Submetering in Kentucky
Last reviewed by NES Editorial · September 2026
Kentucky allows water submetering at actual cost, with the PSC regulating the utilities and a drinking-water exemption for submetered properties. Here is how owners in Louisville, Lexington, and Northern Kentucky do it.
Submetering is common across Kentucky, 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 Kentucky rules, set by the Kentucky PSC, 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 Kentucky, with some restrictions.
The Kentucky PSC regulates the utilities themselves, and NES handles the submetered billing 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 Kentucky 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 Kentucky
- Water submetering is allowed in Kentucky, with residents billed for their measured usage
- The Kentucky Public Service Commission regulates the utilities themselves under Title 807 of the Kentucky Administrative Regulations (807 KAR Chapter 5), including meter accuracy and testing
- Kentucky's drinking water rules (401 KAR 8:020) exempt a submetered property from regulation as a public or semipublic water system when the owner charges residents no more than their share of the actual water bill, based on their actual usage
- Meters must be accurate, and the lease should disclose the billing terms and any administrative fees clearly
- NES tracks the current Kentucky 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: Kentucky PSC · 807 KAR Chapter 5 · 401 KAR 8:020 (submetering exemption)
General information only, not legal advice. Confirm current rules with the Kentucky PSC or a qualified attorney.
NES submetering by city in Kentucky
Local submetering guides for Kentucky communities NES serves.
Submetering in Kentucky
See what your Kentucky 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.