The Army plans to begin billing privatized housing residents on some Army installations for excessive utility use, beginning on September 1.
Last year the Army began a one year mock billing program on five Army installations. The mock billing program established a baseline for electricity consumption through consumption patterns, housing type and size. This set the stage for charging residents for utility use above the baseline.
The installations where billing will begin are: Fort Carson, Colo.; Fort Hood, Texas; Fort Meade, Md.; Fort Lewis, Wash.; and Fort Campbell, Ky.
Congress passed the Military Housing Privatization Initiative in 1996, allowing the services to privatize family housing. Guidance published by the Office of the Secretary of Defense in 1998 required servicemembers in privatized housing to be responsible for the utilities they consumed.
Under the RCI program, more than 72,000 family housing units at 33 Army installations have been turned over to private developers. The companies manage the housing and collect rent through Soldiers’ Basic Allowance for Housing. In return, the companies provide property management services, renovate existing homes and build new housing.
Under the new billing program, residents who use less energy than what was established by their baseline will earn a rebate or credit. Those who exceed their baseline will be required to pay the difference. Residents should see their first bill on or around Oct. 1, 2006.
However, not all residents in privatized housing on these installations will be billed. Only those residents living in new and fully renovated houses will receive energy bills. These are the homes which feature Energy Star appliances, as well as additional insulation and energy-saving windows. Additionally, the majority of the older homes do not have individual meters, which would make gauging energy use very difficult.
But, according to Ivan Bolden, RCI Assistant for Policy and Program manager, once these older homes are fully renovated, they will be included in the billing program.
The billing program was established by the Department of Defense to conserve energy and track energy usage. Eventually all military branches will require residents living in privatized housing to be responsible for their energy use.
Dollars saved through conservation will mean more money for construction of new homes and community facilities at the installation; the savings will stay local.
“It’s all about providing quality housing for the Soldiers and their families and using our nation’s energy wisely,” Bolden said.

