Electrical Surcharge Inclusion Eliminated

February 1, 1997

LVT Number: 11249

Before 1984, landlord was billed for electricity provided at the building through one meter. Landlord in turn charged tenants for electricity as part of their rent. In 1984 landlord applied to DHCR for permission to switch to ``electrical exclusion,'' whereby each tenant would have his own meter and be billed directly for electricity by the utility company. The DHCR approved the conversion and ruled that for some period interim rent adjustments would be made. By 1989 the DHCR ordered landlord to stop collecting electrical inclusion surcharges and reduced tenants' rents by 6.6 percent.

Before 1984, landlord was billed for electricity provided at the building through one meter. Landlord in turn charged tenants for electricity as part of their rent. In 1984 landlord applied to DHCR for permission to switch to ``electrical exclusion,'' whereby each tenant would have his own meter and be billed directly for electricity by the utility company. The DHCR approved the conversion and ruled that for some period interim rent adjustments would be made. By 1989 the DHCR ordered landlord to stop collecting electrical inclusion surcharges and reduced tenants' rents by 6.6 percent. Landlord appealed, claiming this was unreasonable. The court and appeals court ruled against landlord. Once landlord no longer supplied electricity to tenants, it could no longer collect a rent surcharge.

Maya Realty Assocs. v. Holland: NYLJ, p. 32, col. 1 (1/16/97) (App. Div. 2 Dept.; Miller, JP, Sullivan, Altman, Goldstein, JJ)

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