Forest City residents will be responsible for any electricity consumed on and after January 1st. All residents must sign a new tenant lease by the 1st. Contact your Forest City Resident Services Manager for more information at 839-8600.

FREQUENTLY ASKED
QUESTIONS

September to December 2010 - Mock Billing Phase:
Residents will receive mock bills for four months before actual billing occurs. The mock bill for the month of September will arrive in mid-October. During mock billing, residents will not be responsible for paying any bills nor will they receive rebates. Residents have four months to assess their monthly usage as compared to the monthly average and monthly usage band, and make adjustments as necessary.

How does this program work?
The PPV partnership - Navy Region Hawaii (NAVREGHI) and Forest City Residential Management (FCRM) – are conducting a "mock billing" period from 1 September 2010 to 31 December 2010. During this period, you will receive a monthly mock bill that shows your electricity consumption for the past month, compared to the average electricity usage for all homes similar to yours. Your first bill will arrive around 15 October 2010 for the period of 1-30 September 2010. During this "mock billing" period you will not be responsible for any overages on your mock bill or qualify for any rebates. You should make sure you understand how much electricity your family is consuming, and adjust your energy usage if necessary. Live billing will begin with the month of January 2011 and you will receive actual invoices. You will be responsible to pay for usage above a "normal usage band" and will begin accruing credit for refunds if you use significantly less than the normal usage band. FCRM will issue you a rebate check when your accrued credit exceeds $15. You may choose to defer the rebate and apply any credited amount towards future payments.

Why did the Navy and PPV Partners decide to start RECP after all these years?
In September 1998, OSD set forth policy for the payment of utilities in PPV housing to encourage a reduction in energy consumption.  In support of the Secretary of the Navy's energy initiatives, the RECP represents the Navy's next step toward the full implementation of the OSD policy for PPV housing. Implementing RECP now rather than earlier enabled us to complete the initial development phase of most of our housing projects, installation of individual home electric meters, and to learn from the Army's experience on their version of this program.

Who benefits from the cost savings from resident utility conservation?
Current and future residents of the Public-Private Venture project benefit from savings realized through utility conservation. The savings go into the operations, maintenance and long term reinvestments in the homes and neighborhood. After covering operations and maintenance, the remaining operating income monies are deposited into Reserve Accounts managed by the Department of Navy and Forest City Military Communities as Joint Venture owners of the project. These reserve funds are created for reinvestment into the project neighborhoods to ensure the homes are adequately maintained over the life of the project. In other words, sailors and their families are the primary beneficiaries from utility conservation because it's their homes and neighborhoods that get maintained and improved over time.

How do Residents and their families benefit from the RECP?
First of all, careful conservation of resources through less energy consumption contributes to our nation's security and readiness, and takes better care of our fragile ecosystem. Dollars saved through conservation will be put right back into the PPV project in the form of capital reinvestments such as new housing, renovations, community amenities, etc. Residents will earn rebates if they conserve more electricity than amounts identified in a normal usage band.

How is the average utility usage determined for my home?
FCRM established "like-type" groups of homes based on neighborhood, and each home's size and number of bedrooms. Each month, FCRM will read the utility meter to determine actual consumption for each home and then calculate the average amount of electricity used by homes in your group that were occupied for the entire month. The top and bottom 5% of utility consumers within your "like-type" are removed for purposes of calculating the average. The average electricity usage is then calculated for your group. This like-type group utility usage average will be your target. A 20% plus and minus buffer is established around this average to allow for variances in the homes and in family size and demographics. The result is a "normal usage band", where most resident consumption should occur.

So when live billing starts in January 2011, I will only owe money if I use more electricity than this normal usage band, versus the average usage amount for my type of home, right?
Right! Each month, when a monthly average is calculated for your type of home, a 20% buffer is added to the average to establish the upper buffer of the normal usage band. You will only pay for electricity used above and beyond this upper buffer.

What if there is an extremely hot summer/cold winter?
Your electricity bill is based on the process of determining the average usage for neighbors in your like- type group. If your group uses more electricity because it is hot, the group’s average usage for the month will be higher, and the 20% buffer zone will be higher as well. The same principle applies during cold weather.

