Facilities such as commercial office buildings, residential condominiums, and mixed-use campuses recover utility expenses by either sub-metering tenants or by allocating tenant and common area costs by square footage. SourceOne works with our clients to ensure that their cost recovery models match up with lease language, validate billing data, and identify opportunities to maximize recovery.
Buildings which recover energy costs by sub-metering tenants need to be certain that all meters are accounted for, are assigned to the right tenants, and are properly commissioned so that readings are accurate. In addition, if a building is using a billing methodology that does not match tenant lease language, it may be at risk of under or over billing for usage.
In buildings where cost recovery may be lower than historical averages, or that have had disputes with tenants over bills or readings, SourceOne’s team is often called upon to perform a revenue recovery audit to validate the meter infrastructure and billing methodology, and implement corrective measures such as re-commissioning meters.
Another methodology for recovering utility costs is allocating costs to tenants based on square footage. To develop the recovery model, SourceOne performs a survey of each tenant space to catalogue all lighting and other collected loads (office equipment, kitchen appliances, etc.) and develop an estimated cost per square foot.
COMMON AREA/PUBLIC LIGHT & POWER SURVEYS
For allocation of utility costs in common areas and public spaces, SourceOne performs a physical audit of all base building systems, hallway lighting, etc. to develop a utility cost per square foot. This provides our clients with a defensible report that can be used to determine the appropriate billing methodology and ensure cost recovery.
Vornado Realty Trust
Sub-metering technologies recover multi-million dollars of utility costs. Vornado has been a pioneer in the sub-metering of its properties, and SourceOne has guided them through the process of reaching a fully designed, scalable and innovative solution.
Smart Metering Solution for Massachusetts Municipality
Massachusetts Municipality invests in innovative metering technology to enable residents to better manage their energy use and reduce spend and greenhouse gas emissions.