some areas of the US do not allow Electric “Resale”.  However, most do allow for recovery. That is why we’ve created a product call, “Rent Inclusion”. Simply stated, this is achieved by adding a line item statement to the tenants lease. Contact Oakland Utilities for the official Lease Language. By attaching a Oakland Utilities prepared bill to the tenants monthly rent statement, it becomes a Tenant Rent Component.

Last Updated on Monday, 25 August 2008 14:17
 
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