How will this program affect my Basic Allowance for Housing (BAH)?
There will be no impact to the BAH allowance.

How can I learn more about what BAH covers?
Go to http://www.defensetravel.dod.mil/perdiem/BAH-Primer.pdf 

Why do I have to pay for electricity when it is included in my rent?
Your rent is equal to your Basic Allowance for Housing (BAH).  The BAH is computed based on three local price data points: (1) median current market rent, (2) average utilities (including electricity, heat, and water/ sewer), and (3) average renter’s insurance.  In other words, your rent pays for typical utility usage.  The Department of the Navy is implementing the Office of the Secretary of Defense policy to establish a reasonable range of average electricity consumption, which is defined as the average usage for your group of homes with a 20% buffer added above and below the average.  You are required to pay only for the excess electricity used beyond what is covered in your rent, and will receive a credit whenever you save electricity beyond the 20% buffer zone. If your utility use is within the 20 percent buffer, you will have no out-of-pocket utility expense.
 
Will the buffer ever change from 20%?
The 20% buffer will be in place for the entire pilot period that will run through 31 December 2011.  The plan is to evaluate the program results and then decide how to proceed.

Are they going to lower our rent to offset the cost of the "electric bill"?
No, your rent amount will not change.  Your rent (BAH) covers normal utility usage.  The intent of the program is for residents to pay for any excess electricity usage.

This program seems like a pay cut.
For those who choose to use electricity above the normal rate +20% this may feel like a pay cut.   BAH includes a portion for normal utilities.  If a family chooses to exceed that amount, there will be an additional payment required; but at the same time if a family chooses to conserve, a rebate is equally possible.

How does billing work?
First there will be a "mock billing" period to educate you about your consumption compared to the allowance for your home. After that period ends, you will receive an actual invoice. Depending on your consumption for the month, this invoice will show that you have a credit, have to pay the balance due, or have no charge, and will indicate when you will be issued a rebate check or when you need to submit payment of the balance.

Does this program mean I have to pay an electric bill every month?
During the mock billing period, you will receive a mock bill that shows you how much electricity you used during the past month, and how much you would owe or be owed. During the live billing period starting on January 1, 2011, you will receive an actual bill. Your January bill is the first bill where you will only pay for electricity if you have EXCESS usage, in other words, you used more electricity than the normal usage band, as explained in a previous FAQ.

Why do we have to wait until the 15th of the month to get our electric bill?
It takes time for the utility billing company to gather the readings, calculate the average, print the bill, and mail it to you. 

Is there a grace period for new residents arriving after January 1st?
Yes, there is a three-month grace period.  Residents arriving on or after January 1, 2011 will receive three months of mock billing before going live.

How and when will I expect a rebate?
Residents whose monthly utilities cost is more than 20 percent below the monthly usage band will earn a credit or rebate that will be payable by check when the amount owed exceeds $15. Residents can elect to roll-over savings credits to apply against charges they may accrue in future months.

How do I know that my bill is correct?
Your bill will show the actual usage for the period based on
information received from your individual home utility meter. If you feel there are inaccuracies on your bill, please contact your Resident Services Manager for review.

What happens if I don't pay on time? Will late payments affect my credit?
Residents with a past due account will receive up to three late notice letters from the billing company on 15-day intervals. Since utility bills will be a component of rent, the failure to pay utility bills will be treated as delinquent rent as per your lease. Please refer to your lease on how delinquent rent is treated and for specific actions that will be taken by your property manager for payment delinquencies. If you don't pay your bill, one consequence may be that your lease may not be extended. Finally, late payments could affect your credit.

What is the electric rate that will be used to charge us for electricity?
Residents will be charged the same rate that Forest City is charged by the Navy. For Oahu residents, the FY2010 rate through September 30, 2010 is $0.20388/kWh; the rate will drop to $0.19566 on October 1, 2010 for FY2011. The rate for Kauai residents for FY2010 through September 30, 2010 is $0.40792/kWh; the rate will increase to $0.42053/kWh on October 1, 2011 for FY2011.  The Navy (NAVFAC) purchases its power from the Hawaiian Electric Company in bulk and pays a much lower rate for electricity than consumers living downtown.  The rate will be identified in your bill. 

