A backup power system that provides electricity to critical building systems (elevators, fire pumps, emergency lighting, life safety systems) during utility power outages. Generator maintenance and fuel costs are common CAM expenses, while generator installation or replacement is a capital expenditure.
Emergency generators in commercial buildings are typically diesel or natural gas units sized to support life safety loads (fire pumps, emergency lighting, exit signs, fire alarm panels) and optionally elevator service. Code requirements under NFPA 110 mandate weekly no-load testing, monthly load-bank testing, and annual full-load transfer tests. Operating expenses include fuel, oil changes, coolant, battery replacement, and annual maintenance contracts. Generator replacement is a capital expenditure with a useful life of 20 to 30 years.
A landlord installed a new 500kW emergency generator costing $185,000, then passed the full cost through CAM as "emergency power maintenance." The previous generator was 25 years old. By disguising the replacement as maintenance, the landlord avoided amortizing the cost over the new unit's useful life.
Generator maintenance costs should be relatively stable year to year (typically $5,000 to $15,000 for a mid-size building). If you see a dramatic spike, request invoices. A new generator installation is a capital cost that benefits the building for decades and must be amortized, not expensed in one year.
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