Cumulative Amount Below Zero

Tenants objected to landlord's 2000 fuel cost report, which claimed that the fuel cost adjustment (FCA) was $17.49 per room per month. The DRA ruled for tenants, finding that the cumulative fuel cost adjustment for the year was $7.17 per room per month. The DRA directed a refund to tenants. Landlord appealed. The DHCR ruled for landlord in part. If the cumulative FCA falls to less than zero, landlord can't collect any fuel adjustment in future years until the full effect of the fall of the cumulative FCA to below zero is offset by later price increases. But the DRA miscalculated the cumulative FCA for 2000. It was $7.66 per room per month. So landlord owed tenants a smaller refund.

302 Marine Realty LLC: DHCR Admin. Rev. Dckt. No. PI220005RO (10/4/01) [3-pg. doc.]