Submetering plays a crucial role in fair and transparent utility billing for multi-unit properties. However, navigating state regulations surrounding submetering estimations can be quite tricky if you’re not careful. So we’ve come up with a simple guide to help you avoid violations and stay compliant.
California: Offers a detailed breakdown for both RUBS (Ratio Utility Billing System) and submetering estimations.
- RUBS estimations are limited to one month, followed by a “true-up” on the next bill.
- Submetering estimations for non-transmitting meters allow charges based on a 3-month average (excluding fees) but with limitations if there’s insufficient data.
Colorado and Connecticut: Align with the regulations established by their respective provider tariffs.
Florida: While the state itself has no regulations, specific cities like Miami-Dade and Margate limit estimations to one month based on previous or subsequent usage by the same resident or corresponding periods from prior years.
Louisiana: Uniquely, water and sewer charges must be bundled with rent, prohibiting separate billing.
Maine: Allows estimations under exceptional circumstances (extreme weather, equipment failure) or if access to the property is unavailable despite reasonable efforts.
Massachusetts: Prohibits estimations altogether.
North Carolina: Limits adjustments arising from estimations to a maximum of six months.
South Carolina: Allows one estimated bill within a 60-day period if the meter can’t be read or malfunctions.
Texas: Estimation is allowed for one month, but the bill must be clearly marked and the next bill must reflect adjustments.
Washington: Certain cities, like Seattle and Auburn, permit estimations only if the utility provider performs the estimation with a subsequent “true-up” upon receipt of the actual reading.
Wyoming: Relies entirely on the provider’s tariff for estimation regulations.
How to Stay Compliant
Because submetering estimation regulations vary significantly across states, sometimes even counties, do your due diligence to familiarize yourself with the specific rules in your area to ensure compliance.
Here are some additional tips:
- Consult your state’s Public Utility Commission (PUC) website.
- Review your submetering provider’s contract or tariff.
- Clearly mark estimated bills and communicate the reason for estimation to tenants.
- Prioritize obtaining actual meter readings whenever possible.
Understanding submetering estimation mandates can feel overwhelming. However, with this knowledge, you can navigate regulations with confidence and ensure fair and accurate billing for your property and tenants. Remember, staying compliant is essential to avoid legal issues and maintain a strong relationship with your residents.
