John McManus, Harris Beach

In the Capital District, Redburn Development’s Tilley Loft apartment building has become known for its innovative and energy-efficient building concept. One major component of the energy-efficient building plan for the Tilley Lofts was submetering electricity to its tenants. For a building to submeter electricity, it must first receive approval from the New York State Public Service Commission (PSC). Harris Beach’s team of energy lawyers oversaw the drafting and filing of the Tilley Loft’s successful submetering application to the PSC.

In a submetered building, electricity is received through a utility-owned master meter, but electricity use in each unit is measured by building-owned meters. The building owner then bills electric charges to residents based on their actual consumption. When compared to the more traditional electricity metering methods such as master metering or direct metering, submetering electricity in multifamily dwellings has been shown to reduce a building’s energy usage by as much as 20%, according to studies from the New York State Energy Research and Development Authority.

By using submetering, the Tilley Lofts are able to buy electricity directly from the local utility, in this case, National Grid; deliver that electricity to residents via the building’s electrical system; and, using the building’s submetering system, monitor each unit’s actual electric consumption. The building is then able to charge residents for the actual amount of electricity consumed within their unit, which, in turn, encourages individual residents to conserve energy and a corresponding decrease in power plant emissions.

In contrast, with master metering, building residents take the view that ‘electricity is included’ with rent charges, and aren’t incentivized to consider energy-efficient behaviors, such as turning the heat down while they are out of the house, or opening windows on cooler nights instead of using air conditioning. Submetering electricity empowers residents to monitor and decrease their individual electric usage, as they are billed for actual consumption.

Electricity submetering has benefits to building owners, residents, and the environment, but the PSC’s detailed regulations can make it difficult for building owners to receive submetering approval. Harris Beach’s in-depth knowledge of the submetering approval process, as well as its vast experience with PSC and Department of Public Service Staff, was key to helping the owner of the Tilley Loft apartments obtain approval to submeter electricity at the building.

Harris Beach is currently working with several other Upstate and Central New York developers who are renovating and repurposing buildings for residential uses with the intent of ultimately submetering electricity in those buildings, in addition to the many New York City property owners and developers that Harris Beach regularly represents at the PSC concerning submetering at new and existing multi-family residential buildings.

John McManus is the managing partner, Capital District Offices, Harris Beach, Albany, N.Y.

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