Why are we going to submetering for electricity?
The single biggest monthly expense that we have is electricity. We pay HECO between 9-10 thousand dollars each month for electricity (which is roughly $140.00 per unit). Since everyone pays for what everyone else uses there is little incentive to conserve. For example, some units have multiple refrigerators, and other heavy appliances, and others have very little. Thus, the heavy demand users are subsidized by the low demand users. Submetering brings fairness into the equation. Thus, people are rewarded with a lower bill if they conserve, and those who do not want to conserve pay a higher bill.
Will our maintenance fee go down?
Yes (most likely however it will depend on electric rates and your usage). The electric usage part of the monthly expenses will ONLY be for the common area elements such as the elevator, lights, pool, pumps, and so on. We are ESTIMATING that the common area usage will be between 2-3 thousand dollars based on the bill for a comparibly sized condo. Thus, if you are a low demand user then you should see a drop in your overall monthly expense, however, if you are a high demand user you will see an increase in your overall monthly expense. We will have a better idea of what the numbers will be during the trial period.
What if rates go up?
If rates go up then you will pay more. This, however, benefits the Association in that it will be better able to deal with the long term budgets. For those of you that remember the last assessment, one part of the cause for the need for the assessment was that the Association was not able to contribute capital to reserves due to the rapid spike in electric rates.
Is the project funded?
Yes. We have budgeted for this and have already paid for the meters. The only thing left to pay for is the installation. Plus we will have the added bonus of a $10650.00 rebate from Hawaii Energy.
Can I opt out from this and just pay my old maintenance fee?
No. This will change for all owners without any exception.
How will I get billed?
The Board is still working on this issue. Suffice to say you will get a bill for the exact amount of electricity that you use each month.
What if I can’t or don’t want to pay the bill?
This will be no different than if you didn’t want to pay HECO. The Association will have the authority to shut off your electricity, and/or go to collection which can include putting a lien on your property.