Your Office Building’s Electricity Charge
I belong to the DFW Independent Brokers and every month we have the opportunity to have a presentation given by high quality firms that service the Dallas commercial property owners. Our meeting today was an interesting even. The discussion was about the management of electricity for office and industrial buildings and how much efficient management can reduce the cost of electricity and reduce operating expenses.
You may be wondering why I would focus upon electricity for office space. The reason is that there are usually two ways a tenant will pay for their electricity in a multi tenant office building. They either pay their prorated share of the building’s entire electricity bill or they have a “full service lease” and the electricity will be included in the operation expense and passed though to the tenant. In either case if the landlord can reduce the office building’s electricity expense the tenant will benefit.
So today’s meeting was with Rapid Power Management and a most informative presentation was made by Jared Patterson Senior Energy Manager. A few areas of interest for the electricity consumer to consider. The majority of America’s electricity is being produced by either natural gas or coal. The cost of natural gas in America is cheap compared to the rest of the world because we are the Saudi Arabia of natural gas. Our energy companies have been given approval by the federal government to start exporting gas to other countries that are willing to pay ninety percent or more for the gas that Americans will pay. Obviously this will increase the price of America’s gas and since electricity is produced by generators powered by natural gas the price of electricity will increase in two years.
Commercial Electricity Increasing in 2016 for Office Buildings
Coal is the other source of energy to produce electricity in America. In 2016 many coal powered electricity generating systems are going to come off line because of US Federal Government regulations. These two events are expected to have a dramatic impact on the price of electricity in your office building.
Tenants and office building owners need to start looking for experts in the energy management business now to place their businesses in the best position to reduce the electricity expenses now and in the future. You need to ask yourself some important questions:
- Are you managing your energy expenses or are they managing you?
- Do you have an energy purchasing strategy?
- Are you aware of energy price reductions and prepared to take advantage of them when they occur?
These and many more tasks are handled when you have a quality energy management company helping you navigate the expense of electricity for your building. You can avoid the electricity gotchas that many companies are paying but you can avoid:
- Meter Fees
- Payment Terms
- Band Width Charges
- Nodal Charges
- Meter Adds and Delete Charges
- An avoid termination notice charges
Quality Energy Efficient Solutions Can Reduce Operating Expenses
If you are a tenant and you are billed by your landlord for your electricity you can help yourself by helping your landlord and share information with them that will help the landlord reduce their expenses which ultimately are passed on to you. If you are looking at a new building for to lease you should investigate to see what type of energy management is in place on the building because you will benefit if they are monitoring the energy market.