6.9.1 Methods for Underwriting Owner’s Utility Costs Changes

A. For existing properties with energy conservation measures included in the Repair Escrow, underwritten utility expenses based on the prior three years of operating history may be adjusted based on the utility cost results of the repairs and alterations as documented in an ASHRAE Level II Energy Audit. The savings (or possible increases) estimated must be for specific utilities or fuels and for the specific uses of these utilities or fuels. For example, forecasted reductions and/or increases in electric consumption must be detailed for each repair, replace, or add-new action that impacts electric usage. When the net of these itemized increases or decreases in usage is converted to dollar costs given the local per unit cost of the utility, only these net costs may be used to offset (or increase) historic costs for electric power. (See Section 6.9.3 below on obstacles to determining utility price per unit of use.) In cases where the alterations and repairs alter the mix and use of owner-paid fuels or utilities, (e.g., gas heat replaces electric heat; or solar hot water replaces or supplements an existing fuel for water heating), the altered and/or substituted mix and cost of fuels must be shown in the calculation of utility cost used to adjust comparable historic costs. It is not sufficient merely to claim a net change and adjust the aggregate historic utility cost. The specific change derived from each repair, replace, or add-new action must be shown.