What is Submetering?

Submetering is a process where the supply of electricity comes into a master meter at bulk rate prices.  The owner of the property then submeters the electricity to individual housing units, i.e. apartments, condominiums, and tenants pay their own electric bill.  Tenants also control their own electric usage and are able to make conservation efforts and implement energy efficiency measures.

How Submetering Works?

Currently, residents in non-submetered multi-unit buildings (rental apartments, condominiums or cooperatives) pay for electricity through one of two ways- through master meter or direct meter service.

Residents pay for electricity as part of a monthly bill, but the bill is not itemized. The bulk buying rate is given to the owner of the building, but costs are distributed to residents based on shares owned or footage of the living space, not actual usage. Most residents would have lower bills if they paid for only the electricity they used.

Residents pay directly to the Utility for electricity at an individual residential customer rate. Residents can monitor and control their electricity usage but they cannot take advantage of bulk buying rates.

Submetered buildings get the bulk energy rate through a master meter and individual living units get individual meters (submeters) so residents can monitor and control energy use. With submetering, residents receive lower rates and only pay for the electricity that they use. In New York State the total charges cannot exceed the utility’s individual residential customer rate.

What are the Benefits of Submetering?

• Residents pay for only the electricity they use.

• Residents are more aware of their electric service costs and usage patterns and therefore are more likely to reduce their usage.

• Provides opportunities to promote energy efficiency efforts in New York State.

Who is Eligible?

• Multi-unit dwellings – rental apartments, condominiums, cooperatives

• Includes both master metered and direct metered buildings.

Key Components of Submetering Regulations

Following are key components of the New York State Public Service Commission's submetering regulations.  More detailed information is located here.

Commission Approval

There are two compliance review processes required for Commission approval before electricity can be submetered to bill residents for their individual use.

Notice of Intent to Submeter

• Expedited process with Staff review which would be approved and confirmed by an abbreviated Commission Order.
  
  
• Involves master meter to submeter conversions in existing buildings or new construction where electric heat is not used.

Petition to Submeter

• Comprehensive case-by-case review which would require a specific Commission Order.

• Involves direct meter to submeter conversions in existing buildings.

• Instances where the cost of electric heat will become the residents’ responsibility. The petition would need to demonstrate through one-year of shadow bills or based on a study of a similar building, 60 percent or more of the residents would benefit from submetering. Documentation of the installation of programmable thermostats will be required.

• New policies which would require Commission guidance or direction.

Resident Notice and Opportunity for Comments

• Specific requirements must be met to allow timely notice and an opportunity for interested parties to comment on a Notice of Intent to Submeter or a Petition to Submeter; individual notice must be provided to all residents:

• Before it is submitted for Commission consideration, with information on where and/or how they may review it.

• When it is submitted to the Commission, with information on how to provide comments to the Secretary to the Commission during a 45-day public comment period under the State Administrative Procedure Act.

• After Commission approval, at least 2 months must pass before actual billing for submetered electricity can begin.

• All information on a submetering proposal will be publically accessible at the Commission’s website, link to DMM, by entering notice or petition case number.

• Residents may file a petition for rehearing within 30 days after a Commission issues an Order approving submetering, if they demonstrate a good cause or reason which warrants Commission consideration.

Other Important Components

Consumer Protections - Home Energy Fair Practices Act

• Submetered residential customers have the same rights and protections that are available to utility customers under the Home Energy Fair Practices Act (HEFPA).

For more information on HEFPA or a copy of the HEFPA brochure, click here.

• Submission of a detailed HEFPA Plan is required for review.

• Annual HEFPA notification to all submetered residential customers required.

• Remedies may be imposed, including a rate cap reduction, if there are instances of noncompliance with HEFPA or a Commission Order.

Addressing Submetering Complaints

• Submeterers are required to file a dispute resolution process for residents with a complaint about submetered billing or service.

• Submission of a Submetering Identification Form is required to keep updated contact information to the submeterer or its billing agent.

• Submetered customers may also file a complaint with the Public Service Commission at anytime or if they are not satisfied with the resolution or response from the submeterer by

• Calling its HELPLINE at 1-800-342-3377.

• Accessing its website, here. 

• Visiting one of its Consumer Services Offices located at:

• 90 Church Street
  New York, New York 10007
• 3 Empire State Plaza
  Albany, New York 12223
• Ellicott Square Building
  295 Main Street
  Buffalo, New York 14203
  
  
  

Energy Efficiency

• Description of the electric energy measures that have been or will be installed.

• Documentation that refrigerators in rental apartments are not older than 10 years or meet recent federal energy efficiency standards.

Metering Standards and Practices

• Requirement for submeterers to comply with the same meter quality standards and testing procedures that exist for utilities to provide similar accuracy protections for submetered electricity customers.

• Provide access to verifiable and reliable information in resolution of customer complaints.

• Provide capability to terminate service for nonpayment of electricity charges, after all of the processes and procedures have been afforded under HEFPA.