Owners of retail and other commercial buildings are slowly realizing the benefits of shopping for new electricity providers.

        AES NewEnergy, a Cinergy competitor, estimates the owner of a typical 150,000-square-foot retail strip can save $1,000 a month by switching providers.

        Real-estate brokers would do well to learn about incentives offered to commercial and industrial users who switch — possible cost-savings tips that can be passed on to clients, said Bob Korandovich, AES NewEnergy Inc.'s Ohio business leader.

        Mr. Korandovich, addressing the Cincinnati chapter of Commercial Real Estate Women, said many users are still examining whether a switch in electricity providers is right for them.

        “Anything users can do to fix a price allows them to lock in their operating costs,” he said.

        Key to potential cost savings is a “shopping credit” given to the first group of customers who switch providers, he said.

        Ohio's electricity deregulation law mandates that at least 20 percent of each utility's commercial and industrial users switch power suppliers by 2004.

        To ensure that users switch, Cinergy offers incentives for the first 20 percent in each class (industrial or commercial) that switch. The typical commercial customer gets a shopping credit of 4.8 cents a kilowatt hour. Credits are reduced after the 20 percent mark is reached.

        Those credits allow alternative providers such as AES to lock in customer rates for up to five years — depending on user needs.

        Customers shopping for a new provider, however, should be cautious. Ask whether a provider offers fixed or variable rates per kilowatt hour and whether there are any special fees.

        Electricity costs can vary depending on time of day or season.

        A major concern expressed by potential customers is whether the source will be reliable, Mr. Korandovich said.

        Cincinnati businesses shouldn't assume California's electricity crisis will be repeated in Ohio, Mr. Korandovich said. He blames the Golden State's power woes on price caps and a lack of power-plant construction.
       

Mount Adams site tied up in litigation

               A 30-acre chunk of prime real estate at the base of Mount Adams — sought by Towne Properties for a possible condo project — is tied up by another lawsuit.

        Sawyer Place Co. filed a Hamilton County Court of Common Pleas action, alleging other partners froze it out of the two-phase development.

        The first phase was the high-rise Adams Place condo project along the Ohio River. The second phase is planned as condos on an adjacent 30-acre lot. SPC, a limited partner for the development project, claims it was shut of both development phases.

        Attempts to find financial and other information about the first- phase condo sales were stymied by its development partner, Benenson Capital Co., the lawsuit states.

        It also said it's being shut out of Benenson's plan to sell the adjacent 30 acres to Towne Properties.

        SPC and its president, George Stewart, have asked the court to issue a $10 million judgment against Benenson and its affiliates.
       

Duke-Weeks draws tenants to north

               Duke-Weeks Realty Corp. recently signed a handful of leases at two major office buildings north of Cincinnati.

        Duke-Weeks roped its first tenant for the 164,000-square-foot Pfeiffer Place office in Blue Ash. Indianapolis-based Haverstick Consulting, an insurance company, signed a 12,000-square-foot lease, said Duke-Weeks' Ken Schuermann.

        Thomson Learning will expand its space at Deerfield Crossing, taking an additional 30,000 square feet for a total of 130,000. Global Crossing also leased 5,000 square feet at the Duke-Weeks building in Warren County.
       

Xpedx consolidates its accounting services

               Xpedx, a division of International Paper, will consolidate accounting services in Sharonville.

        The Covington-based distribution firm will relocate employees from eight locations — including a Reading Road facility and International Paper's Hamilton office. The move won't include employees at the company's RiverCenter headquarters in Covington. Xpedx's new office will be at Ed Neyra's Park 42 complex.

        Michele Laumer of Carey Laumer Commercial Realty represents Park 42. The Staubach Co.'s Jerry Momper and Bo Bandura represented Xpedx.

        Ken Alltucker covers commercial real estate for The Enquirer. Have news? Call him at (513) 768-8384, e-mail kalltucker@yahoo.com or fax 768-8340.
       

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