Utility Allowance Definition, Goals, and Objectives
The Utilities Allowance was created to set aside a portion of a service member's BAH to pay utility costs. This allowance will not eliminate out-of-pocket utilities expenses for all service members. However, a 10% buffer is added to the average monthly rate. Only service members who exceed this rate will incur out-of-pocket expenses. As a result, this process is designed to encourage energy conservation in accordance with federal and DoD policy objectives.
Roles and Responsibilities
Asset Managers are responsible for reviewing utility survey results, calculation methodology, and estimated allowance rates, as well as facilitating Air Force approval of the Utilities Allowance rates. Additionally, Asset Managers work with the Project Owner to communicate the Utilities Allowance process and energy conservation goals to service members. The AFCEE Portfolio Management Team provides training and information on the Utility Analysis process and will assist in dispute resolution if necessary.
Process and/or Metrics
Once a year, Utilities Allowances are calculated in the manner prescribed in the transaction documents. When new rental rates are placed into effect, the rental rate equals the service member's BAH less the Utility Allowance for their specific unit type. The Asset Manager provides the oversight to verify this process is in compliance with the project's transaction documents.
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