AllynM (South Carolina)
Posts: 6
Posts: 6
Posted:
Can an HOA purchase then resale power to the individual homeowners?
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Electricity
Started by AllynM • 15 replies • 1439 views
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TimB4 (Tennessee)
Posts: 21,059
Posts: 21,059
Posted:
Perhaps and perhaps not. It will depend on what is authorized within your governing documents and applicable State laws (probably more on State laws).
However, if there is only one meter and the Association is to pay the electric bill, then the Association will need a method to assess members to pay the bill. Some will base this on the size of the unit, some may use individual meters that are read and maintained by the Association, some may simply divide the total cost evenly amongst all members. If this is what your Association is doing, the limitations on how this is to be done would/should be within your governing documents.
However, if there is only one meter and the Association is to pay the electric bill, then the Association will need a method to assess members to pay the bill. Some will base this on the size of the unit, some may use individual meters that are read and maintained by the Association, some may simply divide the total cost evenly amongst all members. If this is what your Association is doing, the limitations on how this is to be done would/should be within your governing documents.
BruceF1 (Connecticut)
Posts: 2,535
Posts: 2,535
Posted:
Quote:
Posted By AllynM on 01/03/2014 9:58 AM
Can an HOA purchase then resale power to the individual homeowners?
Can an HOA purchase then resale power to the individual homeowners?
Check with your state utility regulatory authority.
LarryB13 (Arizona)
Posts: 4,099
Posts: 4,099
Posted:
Quote:
Posted By AllynM on 01/03/2014 9:58 AM
Can an HOA purchase then resale power to the individual homeowners?
Can an HOA purchase then resale power to the individual homeowners?
Lotsa questions:
Why?
Condos or homes?
How many homes/units?
Are there meters in place already?
How will you determine what each owner will owe?
If meters must be read, bills prepared and/or payments processed, who will do that and what will it cost?
After factoring in all the costs associated with this, what will be the financial impact of this idea on each owner?
Will reselling power subject your association to state regulation?
TimB4 (Tennessee)
Posts: 21,059
Posts: 21,059
Posted:
Quote:
Posted By LarryB13 on 01/03/2014 10:18 AM
Lotsa questions:
Lotsa questions:
I think the main question is:
Is the Association reselling power or is there only one meter and the Association is simply assessing members so the electric bill can be paid?
AllynM (South Carolina)
Posts: 6
Posts: 6
Posted:
We currently have multiple meters but then asses as a whole. I was thinking maybe we could charge separately including a fee for doing this and bill based on usage.
AllynM (South Carolina)
Posts: 6
Posts: 6
Posted:
We currently have multiple meters but then asses as a whole. I was thinking maybe we could charge separately including a fee for doing this and bill based on usage.
AllynM (South Carolina)
Posts: 6
Posts: 6
Posted:
why? I manage a rental/building management resort. Ha a mouth full. It is actually owned by the HOA. Trying to come up with revenue streams for the HOA. 169 units one two and three bedrooms. Meters for each unit.
Santee cooper currently reads them.
Not sure about state reg.
Santee cooper currently reads them.
Not sure about state reg.
AllynM (South Carolina)
Posts: 6
Posts: 6
Posted:
why? I manage a rental/building management resort. Ha a mouth full. It is actually owned by the HOA. Trying to come up with revenue streams for the HOA. 169 units one two and three bedrooms. Meters for each unit.
Santee cooper currently reads them.
Not sure about state reg.
Santee cooper currently reads them.
Not sure about state reg.
TimB4 (Tennessee)
Posts: 21,059
Posts: 21,059
Posted:
Allyn,
My advice, get out of the power business and, since the units are metered separately, have the power company bill the members directly.
My advice, get out of the power business and, since the units are metered separately, have the power company bill the members directly.
BruceF1 (Connecticut)
Posts: 2,535
Posts: 2,535
Posted:
Quote:
Posted By TimB4 on 01/04/2014 3:26 PM
Allyn,
My advice, get out of the power business and, since the units are metered separately, have the power company bill the members directly.
Allyn,
My advice, get out of the power business and, since the units are metered separately, have the power company bill the members directly.
I agree. And, since you are considering charging more for the electricity than you pay for it, you may now be entering a profit-making enterprise and the tax liabilities that go with that, not to mention the added bookkeeping requirements and possible utility regulation requirements. It may be far more complicated than you realize.
JohnC46 (South Carolina)
Posts: 14,265
Posts: 14,265
Posted:
I did not read the OP to say there are individual meters per unit nor a master meter for all units.
I read it to say there are meters per building. Say 6 buildings, 4 units per building, 24 units, but only one meter per building (per 4 units. The association averages all the meters (6 meters) and bills each unit (24 units) an even share of the 6 meter billings. Am I wrong?
To the OP. The best would be individual meters per unit and the unit owner pay for it. Is this impossible?
LarryB13 (Arizona)
Posts: 4,099
Posts: 4,099
Posted:
Quote:
Posted By JohnC46 on 01/04/2014 4:11 PM
I did not read the OP to say there are individual meters per unit nor a master meter for all units.
I read it to say there are meters per building. Say 6 buildings, 4 units per building, 24 units, but only one meter per building (per 4 units. The association averages all the meters (6 meters) and bills each unit (24 units) an even share of the 6 meter billings. Am I wrong?
To the OP. The best would be individual meters per unit and the unit owner pay for it. Is this impossible?
I did not read the OP to say there are individual meters per unit nor a master meter for all units.
I read it to say there are meters per building. Say 6 buildings, 4 units per building, 24 units, but only one meter per building (per 4 units. The association averages all the meters (6 meters) and bills each unit (24 units) an even share of the 6 meter billings. Am I wrong?
To the OP. The best would be individual meters per unit and the unit owner pay for it. Is this impossible?
John,
You may be responding to the wrong thread. The OP here stated that they have 169 units (not 24) and all units are individually metered (not master metered).
SteveM9 (Massachusetts)
Posts: 3,699
Posts: 3,699
Posted:
Quote:
Trying to come up with revenue streams for the HOA. 169 units one two and three bedrooms. Meters for each unit.
So each unit has its own meter, and you want the HOA to charge for electricity instead of the electric company?
Thats just about the craziest idea I've ever heard. Especially since its not your meter, lines, etc. Its owned by the electric company.
This conversation is over before it even started.
LarryB13 (Arizona)
Posts: 4,099
Posts: 4,099
Posted:
Quote:
Posted By AllynM on 01/04/2014 8:46 AM
Trying to come up with revenue streams for the HOA.
Trying to come up with revenue streams for the HOA.
Most HOA's derive their revenue from assessments paid by the members. Why is that not sufficient in this case?
JohnB26 (South Carolina)
Posts: 1,569
Posts: 1,569
Posted:
OP:
NO they are NOT permitted to resell power.
NO they are NOT permitted to resell power.
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