Am I responsible for water and gas bills?
At this time, the energy conservation efforts focus on electricity. Although water and gas are not included at present, we encourage all personnel to conserve all types of utility usage.

If this is a Department of Navy program, do I have to participate if I'm in another branch of Service?
All residents of FCRM, regardless of branch of Service must sign a lease that requires the resident pay for electricity usage.

How can I reduce my monthly electricity usage?
You should check your home for inefficiencies such as windows or blinds that do not close properly and let air escape. Talk to your family members about how they can help to save energy by doing little things like unplugging unused electronics and chargers. Additional TVs or sound systems add to your usage. Additional conservation tips follow:

Air Conditioner

• Keep filter clean. Changing filters at least monthly will help your air conditioner run most efficiently
• Make sure air intake registers are unobstructed
• Set thermostat no lower than you are actually comfortable
• On cooler, breezy days open windows and let the breeze cool your home
• Never run air conditioner with windows and doors open
• If you home has a programmable thermostat set it higher (78-80 degrees) for times you will not be home, lower upon return. Use manually adjusted thermostats the same way

Appliances

• Smaller appliances should be unplugged when not in use: rice cookers, slow cookers, toasters and blenders, coffee makers, irons, etc.
• Blow dryers, electric shavers, other bathroom appliances should be unplugged when not in use
• Wash and dry only full loads of laundry. Using coldest settings optimizes conservation
• Use dishwasher for full loads only. Use air dry feature instead of heat dry feature
• Minimize the time your refrigerator door remains open

Electronics

• Use power strips for electronics. Turn off power strip when not in use
• Turn off TV's, stereo systems, gaming systems, computers and other electronics at the power strip when not in use
• Unplug cell phone chargers when not in use

Water Heater

• Solar water heaters have timers. Make sure your timers are set to efficiently utilize the sun for heating water

Lighting

• Study and adjust your family's lighting needs. Turn off all unused lights
• Take advantage of daylight by opening blinds in N and E facing windows during the day
• Replace incandescent bulbs with CFL bulbs. Permanent light fixture CFL bulbs for your home can be obtained from Forest City Self Help locations on Nimitz Road and Pearl City. If you use personal lighting such as floor lamps, those bulbs can be purchased from any store including the mini-marts

Will you post the like-type groups so everyone can see who is in their group?
Yes.  Like-type groups for your neighborhood are available for viewing at your Resident Services Office.  Keep in mind that these groupings will be continually analyzed during the mock billing period, thus the listings could change during this period.  

What went into the decision to implement this program all at once?  Why not implement only for new residents as they arrive?
Participation by all residents is important for the like-type group concept to be effective.   The program is expected to work best if all residents engage in the same level of energy conservation awareness at the same time.

What was the basis for throwing out 5% of the high and low users, versus using a standard deviation?  Five percent is not statistically significant.
The top and bottom 5% are thrown out precisely because they are not typical of the remainder of the population and in that sense are not statistically significant.  The top 5% consist of very high users who either have very unusual electrical usage requirements or have been indifferent towards conservation.  The bottom 5% are often made up of families who have not been home for all or a significant portion of the month.  These are often spouses of deployed sailors who elected to stay with other family members while the service member is deployed.   We think the fair way to establish the group averages is to exclude these statistical outliers.  Residents in the top and bottom 5% aren’t used to calculate the average, but they will still receive a bill just like other residents. 

I have a higher rank than my neighbor so I pay more rent than he does for the very same house.  Why should I have to pay for using more electricity like he does?
Department of Defense policy requires PPV partnerships to determine a reasonable utility allowance and must charge residents for excess usage. Normal usage is not based on rank but on the size of the home, type of home, etc. Two residents of different ranks living in similar homes are expected to use similar amounts of electricity. Just because one is more senior to the other does not give them a higher electric allowance.

