Submetering in Colorado
Last reviewed by NES Editorial · September 2026
Colorado allows submetering and caps resident bills at the utility's actual cost, with most billing fees not allowed and new metering rules for buildings permitted on or after July 1, 2027. Here is what owners need to know.
Submetering is common across Colorado, and NES runs it end to end. We install nonproprietary meters that you own, read them every day, pay the master-meter bill, and bill your residents. Our compliance team tracks the Colorado rules, set by the Colorado PUC, so your billing holds up if anyone ever checks it. NES has worked this way since 1968, in more than 43 states.
Yes. Submetering is allowed in Colorado, with some restrictions.
Owners cannot bill residents above the utility's cost, and NES handles the requirements for you.
What submetering is
Submetering puts a meter on each unit and bills residents for the water, gas, and electric they actually use. The idea has been around since the 1920s. Today’s meters read wirelessly every day, so usage is accurate and leaks show up fast instead of on the next bill.
Why owners in Colorado submeter
- Residents pay for what they use, so water consumption usually drops 15 to 30%.
- Leaks are caught within a day, not at the end of the month.
- Common-area usage is measured and billed accurately, not absorbed by the owner.
- Most installs pay for themselves within 12 to 18 months.
Submetering laws and rules in Colorado
- Residential water, electric, and gas submetering are allowed in Colorado, and utilities cannot be provided to residents at a profit
- Under Colorado's price transparency law (HB 25-1090, effective January 1, 2026), residents cannot be billed more than the actual amount the utility charges
- Administrative or billing fees on resident utility bills are generally not allowed in Colorado, and shared or common-area utility costs must be excluded from what residents are allocated rather than passed through
- Where the lease provides for it, a limited billing fee is allowed on a utility the owner is billed for by a third party: 2% of the billed amount or $10 per month, but not both (C.R.S. 38-12-801(3)(a)(VI))
- Colorado leases must disclose how utilities are billed to residents
- For residential premises with building permits applied for on or after July 1, 2027, RUBS billing is not allowed, and each unit's gas, electric, and water service must be metered either by the utility or by a submeter (C.R.S. 6-1-737(4.5), added by HB 26-1013, effective March 26, 2026)
- Electric and gas service is provided by regulated utilities such as Xcel Energy or municipal utilities, overseen by the Colorado Public Utilities Commission
- Residents are billed for their measured usage, and the bill must show the water billing information
- NES tracks the current Colorado requirements so your property stays compliant
Local rules can vary by city and county, and some cities set their own requirements, which NES verifies for your exact address.
Official sources: Colorado PUC · Colorado General Assembly (HB 25-1090) · HB 26-1013 / C.R.S. 6-1-737(4.5) (RUBS conditions, 2027 metering rule) · City of Boulder Rental Licensing
General information only, not legal advice. Confirm current rules with the Colorado PUC or a qualified attorney.
NES submetering by city in Colorado
Local submetering guides for Colorado communities NES serves.
Submetering in Colorado
See what your Colorado property can recover.
Send us your master-meter bills and unit count. We’ll run the numbers on your actual property and reply within one business day with a clear, no-obligation estimate.