How Does Electric Submetering Work in NYC?

Residential Regulations

On December 18, 2012, the New York State Public Service Commission revised the rules on how landlords sell electricity and offered consumer protections to submetered residents in a residential building (including condominiums, cooperatives and rental buildings).

For owners, the most first question is whether they can make a profit from submetering their residential tenants. The rules state that landlords can charge residents up to, but not more than, the direct metered utility rate for electricity.

Commercial Regulations

Local Law 88 in New York City is now in effect. This regulation requires all large commercial buildings (greater than 50,000 square feet) to install sub-meters for its tenants who lease at least 10,000 sq. ft. by Jan. 1, 2025.

LL 88 does not require the landlord or building manager to charge a tenant for electricity based on the readings of the installed sub-meter; it may continue to just charge the way it has done so in the past. However, the sub-meters must be in place by then and tenants informed monthly of actual electricity usage. The landlord can decide how it installs sub-meters, whether install all of them at once, although that may be a bit disruptive of tenant operations, or as space is available (as each tenant moves out).

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