Texas Submetering - Must Read Before You Submeter in Texas

Texas Submetering Regulations

Submetering in Texas is regulated by the Texas Public Utilities Commission (PUC). Unique among states with submetering regulations, Texas limits billing fees to 9 percent of the resident utility charges. Other regulated states limit fees to a specific dollar amount or set a reasonableness standard.

Texas has established a detailed, comprehensive regulatory framework. Key elements of the Texas submetering and utility billing regulations are summarized below.

For more information about the Texas regulatory environment, please contact our Regional Sales Manager, Mark Mathis, at (512) 772-4672 or email Mark at mmathis@guardianwp.com.

Leases

Effective September 1, 2014, all new leases and lease renewals are to include as an attachment a copy of the Texas submetering rules.

The lease agreement must contain (1) a clear written description of the method of calculation of the submetered or non-submetered master metered utilities for each unit and (2) a statement of the average unit monthly bill for all units for the previous calendar year.

Mark-Ups Prohibited

Property owners may not impose additional charges on the tenant in excess of the charges imposed on the owner (billing fees and late fees excepted).

Fees

The Texas Public Utility Commission has caps billing fees at 9 percent of the utility charges. Late fees capped at 5 percent.

Ratio Utility Billing System (RUBS)

Texas allows RUBS for water and electric.

Refuse Service

Billing of refuse service is not regulated in Texas.

Record Keeping

The Texas Public Utility Commission requires specific records to be maintained and made available to tenants during normal business hours. These records include utility consumption in each unit, the charges assessed by the retail public utility and the allocation of the utility costs to the tenants or home owner, in the case of condominium communities, for the previous calendar year.

Disclaimer

The information presented above is meant to be used as a general guide to the state’s submetering regulatory environment. It is not intended to be used as legal advice in the conduct of business within the state.

Please see reference sources below. Subchapter H Section; §24.122 - Rental Agreements Subchapter H; §24.124 - Charges and Calculations Subchapter H; §24.125 - Billing Subchapter H; §24.127 - Submeters or Point-of-Use Submeters and Plumbing Fixtures. Texas Water Code, Chapter 13, Subtitle B Water Rights Title 16, Texas Administrative Code, Chapter 24 Water and Sewer Rules Tenant Guide to Allocated Service Texas PUC Water and Sewer Submetering Texas Water Code, Chapter 13, Subtitle B Water Rights Title 16, Texas Administrative Code, Chapter 24 Water and Sewer Rules Tenant Guide to Allocated Service Texas PUC Water and Sewer Submetering

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