Raise in utilities

[jal101]

I rent 8500sf of industrial space in California. I have a 7 year lease which states that I am to pay XX cents per sf for utilities as long as my landlord is the supplier. Jan 1st my rent invoice showed my utilities in the amount of 2,600.00 and the normal amount was 170.00. I am told there is a new electric meter etc.. and now my utilities are being supplied by the utility company, however I receive no bills from these companies, I still receive only a billing from my landlord. Can my utiliies be raised with no notice, without re-negotiating my lease and by that exhorbantant amount??

 

[djdj]

UH DUH...... have you been reading the newspaper and watching TV lately?

California is SCREWED........everybody is screwed there..

so get in line......IT WILL GET WORSE!

Its time to pay your lawyer and figure this out...

everyone is going to screw everyone.,,,

DOG EAT DOG IN CALIFORNIA! ......

 

[jal101]

We see the energy shortage, and that does not have any bearing on the question we are asking. I am surprised the you responded in this way> HU Duh.... The question that was put to you deals with weather the land lord has a right to charge for services we do not receive, and have not been from the start of our new lease. The only thing that did change was a new meter was installed because Edison changed out the transformer going to our building. Our lease clearly states that when (When the Lessor no longer functions as supplier. Lessee will then be obligated to obtain service from the appropriate provider.) They get the bill not us. Nothing really has changed, other than edison installing a new meter because our service to the building up graded. We still recieve a bill from our lessor. But now they add in for services we are not useing, (HVAC) (or want to use) and dividing the electrical use of the complete building with us having far more sq ft than other tenets. We are taking the brunt for most of the bill. They in effect have taken it upon themselves to say who pays more for utilitys when that was written in our lease with 6 1/2 left on it. There have not been any increases by the KW. HR.for electricl service from the real provider. So CAl Edison.
Got it? Please Don't treat us like fools. You only make yourself look like one, when you respond like you did.

Thank you

 

[LL]

Sounds to me like its all according to the lease.

You agreed to pay XX cents per sf for utilities as long as your landlord is the supplier. If he's not the supplier, what did you agree to?

We now have a wide variety of electricity suppliers in CA who are not related to the big utilities that we used to have. Some of them are just buying electricity from the big suppliers and then selling them off to users, and the price is unregulated.

Sorry, blame Governor Grey Davis. Did you know that he used to be Jerry Brown's assistant? (Remember Gov. Moonbeam?)

 

[LL]

Sorry, I didn't read your rejoinder to djdj, since I thought it was all about him.

So, your lease clearly states that when (When the Lessor no longer functions as supplier. Lessee will then be obligated to obtain service from the appropriate provider.)

Did you do that?

You will now have to negotiate with the appropriate provider for your electrical rates.

 

[djdj]

Remember you are in califronia, and anything goes right now.
Everybody is trying to screw everybody, so

Can YOU get your own meter for your OWN area? that seems like the cheapest solution,

And of course a Lawyer is a tax deductable expense.

 

[jal101]

Thanks to you both for your replies.

We did request our own meter at the beginning of the lease negotiations, however it was to no avail.

We were totally unaware that these changes were taken place until we got our January rent invoice with the increased amounts. In addition to that they back billed to October 2000 for the utilities. Our landlord claims they are no longer the supplier but our utility billing still comes from them as it always has. We were not given the opportunity to "obtain service from the appropriate provider." This is a 30,000sf building, about 17,000sf is currently rented, and of that 17,000sf we have 8,500sf. The landlord did his math and determined that our percentage of the bills would be 55%. We do not have and have never had heat or air conditioning. Paying 55% of the gas bill, which is in excess of 500.00 is unrealistic to us. With no heat how are we useing the gas?? There are common restrooms, everyone uses them, why should we have to pay 55% of the water bill. There are only two of us here and other businesses have more that 5 employees, shouldn't they be charged more??

The other issue is, we were in another building, the landlord chose to have it demolished to make way for one of their new projects, there was nothing wrong with the building, so we had to move. The new lease negotiation was taking into consideration the hardship on us to move our business. We deal with heavy machinery, moving took a month, they had no phones in the new building, I can't tell you the lost of business etc..

I would think at the very least we should have been given notice that this was going to happen and also given the opportunity to re-negotiate the lease and\or find our own providers.

 

[djdj]

Well you will have to talk this over with your lawyer...you have very very good points, and about the gas, and and is the whole 30,000 sq ft being lighted? is any other part of the building using electricty for HVAC or orther heavy uses? at the minimum you should be paying like 28% not 55% 7500 divide by 30,000 not 17,000...

Its too bad people in Cali are starting to act like dog eat dog.

 

[jal101]

Yes, the entire building 30,000sf is lighted and there are also exterior lighting. With the exception of our 8500sf and the restrooms and hallways the entire rest of the building has heat and air conditioning.

The landlord is using the amount of square footage that is actually being rented right now (not the total square footage of the building) which is approx 17,000sf of that 17,000sf we have 8500sf hence the 55%. In essence the current renting tenants are paying the utitily charges for the spaces that are not currently rented.

 

[djdj]

OH that is so wrong....the LANDLORD should be paying for the unused space out of his own pocket!

 

[jal101]

Thanks for all your input, we have an appointment with an attorney Tuesday morning!