# Submetering in New York City

Source: https://submeter.com/submetering-nyc/
Publisher: National Exemption Service (NES), https://submeter.com. Last reviewed September 2026.

What New York City and state rules require before you can submeter and bill residents.

## What are the rules for submetering in New York City?
Submetering is common in New York City multifamily buildings, but it comes with rules you have to follow. To submeter electricity in New York, the owner must petition the New York Public Service Commission and be authorized first under 16 NYCRR Part 96. Residents cannot be charged more than the local utility's rate, and billing has to follow the Home Energy Fair Practices Act, which sets out resident protections. For water, the city's Department of Environmental Protection has its own permit and metering requirements. The point of all of this is to keep billing fair and transparent. NES handles the petition to the Public Service Commission and sets up billing to match every local, state, and federal requirement. We focus on properties with 80 or more units, so we are set up to manage the paperwork and the rollout for large New York buildings.

## Electric submetering: get authorized first
In New York you cannot start billing residents for electricity until you are approved. The owner has to petition the New York Public Service Commission and be authorized under 16 NYCRR Part 96 before any submetering begins. Once authorized, you cannot charge residents more than the local utility's rate, and your billing has to follow the Home Energy Fair Practices Act. NES prepares and files the petition so you are not navigating that process alone.

## What NES handles in New York
- Files the Public Service Commission petition for electric submetering
- Sets up billing that follows the Home Energy Fair Practices Act and the utility-rate cap
- Installs and reads meters, then bills residents for their own usage
- Tracks the city and state rules so your building stays compliant

## Questions
**Can I submeter electricity in New York City without approval?**
No. You must petition the New York Public Service Commission and be authorized under 16 NYCRR Part 96 before you bill residents for electricity. NES handles that petition for you.

**Can I charge residents more than the utility rate?**
No. New York rules cap what you charge at the local utility's rate, and electric billing must follow the Home Energy Fair Practices Act. NES sets up billing to stay within those limits.