A bill for an act
relating to energy; providing for and regulating shared-metered utility service in
residential buildings; amending Minnesota Statutes 2022, sections 216B.022;
216B.098, subdivision 6; 504B.285, subdivision 4; Minnesota Statutes 2023
Supplement, section 216B.172, subdivisions 1, 2; proposing coding for new law
in Minnesota Statutes, chapters 216B; 504B; repealing Minnesota Statutes 2022,
section 504B.215.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Minnesota Statutes 2022, section 216B.022, is amended to read:
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(a) For the purposes of this section and sections 216B.023
and 216B.024, the following terms have the meanings given.
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(b) "Landlord" has the meaning given in section 504B.001, subdivision 7. Landlord
includes a third-party billing agent.
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(c) "Nonresidential building" means a building that is not a residential building.
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(d) "Shared-metered residential building" means a residential building with multiple
separate living units where the building's utility service is measured by fewer meters than
there are separate living units. Shared-metered residential building does not include a
manufactured home park.
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(e) "Submeter" means a meter that is owned by a landlord and installed by the landlord
or by a third-party billing agent or other agent and that measures utility service consumed
solely within an individual living unit in the shared-metered residential building.
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(f) "Tenant" means a person who is occupying a living unit in a residential building
under a lease or contract, whether oral or written, that requires the payment of money or
exchange of services, and all other regular occupants of that unit.
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(g) "Third-party billing agent" means a person or entity other than the property owner
that performs one or more utility management services at a shared-metered residential
building on behalf of a landlord that include but are not limited to installing submeters,
reading submeters, or handling utility billing and collections.
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(h) "Utility provider" means a public utility, a municipal utility, or a cooperative electric
association providing utility service.
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(i) "Utility service" means natural gas and electricity.
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(a) A landlord who
has installed submeters in a shared-metered residential building is subject to the commission's
authority under this chapter.
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(b) On or after January 1, 2025, all submeters installed by a landlord to measure utility
service must meet standards established by the American National Standards Institute.
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(c) All submeters, regardless of when they were installed, must accurately measure utility
service.
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Nothing in this chapter grants the
commission or a public utility the authority to limit the availability of submetering to a
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meter which measures the total electric energy delivered to the building.
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(a) If a tenant notifies the landlord in writing that the
tenant suspects the submeter is incorrectly registering the tenant's utility service and includes
an explanation for the suspicion, the landlord must promptly initiate an investigation to
determine whether the submeter is inaccurate. If the submeter is found to be inaccurate, the
landlord must either repair or replace the submeter or inform the tenant in writing why no
corrective action is believed necessary.
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(b) If the inaccurate submeter has resulted in an overcharge, the landlord must promptly
refund the difference between what the tenant paid and what the tenant would have paid if
the submeter correctly registered the tenant's utility service.
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(c) If the inaccurate submeter has resulted in an undercharge, the landlord may bill the
tenant the difference between what the tenant paid and what the tenant would have paid if
the submeter correctly registered the tenant's utility service for a period not exceeding the
previous six months. Any undercharge the landlord seeks to collect must be recovered in
accordance with section 216B.023, subdivision 8.
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(d) If a tenant has notified the landlord that the tenant suspects the tenant's submeter is
incorrectly registering the tenant's utility service, as provided in paragraph (a), and the
landlord has failed within a reasonable time to check the submeter and provide the tenant
with the results of a meter test showing the submeter is accurate, the landlord is prohibited
from recovering from the tenant any undercharge for the period between the date of the
tenant's notification and the date the submeter was checked.
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A landlord is prohibited from charging to or collecting from
tenants any administrative, capital, or any other expenses associated with the installation,
maintenance, repair, replacement, or reading of submeters, unless the expense is due to the
tenant's willful, malicious, or negligent conduct.
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(a) Where utility service is submetered, bills for utility service
provided by landlords to tenants must be based on actual submeter readings. Where natural
gas service is apportioned, billing for the service must comply with section 504B.216,
subdivisions 5 and 6.
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(b) Landlords are prohibited from billing tenants who are submetered or whose natural
gas service is apportioned less frequently than the landlord is billed by the utility. Landlords
must include in the lease or, if there is no written lease, provide a written statement at the
outset of the lease term, notification of when utility bills will be issued.
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(c) Bills rendered by landlords to tenants for submetered utility service must include, at
a minimum, the following information:
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(1) the present and last preceding submeter readings;
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(2) the date of the present reading;
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(3) the rate or rates, including peak and off-peak rates, at which the utility service is
being billed, the amount of the service billed at each separate rate, and the rate at which the
landlord is being billed by the utility provider for the utility service;
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(4) any administrative charge charged in accordance with subdivision 4;
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(5) the tenant's portion of taxes and surcharges;
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(6) if any, the portion of any bill credit the landlord received from the utility provider