The Bishop Ranch lease provides for heating, cooling and power for tenant offices as utilized for general office. When tenants utilize electric equipment in their space in addition to what one would normally find at a desk, that equipment will use an above standard amount of power to operate which results in a large amount of heat that is rejected. For Bishop Ranch, as the landlord, this creates two issues:
1) The cost to power above standard equipment must be separated from the monthly building cost and be billed separately to the tenant. If it were not, all the other tenants in the building would be subsidizing those tenants who are using an above standard amount of power. Generally we accomplish this by sub-metering the electric use, reading the meters monthly and applying a monthly blended utility rate to determine the billable number.
2) The heat from this equipment creates a load that exceeds the building’s system’s design. This creates adverse conditions, such as; discomfort for the tenant, the risk that the equipment will operate outside its temperature limits and fail, and overall burden on the building’s air conditioning system. The above standard amount of heat rejected into the building’s “return air” system causes the air conditioning plant to use more power to cool the building and takes away from its overall capacity.