We have more children living in our three-bedroom house than our neighbors who also live in a three bedroom house.  How will this affect my overall bill compared to my neighbors? Am I exempt from paying more?
The size of a family is definitely proportional to the family’s cost of living.  However, other than bedroom assignment, family size is not a factor in determining RECP baselines, just as it isn't a factor for determining Basic Allowance for Housing (BAH).  Members of the same rank receive the same housing and utility allowance regardless of whether they have no children or many children. To avoid excessive electric usage, large families must be more conscious of their usage habits.  Here in Hawaii, service members with larger families do receive a higher Cost of Living Allowance (COLA) that may help address this. The mock billing period should help you and your family learn just how much electricity you use compared to your neighbors living in a similar house, and implement energy saving tips as necessary. 

I live in a historic house.  What is Forest City going to do about making our homes more energy-efficient?                                        
Forest City has a long-range operating budget that addresses initiatives to improve energy inefficiencies in all homes.  There are a few limitations when working on historic homes due to historic preservation rules.  For the short-term, Forest City has assembled a home assessment team and has begun contacting residents starting with the highest energy consumers listed on their  July 2010 consumption data.  The team is offering to visit these homes and take a look at possible reasons in the home that might be contributing to the high consumption.  They will also use this opportunity to discuss with the resident possible behavioral reasons for the high consumption.  From a billing standpoint, please keep in mind that your monthly electric bill is based on a comparison of your home only to similar homes that have the same efficiencies and inefficiencies as yours. 

I heard some Forest City homes have a programmable thermostat.  Can I have one installed in my home?  Yes.  Most Forest City homes are already provided with programmable thermostats. Residents can program them to turn their air-conditioners on only during certain hours or to set the temperature higher at night or when they are not at home. Forest City is converting all older programmable thermostats with newer models which limit the lowest possible setting to 72 degrees. This was a joint Navy Region Hawaii-Forest City decision unrelated to the RECP. The temperature-limiting thermostats support the Navy’s energy conservation program and parallel the temperature restrictions on office and administrative facilities, although the minimum home temperatures are substantially lower than that in office environments.

Am I being charged for the electricity used by the streetlights in our courtyards?
No.  There is a meter on your home that captures the electricity used solely by your home.

My home doesn’t have any energy efficient appliances, so how can it be equitably compared with other homes in my like-type group?  Will Forest City come and replace them with energy efficient ones?
Some like-groups do have a mixture of homes that either have or do not have energy rated appliances.  The average electricity usage for each group will factor this in, plus there is a 20% buffer zone to address these differences.  Appliances are replaced with when they are no longer serviceable or have reached the end of their useful life. 

Will Forest City have a checklist when it visits my house or will I have to request a visit for a specific item?
Yes, Forest City will have a checklist that ensures a thorough review of your home.

Can I install a ceiling fan our bedroom?  I am qualified to do this. 
Forest City cannot allow residents to be installing their own permanent fixtures to these homes. 

Is Forest City going to come and clean the A/Cs before this study starts?  My A/C was clogged and no one told me how to clean it.
Forest City will continue their preventive maintenance and service call program.  Please call them for any maintenance issues to prepare your home for the RECP billing to start in January.

Are there two air conditioner filters in my house to change monthly?
Many homes have two, but not all.  Please contact your Resident Services Manager to get more information.

The tips on mock billing encourage residents to use ceiling fans; however, some homes are not equipped with fans in every room.  Will Forest City be installing ceiling fans everywhere for everyone?
Unfortunately, cost limitations prohibited ceiling fans being installed in every room.  Forest City will continue to consider installing more fans as it implements its neighborhood improvement plans.

Our home gets hot in the kitchen when we cook.  Are there any plans to install ACs in the kitchen area?
There are no plans at this time to add additional air conditioners to any homes.

Why can’t we have a clothesline in our back yard?  It would really help us save energy.Residents may request permission to install a clothesline using the standard modifications request form.  The Resident Services Manager will review the request and may authorize installation subject to certain limitation of type of clothesline, location of clotheslines, and other reasonable restrictions.   Please keep in mind each neighborhood is different (size of backyards, visibility to others), etc.), and there are some limitations in historic neighborhoods.

The second story bedroom in my house above the garage is very hot.  The room needs a solar fan or something to let out the hot air.
Please call the maintenance office so they can evaluate the problem.

