Colorado Will Require Individual Utility Meters in New Apartments and Condos
If you build or own apartments or condos in Colorado, a new state law will change how utilities are metered in your next project. Here is what the law says, when it starts, and what it means for owners and developers.
What the new law requires
Colorado enacted legislation (House Bill 26-1013) on March 26, 2026, which will require installation of individual water, gas, and electric meters in all newly constructed apartments and condominiums. The requirement is scheduled to take effect on July 1, 2027, and will require installation of either submeters or meters provided by the utility supplier.
In plain terms, each unit in a new building will need its own way to measure how much water, gas, and electricity it uses. Owners can meet the rule in one of two ways:
Utility meters: the local utility installs a meter for each unit and bills residents directly.
Submeters: the property installs its own meter for each unit, and residents are billed for what they actually use.
The rule applies to new residential buildings that apply for permits on or after July 1, 2027. If you have projects in design right now, that date is closer than it looks. Plans drawn today may not be permitted until after the deadline.
Colorado joins a growing list
Colorado has joined the ranks of other states and localities that require individual water metering. Those include California, Texas, and parts of Florida, North Carolina, New Jersey, and certain property types in New York City.
The direction is clear. More places are moving away from splitting one big utility bill across every unit and toward billing each household for what it uses.
Why individual metering matters
Studies have shown that when apartment and condominium residents are directly responsible for their own usage, utility consumption typically drops by as much as thirty percent.
That makes sense. When the water bill is buried in the rent or split evenly, there is little reason to fix a running toilet or cut a shower short. When residents see their own numbers, they pay attention.
For owners, that can mean:
Lower total utility use across the property
Fairer bills, since residents pay for their own use and not their neighbors'
Leaks and problems spotted sooner, since unusual use shows up at the unit level
Utility costs that no longer come out of operating income
What about existing buildings?
The metering requirement is for new construction. Existing properties that use Ratio Utility Billing Services (RUBS) or submetering will be permitted to continue using these methods. But the law adds rules for properties that bill this way:
Residents can't be billed more than the property's total utility charges.
Common area costs, like a pool or clubhouse, have to be taken out first.
Markups are limited.
The billing method has to be clearly spelled out in the lease.
For some existing communities, submetering may be the simpler option. Each unit is billed for what it actually uses, so there is no formula to explain or defend.
Plan ahead for 2027
If you are building apartments or condos in Colorado, now is a good time to:
Decide between utility meters and submeters for upcoming projects.
Build meter locations and hardware into your plans early.
Choose a submetering partner before construction starts.
Work with Guardian Water & Power
Guardian Water and Power has a forty-three-year track record of efficiently providing water, gas, and electric submetering services to apartment and condominium communities throughout the United States.
Please contact our sales department at 877-291-3141 ext. 5 to request an installation and service proposal.
