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Old 08-07-2014, 07:12 PM   #11 (permalink)
 
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Re: Power Billing Issues After Buyout

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Originally Posted by eurobronze View Post
Great advice, guys! I have put in an official dispute and am requesting the readings and a meter check. What a nightmare. Almost $10,000 just to change ownership of a power account...I would never have imagined it would be so difficult or such a racket.
Oh yeah, getting your lights turned on is one of your biggest expenses, getting power to equipment is also a big deal.
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Old 08-07-2014, 10:32 PM   #12 (permalink)
 
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Re: Power Billing Issues After Buyout

Once you give them $$$ you will not get it back as fast as you gave it .....
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Old 08-08-2014, 09:55 AM   #13 (permalink)
 
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Re: Power Billing Issues After Buyout

The power company we use will waive the deposit if you sign up for auto-drafts on your monthly bill.
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Old 08-08-2014, 03:32 PM   #14 (permalink)
 
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Re: Power Billing Issues After Buyout

I think it was the demand charges.They occur based on a billing cycles highest demand.Say the total kw demand was 100 kw and it was 10 $ a kw.They will bill that peak demand charge for each billing cycle.Weather it be 8 days or 30 days.This is how they charge for delivery of electricity on accounts with more than ,say 50kw(in my case).

So that is 1,000 for delivery,per billing cycle.

Look at your bill.The demand charges are listed separately.
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Old 08-08-2014, 07:17 PM   #15 (permalink)
 
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Re: Power Billing Issues After Buyout

A small possibly is once you changed the meter it was changed to a smart meter
which could have much higher billing rates. But If this is your first commercial
account with the power company it's just the way it's done. I wouldn't lose any sleep
over it.
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Old 08-12-2014, 06:12 PM   #16 (permalink)
 
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Re: Power Billing Issues After Buyout

Quote:
Originally Posted by eurobronze View Post
I purchased an existing salon recently and, upon transferring ownership of the power account from the old company to my company, was told I needed to put down a $5,000 deposit. This was based on the two highest months of power at that location regardless of the fact that the history was based on someone else's account. I argued against the amount, but paid it anyways to ensure there was no lapse in power while the business is operating.

The old account was canceled in the 3rd week of the monthly billing cycle so the old owners received a bill for those 3 weeks for ~$2,000. Now we've received the first bill on my new account which covers the remaining 8 days of that monthly billing cycle. Our bill was also for $2,000! In the entire 14+ year history of the salon in that location a monthly power bill has NEVER been more than $2,300. With these two bills covering the entire month (a 4 week period), the total is just over $4,000.

When I called the power company to inquire about how it was possible to use the same amount of power in 8 days that we typically use in an entire month, they told me something must have spiked our power in that eight day stretch after they reset it to zero when the account was changed over. I find that hard to believe. They suggested it had something to do with "all the build-out and equipment changes". I told them absolutely nothing has changed aside from the name of the owner on the business documents. No new equipment, no tenant improvements.

Has anyone else had a similar issue? Is there a way to resolve this without shelling out more? This is a city owned utility and it's costing me close to $10,000 just to change ownership of the power account.
This is unusual but it points out that when purchasing an existing salon the terms of purchase include that all security deposits transfer to the new owner and are not applied to final payment. Another reason to get assistance when evaluating purchasing an existing salon. With proper assistance you will save money on the purchase price and also not experience surprises like this.

There are so many things that are not typically addressed when buying a salon. Did you include in the purchase that the roof and HVAC be inspected by a company of your choice at the sellers or landlords expense? Did you make stipulation as to responsibility for roof and old HVAC equipment? If not they may be an issue later.
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Old 08-26-2014, 02:51 PM   #17 (permalink)
 
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Re: Power Billing Issues After Buyout

Well I disputed it and after escalating the complaint past the Utilities Manager (who had the gall to tell me she was the final authority on the matter), she acknowledged the outrageous billing. Part of her email:

"...However I do understand your frustration about the high bill for 8 days of service. I believe that your demand would have been close to the same for a 30 day period as it was for the 8 days billed. I will take your case up with my Director to see if we can adjust the demand charge for the bill in question to reflect 10 kW rather than the 116.98 Kw."

So she brought the matter to the Director of Public Works and the next day I received this email:

"Ms. Holy,

I discussed the circumstances of your account with the Director of Public Works/Utilities and we have come to the understanding that though the demand was used the small number of days of the first bill did warrant an adjust to the account of $1,778.61 leaving a balance of $370.84 to be paid for the billing period ending 06/20/2014. The due date on this bill was 08/07/2014, I will hold it from receiving a penalty and extend the due date to Monday, August 11th.

Feel free to contact me should you have any further questions.

Thank you"

Ha! After telling me over and over that it was a justified billing and that the billing stood they agreed it was so "justified" that they would adjust it down by almost $1,800. Just goes to show that you should never take no for an answer!

Also--Steve, the previous owner's account was so old that I was told there was never a deposit required for it when the account was originally opened so there was nothing to transfer to me.

Lesson learned. Thanks for the advice, all!
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Old 08-26-2014, 03:49 PM   #18 (permalink)
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Re: Power Billing Issues After Buyout

Well done!
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Old 08-26-2014, 10:48 PM   #19 (permalink)
 
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Re: Power Billing Issues After Buyout

If some how the meter get crack ,the power company will come out and replace. Also you can put a Kilowatt meter install on the breaker to measure the kilowatts used.
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