Legal Term

EV charging station installation contract utility fee pass-through

Legal Definition

A contractual provision in an agreement for the installation and operation of electric vehicle (EV) charging stations, which obligates the property owner or tenant to reimburse the installing party (often the landlord or a third-party provider) for certain utility costs incurred to power the stations. These costs are 'passed through' from the utility provider's bill directly to the responsible party, typically calculated based on actual metered usage or a pro-rata share of the building's total utility load.

In Plain English

A clause that says the person or company paying for the EV charger's electricity gets to bill you for the exact cost of that power, plus sometimes a small admin fee, so they don't lose money on the electricity you use.

Example in a Contract
**Section 4.2: Utility Cost Pass-Through.** Tenant shall be responsible for 100% of the electrical utility costs attributable to the operation of the EV Charging Stations installed on the Premises. Landlord shall provide Tenant with monthly invoices for such costs, supported by copies of the utility bill and submeter readings for the EV Charging Stations, if available. In the absence of a dedicated submeter, Tenant's share shall be calculated by multiplying the total utility bill for the Building by a fraction, the numerator of which is the total kilowatt-hours (kWh) consumed by the EV Charging Stations during the billing period (as estimated by the Charging Network Provider's reporting system), and the denominator of which is the total kWh consumed by the Building during such period. A reasonable administrative fee of 3% may be added to cover billing and processing costs.

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