Utility Allocation Policies & Procedures - Employee …

1 Milestone Management 03/2017 Utility Allocation Policies & Procedures This manual will cover the RUBS program including Allocation methods, addenda, and conservation. Utility Allocation Policies & Procedures 2017 2 Table of Contents Glossary of Utility Terminology .. 3 RUBS Program Overview .. 4 Regulation .. 4 United States Environmental Protection 4 Texas public Utility Commission .. 4 RUBS Allocation Methodology .. 5 Exclusions RUBS and Sub-metering .. 5 Exclusions Sub-metering .. 5 Inclusions .. 5 Common Area Deduction Guidelines .. 5 TAA - RUBS Calculation Based on Average Occupancy for # of Bedrooms -Sample.

2 6 NAA - RUBS Calculation Based on # of Bedrooms -Sample .. 6 RUBS Calculation Based on Actual Number of Occupants -Sample .. 6 RUBS Calculation Based on Square Footage and Number of Occupants - Sample .. 7 RUBS Calculation Based on Occupancy Ratio .. 7 Service Providers .. 8 Life of a Utility Bill .. 8 Monthly Billing .. 9 Resident Statements .. 9 Convergent Billing .. 9 Data Verification .. 9 Billing Timeline .. 10 Prebill Report Policy and Procedures .. 11 AUM Prebill .. 11 ConService Prebill .. 11 Paylease Prebill .. 11 Utility Billing Reports .. 11 AUM 11 ConService Reports.

3 11 PayLease Reports .. 11 Utility Monitoring Agency .. 12 Continuing Service Agreement (CSA) .. 12 Vacant Recovery .. 12 Lease Contract and Utility Addendums .. 13 Utility Billing Hi, Low, Average .. 13 Utility Addenda .. 14 Texas Utility and other RUBS Addenda .. 16 NAA Utility and Other RUBS Services .. 24 Utility Expense Management .. 27 Disconnection Policy at Move In (Electric/Gas) .. 27 Clubhouse Utilities .. 28 Conservation .. 29 Utility Support and Contacts .. 32 Extraordinary Usage of Water/Sewer .. 32 Disputed Electric/Gas Recovery .. 32 Milestone Action Plan for Unexpected Interruption of Power (Electric or Gas).

4 33 Utility Allocation Policies & Procedures 2017 3 Glossary of Utility Terminology Allocation Allocation is the process of distributing an amount or portion of a resource to a particular recipient. As it relates to this course, Utility expenses are divided amongst residents by means of a RUBS formula rather than based upon their actual usage. Common Area Accounting for the common area Utility usage by a pass-through percentage amount deducted off the master metered Utility bill for the irrigation system, pools, vacant units, Continuing Service Agreement (CSA) Continuing Service Agreement for uninterrupted electric service upon disconnect of a resident s service.

5 Deregulation Deregulation is the elimination of certain rules and regulations in a particular industry. As it relates to this course, deregulation of electricity and gas in certain areas of the country has offered more competition among Utility providers and more choices for consumers. Meter A device that measures actual Utility usage or consumption. Resident Billing Statement Monthly bill sent by Service Provider to the resident each month detailing the current rent, utilities etc. due to the property. Statements can be mailed to alternate addresses or resident can go online and sign up for paperless billing.

6 Ratio Utility Billing System Ratio Utility Billing System (RUBS) is a calculation method that uses a compensation factor to allocate Utility costs among users. Service Provider A company that provides billing services, either sub-metered and/or RUBS. Sub-metering The practice of using meters to measure master metered Utility consumption by individual users. public Utility Commission (PUC) The Texas public Utility Commission (PUC) regulates the Allocation and Sub-metering of water and wastewater in accordance with PUC rules and guidelines in Texas. Many Utility program responsibilities were transferred from the Texas Commission on Environmental Quality (TCEQ) to the PUC in 2014.

7 United States Environmental Protection Agency (USEPA) The United States Environmental Protection Agency (EPA or USEPA) is an agency of the Federal government of the United States which was created for the purpose of protecting human health and the environment by writing and enforcing regulations based on laws passed by Congress. Utility Used alternately to describe a provided natural resource commodity, such as water, gas or electric. Utility Monitoring Agency (UMA) A Partner Company to the Service Provider, the Utility Monitoring Agency is an accounts payable and Utility monitoring/auditing company.

8 They directly receive property Utility bills from the local Utility and then fully audit and pay them. They then forward the data to the Service Provider to use for Vacant Recovery Billing, reporting, and on-line storage. Vacant Recovery Vacant Recovery is the process by which electric or gas utilities are billed back to a resident if they do not have or keep service in their name while occupying the unit. Vacant Recovery amounts are calculated by the Service Provider and are billed back to the resident whenever possible. Units of Measure Standard amounts used to measure consumption of a natural resource commodity.

9 - Water is measured in Gallons. gallons of water = 1 cubic foot of water. - Gas is measured in Therms. 1 therm of gas = 100 cubic feet of gas. - Electricity is measured in Kilowatt Hours. 1 kilowatt hour = 1000 watts of energy. Utility Allocation Policies & Procedures 2017 4 RUBS Program Overview Due to higher costs and limited resources, it s a rising trend to transfer the responsibility of paying for Utility services incurred back to the residents. Apartment residents are billed for utilities in two basic approaches, RUBS or Sub-metering, to allow each resident to take personal responsibility for resource usage.

10 Some community s residents are allocated through the use of a Ratio Utility Billing System (RUBS) method that allocates Utility costs via a mathematical formula. The total usage is measured as a master meter and then the bills are allocated according to the formula selected, which is a fair, equitable calculation. RUBS billing methods are used for many reasons, but primarily because the plumbing configuration on a particular property can make sub-metered installation difficult or impossible. Other community s residents are individually Sub-metered. This means each apartment home has its own water/gas/electric meter that is read by an outside company.