Master metered gas conversion costs


#1

Does anyone have prior experience and a ballpark estimate for converting a master metered gas park to utility provider-owned and submetered? It’s for a park I’m looking at purchasing, where I’d want to avoid being in the utility business and the gas company has told me they’d be willing to provide a conversion estimate.

Thing is this might cause some sensitivity with the owner, so I’d prefer to do a ballpark feasibility analysis before scheduling a formal inspection and quote. Any ballpark ideas on a price/ft type basis?


#2

This is really dependent on the utility company. call them and see if they are willing to help out or want to make the conversion. if so tell them you would offer to pay for some of the conversion as well.


#3

Keith,
I’m currently in the process of working on this at one of my parks in Arkansas. The gas utility company is Black Hills Energy. When I have the estimate I can share that information with you. Send me an email so I can reply to you when I have it. krishodges86@gmail.com


#4

Thanks guys, appreciate the help


#5

Sub-Metered Gas:
We have sub-metered and billed tenants for their individual gas usage:
Ideally the municipal supplier will supply the meters; Often the capital expenditure (service lines and gas meters) is paid back to the municipal supplier over a period of years; Alternatively individual private service lines and individual meters can be purchased by the owner of the MHP; Most sub-metering services, like our company Southern Water Management, can supply the equipment and handle the tenant billing.

Before spending the effort on a through analysis, contact the the appropriate authorities for the regulations regard re-selling gas in your state and county, As you might have to register and abide to all of the regulations as a “full- blown” utility company

As always, We’re here to answer your sub-metering questions.


#6

@DanHelton. Thanks for the info! I’m glad to hear that municipal gas providers are sometimes willing to step in and help manage the capital expense. I’m still curious, what’s really their incentive for doing this? Are they incentivized in general to modernize the systems they supply? Are they concerned park owners might convert to predominantly electric systems within their parks?


#7

Keith,

In our experience, the gas company (city owned) removed the single main meter and installed and collected billing fees and base fess on every two units (54 apartments, one meter per stack (up and down stairs apartment)), the city financed the meters over a ten year period (as additional line item billed each month). The additional revenue to the city was @ $500 per month, compared to the single main meter. Obviously the owner in this case didn’t want the 26 additional meters; However he had just replaced all of the gas stoves so he had no choice but to continue with gas.

We bill the tenants based on the total 26 meters over the 52 apartments based on number of occupants each apartment. Noting the capitalized expense of the meters is not allowed to be billed to the tenants.

We’re here to answer your water sub-metering questions.

Sincerely,
Dan Helton
President
Southern Water Management
727-827-4509
Dan@SouthernWaterManagement.com
http://SouthernWaterManagement.com