Konish: Multi-family and non-residential buildings should optimize meters to save money

Letter to the editor

Our Onerous GRU Bills Can Best Be Mitigated Through Rate & Tax Analysis & Solar Power

GRU provides electricity to approximately 110,000 METERS. Just under 40% of these meters are located beyond City of Gainesville limits in the Alachua County unincorporated “urban fringe.” These county meters are charged a PYRAMIDED SURCHARGE, equal to the City of Gainesville Utility Tax, IN ADDITION TO THE COUNTY UTILITY TAX and other taxes.

Approximately 10% of all GRU electric meters are classified as “Non-residential.” These GRU meters receive about 50% of GRU retail electricity. Residential GRU customers face one big, ugly, bundled monthly pay-it-all-or-be-disconnected GRU electric bill. The only strategy is to lower kWh consumption through conservation and/or solar. Non-utility City of Gainesville Stormwater and Garbage Fees are tied to the electric meter. In the urban fringe, Stormwater and Garbage Fees go onto the ad valorem property tax bill, but the pyramided GRU surcharges and County Utility Taxes kick in.

The term “Residential” is legally a very technical term. Any GRU electric meter that is not “Residential” is Non-residential, per se. There are profound consequences that attach to the GRU rate classification assigned. I stress that I refer to METERS –- not customers or buildings. It is impossible to overemphasize that for optimal outcomes, either a Multi-Family Residential or Non-residential building MUST HAVE the correct number of meter(s), the meter(s) must be located in the correct place(s), the correct type of meter must be installed, AND the optimum electric rate must be obtained. 

In the near future, universal TIME-OF-DAY GRU pricing will come into play as well. Uneconomic metering will cost the GRU electric customer dearly. Introduction of solar power into multimeter non-residential buildings is optimized by expert rate analysis.

A GRU “Residential” meter must be:

1. Purely residential
2. Nontransient (the definition is somewhat vague and varies between GRU and the Florida Dept. of Revenue (DOR))

There are special carve-outs for off-campus fraternities and sororities. The status of the St. Francis House is unclear. Questions arise as to the classification of apartment complex common areas such as lounge, pool, exercise room, maintenance closets, etc.

If an amenity is provided to all tenants equally without additional charge, then the appurtenant meter should be “Residential.” Any second Residential GRU electric meter has been arbitrarily and sometimes incorrectly classified as Non-residential by GRU. Importantly, Residential rates are very different and generally lower than Non-residential rates, and sales taxes do not apply. Changes in use can also require a new GRU rate classification. 

Non-residential GRU electric rates are different, generally higher and extremely complex, and can be subject to sales taxes (there are myriad, complex exemptions). 

For the so-called “small” Non-residential GRU electric customer, the residential “Customer Charge” is doubled, along with a very high double the residential kWh rate from 1-1500 kWh & 1500+ kWh, plus sales taxes, if applicable. Such a GRU ratepayer is further classified as “Nondemand.”

If your Nonr-esidential GRU electric meter EVER registers consumption of 50 kilowatts (kW) in ANY 30-minute interval, computed as two (2) consecutive 15-minute intervals averaged, then your GRU electric rate classification on that meter that month AUTOMATICALLY SHIFTS WITHOUT NOTICE TO A “DEMAND” RATE!

If you do not hit 50 KW for 12 months, the GRU electric meter automatically shifts to Nondemand, WITHOUT NOTICE.

Please pay close attention from now on. A GRU “DEMAND” meter plays triple the Nondemand Customer Charge, plus over $11.55/kW above 50 kW, with 35 kW billed as a minimum. In turn, the GRU kWh charge is about 50% less than the Nondemand rate.

Simplified, if you pay GRU $515.24 in fixed charges monthly, you are billed a 50% discounted kWh charge, subject to a “Demand Charge” of $11.55/kW over 50 kW – without limit. A minimum of 35 kW is billed.

What practically NOBODY understands is that:

1. Only the ONE (1) highest 30-minute interval is billed per month for kW “load” at $11.55/kW, with a minimum of 35.
2. You can shift GRU rate plans by contract.
3. That minimization of the kW (load) charge can save significant amounts of money. Replacement equipment will generally not affect load.
4. That load managemen,t in conjunction with a contract rate and solar power, can and has alone cut some GRU electric bills by 50%.
5. Load management extends the life of certain electrical equipment.

Consider this a brief introduction to understanding your Residential & Nonresidential GRU bills. For more information, go to whypaygrumore.com.

Jim Konish, Gainesville

The opinions expressed by letter or opinion writers are their own and do not necessarily represent the views of AlachuaChronicle.com. Assertions of facts in letters are similarly the responsibility of the author. Letters may be submitted to info@alachuachronicle.com and are published at the discretion of the editor.