I saw contractors trimming trees in our neighborhood.  What will Forest City do about the fact that we have less shade and therefore a greater need to run our air conditioners more?
The trees are trimmed regularly to keep the neighborhood safe and to maintain the trees in a healthy state. Although reducing the amount of shade may affect the air-conditioning load of the homes, since the work is performed throughout the neighborhood, all homes will be similarly affected.  Differences in levels of shading from one home to another are accounted for by the 20% buffer zone.

Will I need to sign a new tenant lease?
Yes, a new six-month lease is required in order to properly transfer utility payment responsibilities from FCRM to you. Information is forthcoming about lease signings to occur starting in November with a lease effective date of 1 January 2011. Leases will automatically convert to a month-to-month lease after the initial six-month period.

Regarding the new lease I will be signing, why do I have to sign a lease that locks me in for six months from January 1, 2011 to June 30, 2011?  I’ve already lived in my home for six months under my current lease.
A 6-month lease is the standard term that was agreed to between the Navy and Forest City. It benefits residents by protecting them from early termination of the lease. At the same time, it benefits the property manager as it provides stability and reduces vacancy fluctuations.

Are there any allowances for a resident to break the six-month lease?
The lease allows residents to break their initial six-month lease if they (1) receive permanent change of station orders, (2) receive temporary duty or deployment orders in excess of 3 months, (3) are discharged from active duty, (4) are purchasing a home, or (5) in the case of death. The lease also allows residents to break their lease during their initial 6-month period for any reason not specified above if they provide Forest City with 28-days notice and agree to pay a $250 fee to cover costs to clean and re-rent the home.
I have been on Forest City’s wait list to move into a different neighborhood.  However, if I sign the new six-month lease and a house becomes available during the six-month period, will I be restricted from moving? Forest City will include the time the resident has lived in its Navy PPV home, including any period under the previous lease, in determining whether a resident is eligible for the voluntary relocation program.

Are there any other changes in the new lease besides RECP that I should know about?Forest City and the Navy are currently discussing some changes to the partnership agreement. These discussions may result in changes to non-RECP parts of the lease. One of the changes being discussed relates to rules and restrictions regarding the possession and storage of firearms.

When will the new lease be available for me to review, and will an electronic version be provided so I can email it to my spouse who is deployed? 
The new leases will be made available as soon as they have been approved by the Department of the Navy. They are currently being reviewed in Washington, DC, and we expect their comments shortly.

What kind of Power of Attorney will Forest City need for lease signing, and what happens if my spouse is already deployed and he didn’t sign a POA before he left?
Either a General or Special Power of Attorney is acceptable; however, you should check with your legal office before choosing either.  Your legal officer may advise you to limit the delegation of authority through a Special Power of Attorney. If your spouse is already deployed, he or she should have access to legal services at the deployed location.

Since a new six-month lease is required with an effective date of January 1, 2011, doesn’t it give residents a “free out” to move out between now and January 1st?
Yes.  Virtually all residents are currently on a month-to-month lease, and may terminate their lease by providing Forest City with a 28-day notice. A few residents may be on longer-term leases which expire on or before December 31, 2010.

When I sign the new lease, I will be asked about receiving credits from Forest City and I will have to elect whether to receive a credit whenever it reaches $15 or to carry-over the credits month-to-month.  I understand I will only be able to change this election once a year.  Why do I have to wait a whole year to change this election?
Based on resident feedback, residents will be allowed to change their election up to two times in any 12-month period. For example, a resident signs a lease today and elects to get credit amounts paid by check. Tomorrow, he changes his mind and tells Forest City that he wants to just carry over the credit balance forward on his account. This resident may make one more change over the next 364 days.

Is there a waiver policy if a member in my family has a medical circumstance that requires us to use more electricity?
Yes, a waiver from the RECP can be requested if your family member is enrolled in the Exceptional Family Member (EFM) program and you can provide justification on how the medical circumstance has a direct result on excessive usage of electricity. For information on the waiver process, click on the tab at the Main Menu entitled "Waiver Policy Based on Medical Reasons"

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