What are the benefits of submetering an apartment community?

When residents pay for what they actually use, they cut back. Most properties see 15 to 30 percent lower water use. Daily reads also catch leaks early, and common-area water stops getting spread across everyone's rent. Payback usually lands within 12 to 18 months.

Is submetering legal in Tennessee?

In most of the state, yes. Tennessee has no statute specific to submetering, so the lease governs how residents are billed. An owner billing only its own residents is not a utility "dedicated to the public use" under Tenn. Code Ann. § 65-4-101(6)(A), so no TPUC certification is needed. Memphis is the exception: NES does not offer submetered or RUBS billing in MLGW's service area, whose service policy allows only at-cost apportionment with the utility's consent. Elsewhere, what matters is that the lease sets out the billing method and any administrative fee before residents are billed, and that bills show measured usage clearly. NES sets that up and keeps it consistent.

Who regulates submetering in Shelby County?

Tennessee has no submetering-specific statute, so submetering water, gas, and electric is governed by the lease and general contract law. Utility service itself in Shelby County falls under the Tennessee Public Utility Commission. NES tracks the current Tennessee and local requirements for your address, so billing is set up to match the rule.

Who provides water and utilities in Shelby County?

Water, electricity, and natural gas across much of the area are provided by Memphis Light, Gas and Water (MLGW). NES works with whichever provider serves your property and supports owner-side metering equipment and usage data across the Memphis area.

How much does it cost, and what is the ROI?

Most submetering installs pay for themselves within 12 to 18 months through the utility cost you recover. We'll run the numbers on your actual master-meter bills and unit count, then send you an estimate. You are not signing anything.

Will I be locked into NES equipment?

No. NES installs nonproprietary meters that other companies can read, The meters are yours, and extended warranties are available if you want one.

Submetering Apartments in Shelby County, Tennessee

Memphis does not allow submetering or RUBS billing for water, electric, or gas. NES reviews your Shelby County property's utility costs, confirms what the rules allow for your address, and sets up compliant billing where it is permitted. Get a free consultation.

Get a free bid (800) 572-7060

Privately owned since: 1968Privately owned since
States served: 43+States served
Typical utility savings: 15-40%Typical utility savings
In-house support: BilingualIn-house support

NES handles water, gas & electric submetering for apartment communities, condominiums, and mobile home parks across Shelby County and the Memphis area. Here that means metering equipment, usage data, and consultation, handled in-house since 1968.

Submetering billing is not allowed in Memphis, Tennessee.

The City of Memphis does not allow submetering or RUBS billing for water, electric, or gas. Elsewhere in Tennessee the lease governs, and NES confirms what applies to your exact address before anything is installed.

What we submeter

Water & sewer
Per-unit water and sewer metering with 24-hour leak alerts.
Natural gas
Gas meters on each unit, read and billed the same way as water.
Electric
Electric submetering on nonproprietary meters you own.

Rules & compliance

Submetering rules & laws in Shelby County

Governing rule: lease terms · no submetering statute

Tennessee state rules

Tennessee has no submetering-specific statute, so submetering water, gas, and electric is governed by the lease and general contract law
Memphis is the exception: NES does not offer submetered or RUBS billing in MLGW's service area. MLGW's service policy limits any assignment of utility service to the exact amount of the bill and requires its consent before any sub-metering
An owner billing only its own residents is not a utility "dedicated to the public use" under Tenn. Code Ann. § 65-4-101(6)(A), so TPUC certification does not apply
The lease should state the billing method, what is charged, and any administrative fee, before a resident is billed for it
Residents should be billed for their measured usage, with the charges and meter readings shown clearly on the bill
Local utilities set their own service rules, and NES verifies those for your address

Local Shelby County requirements

Water, electricity, and natural gas across much of the area are provided by Memphis Light, Gas and Water (MLGW)
Memphis does not allow submetering or RUBS billing for water, electric, or gas, so NES does not set up resident utility billing inside the city
NES can still review your utility costs, check recovery options, and confirm the current Memphis rules for your property
Communities outside the Memphis city limits, including Bartlett, Germantown, Collierville, and Millington, follow state rules, where the lease governs
Tennessee rules change from time to time. NES keeps track and updates your billing when they do.

How NES keeps you compliant

Tracks every Tennessee and local rule that affects your property
Handles rate registrations and required filings
Keeps audit-ready billing archives
Manages tenant disclosures and meter testing

See how NES handles compliance

Official sources: Tennessee Public Utility Commission · Tenn. Code Ann. § 65-4-101 (definitions) · MLGW Service Policy Manual (2025), sections 2.6 and 25.5

General information only, not legal advice; NES assumes no liability for reliance. Confirm current rules with the Tennessee Public Utility Commission or a qualified attorney.

Why owners in the Memphis area use NES

Per gallon. Residents pay for what they actually use.
15-30%. Lower utility consumption.
Under 24 hr. Leaks flagged the same day.

What happens after you call

Step 1
Free assessment
We review your master-meter bills and unit count, then model what you would recover. There is no charge for this.
Step 2
Install meters
We install nonproprietary meters at each unit. The equipment is yours, and other companies can read it.
Step 3
Read & detect
Daily reads pull usage automatically and flag leaks within 24 hours, before they run up a bill.
Step 4
Data & support
We deliver usage data and reporting, and consult on your utility cost recovery options, in English and Spanish.

Real NES results

140-home community, New MexicoWater & sewer

$264 / yr

owner's annual water and sewer cost, down from $26,400

Before submetering$26,400 / yr

After submetering$264 / yr

The owner had been absorbing the whole master-meter bill. After metering each home, residents paid for what they used. Figures from NES property records.

130-home park, TexasWater & sewer

$6,600 / yr

annual water and sewer cost, down from $120,000

Before submetering$120,000 / yr

After submetering$6,600 / yr

The park also gained more than $113,000 in annual revenue once each home was billed for its own use. Figures from NES property records.

Real NES properties. Results vary by property, utility rates, and resident mix.

Submetering in nearby Tennessee cities

NES installs and runs submetering across Tennessee. See the rules and results for other communities we serve.

Free assessment

Get a free bid for your property

Tell us about your Shelby County property and we’ll respond within one business day.

or call us directly: (800) 572-7060

Privately owned since 1968
Nonproprietary meters, no lock-in
In-house bilingual support
No long-term contracts

Common questions