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Bulk Utility Savings Calculator

Bulk utility purchase cuts cost. This calculator sizes savings.

$
$
%

Annual savings

$29,040

Bulk cost with markup

$276,210

Individual cost baseline

$305,250

How the math works

Savings = individual cost − bulk cost with markup, where landlord captures intermediate spread.

On 1.65M kWh at a $0.03/kWh spread with 8% admin, the landlord captures ~$20k in admin/arbitrage while tenants pay ~$25k less than direct utility rates. Win-win, but requires sub-metering investment upfront.

How to Use

  1. Enter annual consumption kWh.
  2. Enter individual rate $/kWh.
  3. Enter bulk rate $/kWh.
  4. Enter admin fee markup %.
  5. Read annual savings.

Frequently Asked Questions

How bulk works?

Landlord takes master utility account. Negotiates block rate. Sub-meters individual tenants and re-bills. Markup covers admin + arbitrage. Tenant pays less than direct utility rate; landlord keeps spread.

Typical spread?

Electricity: 8-20% below direct utility rates achievable with bulk procurement. Gas: 5-15%. Water/sewer: usually straight passthrough without spread. Spread captured depends on market competition and commitment volume.

Compliance?

State PUC rules vary. Some states require submetering certification. Disclosure required in leases. Tenant rights to verify. Billing accuracy audit possible. Follow state-specific rules on sub-metering and pass-through structure.

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