Landlord Can Convert from Master Metering to Direct

(Decision submitted by James R. Marino of the Manhattan law firm of Kucker & Bruh, LLP, attorneys for the landlord.) Landlord asked the DHCR for permission to convert its building from master electrical metering to direct metering. Under direct metering, tenants pay the utility company for their electricity. The DRA ruled for landlord on the condition that tenants' rents were reduced under a schedule set forth in DHCR Operational Bulletin 2003-1. Tenants appealed, claiming that landlord should be required to switch to submetering, not direct metering. The DHCR ruled against tenants. Although submetering is encouraged, direct metering is an available option to landlords under the DHCR's Operational Bulletin. The required rent reductions are designed to ease the financial burden to tenants that results from conversion of the electrical metering system in the building.

Perez: DHCR Adm. Rev. Docket No. TL110076RT (5/8/08) [3-pg. doc.]