Submetering in Texas
Last reviewed by NES Editorial · September 2026
Texas regulates submetering closely through the PUCT, from registration to what each bill must show. Here is a plain-English walkthrough.
Submetering is common across Texas, 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 Texas rules, set by the PUCT, 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 Texas, with some restrictions.
It is regulated by the PUCT, 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 Texas 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 Texas
- Water and sewer submetering falls under the PUCT, in 16 TAC Chapter 24 (Subchapter I)
- Owners must register with the PUCT before billing residents for water and sewer; electric billing currently requires no PUCT registration, and gas billing requires none
- Every submeter must be tested for accuracy before service, and all units must use the same unit of measure
- PUCT rules set how charges are calculated and what each resident's bill has to show
- RUBS (allocated) billing for water and electricity must use PUC approved formulas
- Owners may add a surcharge of up to 9 percent on submetered water and sewer charges, and late fees are capped at 5 percent
- No administrative fee is allowed on electric billing; on gas, an administrative fee of up to $3.00 is allowed on submetered gas only and must be disclosed in the lease
- Water and wastewater submetering rules moved from the TCEQ (30 TAC Chapter 291) to the PUCT in 2014. Electricity submetering has its own PUCT rules.
- Plus other PUCT requirements that can apply, which NES tracks as they change
Local rules can vary by city and county, and some cities set their own requirements, which NES verifies for your exact address.
General information only, not legal advice. Confirm current rules with the PUCT or a qualified attorney.
NES submetering by city in Texas
Local submetering guides for Texas communities NES serves.
Submetering in Texas
See what your Texas 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.