Earlier this week, Duke Energy provided power to P.E.A.C.H. Apartments in Chapel Hill to allow the developer to run air conditioning units to prevent mold and mildew from taking hold. Triple-digit temperatures and high humidity are forecast for next week, which would create ideal conditions for mold and mildew growth.
The energy company had previously refused to run power to the apartments for low-income residents, citing the developer’s decision to use a single meter for billing purposes, according to a consumer complaint the developer, EMPOWERment Inc., filed with the North Carolina Utilities Commission.
EMPOWERment Inc. Executive Director Delores Bailey had expressed concern about the potential damage mold and mildew could cause to the 10-unit affordable housing complex while Duke Energy and the nonprofit work out differences about the meter.
Delores Bailey (Photo: EMPOWERment Inc.)On Friday, Bailey was hopeful that Duke and her organization will soon reach a permanent settlement about the single meter so that tenants can begin moving in August or September at the latest. EMPOWERment Inc., decided to use one meter for the entire apartment complex to accommodate rooftop solar panels and to reduce energy costs for low-income residents who would rent the apartments.
“Duke has set up the power on a single meter, which is what we asked in the complaint,” Bailey said.
Now that the power has been turned on, Bailey said EMPOWERment Inc.’s contractor, Focus Design Builders, can put the finishing touches on the project, which is more than 85% complete.
The remaining work consists mostly of “punch list” items such as making sure appliances are working and water is running properly, Bailey said. Outside, there is some landscaping and grading left to do, she added.
“They’ve (contractors) have got to come back and do a cleanup of the units and make them livable construction-wise,” Bailey said.
The disagreement between Duke and EMPOWERment Inc., stemmed from differing interpretations of a state law prohibiting master meters for electric and natural gas service in new residential buildings. One section of the law outlines an exception to the prohibition if the tenant and landlord agree in the lease that the cost of the electric service or natural gas service, or both, will be included in rental payments. North Carolina has generally required individual meters and service in tenants’ names for each unit in new residential building constructed on or after Sept. 1, 1977.
Bailey previously told NC Newsline that electric bills would be paid by tenants in monthly rent payments under lease agreements between the nonprofit and tenants. The amount charged would depend on the number of bedrooms in the apartment, she said.
Duke Energy told NC Newsline last week that it cannot comment on specific customers’ accounts. But did provide a statement in an email from spokesman Jeff Brooks:
“Duke Energy service regulations, in compliance with North Carolina law, require residential units to have individual meters, no one master meter covering the entire building. These guidelines are in place to promote consistency in the quality and reliability of service to all customers.”
Rewiring the units so that each has a meter would have cost the nonprofit about $86,000, Bailey said. “We don’t have that,” she said last week. It would take three-to-six months to receive the parts needed to rewire the apartments if the nonprofit decided to go that route, she said.
The Southern Environmental Law Center filed the complaint on behalf of the nonprofit.
EMPOWERment Inc., asked the state Utilities Commission for the following relief:
Require Duke connect electric service to EMPOWERment’s P.E.A.C.H. Apartments immediately, while the Commission considers this Emergency Complaint and Request for Declaratory Ruling, to prevent the risk of irreparable harm and health risks from the lack of essential electric service. Order that Duke permit the use of “master” meters when the lease between landlord and tenant states that the cost of electric and/or gas utilities is included in rental payments, as set forth in G.S. § 143-151. 42(b)(2). In the alternative, declare that a multifamily residential building is eligible to use a single “master” meter, with the Commission’s approval, when served by a solar array. Require Duke to provide permanent electric service to the P.E.A.C.H. Apartments under the current single-meter configuration. Read More Details
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