Submetering in Tennessee
Last reviewed by NES Editorial · September 2026
Most of Tennessee has no submetering statute, though Memphis does not allow submetering or RUBS billing. Here is what owners need to check first.
Submetering is common across Tennessee, 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 Tennessee rules, set by the Tennessee Public Utility Commission, 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 Tennessee, and is governed by the lease.
Tennessee has no submetering statute, so the lease governs, and NES makes sure your billing terms are clear and defensible.
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 Tennessee 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 Tennessee
- 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 rules can vary by city and county, and some cities set their own requirements, which NES verifies for your exact address.
Official sources: Tennessee Public Utility Commission · Tenn. Code Ann. § 65-4-101 (definitions)
General information only, not legal advice. Confirm current rules with the Tennessee Public Utility Commission or a qualified attorney.
NES submetering by city in Tennessee
Local submetering guides for Tennessee communities NES serves.
Submetering in Tennessee
See what your Tennessee 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.