Landlord Can Convert to Individual Metering

Landlord asked the DHCR for permission to convert from rent inclusion to rent exclusion of electricity by installing individual meters in tenant apartments. The DRA ruled for landlord on the condition that landlord reduce rents. Tenant appealed, claiming that he was paying $150 per month for electricity and that the rent reduction resulting from the electrical conversion should reflect the monthly charge. Tenant also claimed that electrical charges illegally incorporated into his total rent years before should be refunded. The DHCR ruled against tenant. Under direct metering, tenants purchase electricity directly from the utility company at a residential rate. DHCR Operational Bulletin 2003-1 permits a change from master metering to direct metering with rent reductions as stated in a schedule listed in the Operational Bulletin. The rent reduction schedule is based on the median monthly cost of electricity to tenants derived from dates from the United States Census Bureau's New York City Housing and Vacancy Survey. Therefore, the rent reduction ordered by the DHCR was proper.

2300 Olinville Avenue: DHCR Adm. Rev. Docket No. SK610076RT (1/3/08) [2-pg. doc.]