Utility cost increase as AGI grounds — does this still work?

Yes, extraordinary increase in utility costs is one of the three AGI grounds under section 126 of the RTA. But "extraordinary" has a specific meaning:

**Test:** the utility cost increase must exceed the rent guideline plus 50%. So if the rent guideline is 2.5%, the utility cost must have increased by at least 3.75% to qualify.

**Calculation:** the increase is calculated on a per-unit basis using:
- 12-month average of utility costs before the increase
- 12-month average after the increase
- Difference divided across the units

**What you need:**
- 24+ months of utility bills (the 12-before and 12-after periods)
- Proof that the building is sub-metered or unit-metered if individual tenants are responsible for some costs (no double-recovery)
- An itemized breakdown showing each unit's allocated share

**Common rejection reasons:**
- Insufficient before-period data (less than 12 months)
- Utility use increased due to landlord-side changes (added EV chargers, etc.)
- Building has individual sub-meters and the landlord is double-charging

Utility-cost AGIs are simpler than capex AGIs and have higher approval rates (~75%) when properly documented.

VirtualPM Legal Shield handles utility AGI calculations + filings at the $199/month tier. Book a free 15-minute consult.