Minn. Stat. § 216B § 216B.023

SHARED-METERED RESIDENTIAL BUILDINGS; BILLING; CONSUMER PROTECTIONS.

In Force
Verified 10/26/2026 · Next check 11/2/2026
effective 9/30/2026MinnesotaSubmetering

Operative Text

Minn. Stat. § 216B § 216B.023
Subdivision 1.Billing requirements for submetered service.
(a) If utility service is submetered, utility bills provided by landlords to tenants must be based on actual submeter readings. If natural gas service is apportioned, landlords must comply with section 504B.216, subdivisions 5 and 6.

(b) Landlords are prohibited from billing submetered tenants or tenants whose natural gas service is apportioned less frequently than the landlord is billed by the utility. Landlords must include in the lease, or provide a written statement at the outset of the lease term, notice of when utility bills will be issued.

(c) Landlords must include the following information on each submetered utility service bill:

(1) the present and last preceding submeter readings;

(2) the date of the present reading;

(3) the rate at which the utility service is being billed, the amount of the service billed at the rate, and the rate at which the landlord is being billed by the utility provider for the utility service;

(4) the tenant's portion of taxes and surcharges;

(5) if any, the portion of any bill credit the landlord received from the utility provider that is credited to the tenant;

(6) any administrative billing charge, as provided in subdivision 4;

(7) the total amount of the bill; and

(8) the date by which payment is due; the date after which, if the bill is not paid, a late payment charge may be imposed; and the amount of the charge, if any, as provided in subdivision 6.

Subd. 2.Separate billing for electricity.
(a) A landlord who bills a tenant separately from rent for electricity service (1) must not apportion the service; (2) must comply with this section, section 216B.022, and applicable provisions of section 504B.216; and (3) is subject to section 216B.024.

(b) A landlord who submeters electricity must:

(1) charge only for the electricity used in the tenant's unit, calculated by multiplying the kilowatt-hours used during the billing period, as measured by the submeter, by the rate charged to the landlord by the utility provider. A landlord must not charge a tenant for electricity consumed in common areas or in spaces used exclusively or primarily by the landlord;

(2) charge a tenant only for the tenant's pro rata share of nonusage charges, calculated by dividing the charges the landlord is billed by the utility provider equally among the number of units in the building; and

(3) deduct from a tenant's total bill the tenant's pro rata share of any bill credits or adjustments received by the landlord on the bill from the utility provider by dividing the credit or adjustment equally among the number of units in the building.

Subd. 3.Separate billing for natural gas.
(a) A landlord who submeters natural gas service must bill tenants according to the methodology described in subdivision 2, paragraph (b), and comply with:

(1) subdivision 1, paragraph (c);

(2) section 216B.022; and

(3) applicable provisions of section 504B.216.

(b) A landlord who submeters or apportions natural gas service (1) must comply with subdivisions 4 to 8, and (2) is subject to section 216B.024.

Subd. 4.Administrative billing charge.
A landlord who bills separately from rent for utility service may impose an administrative billing charge, as provided in section 504B.216, subdivision 8. No other fees or charges may be imposed on or collected from tenants for utility service, except as otherwise provided in subdivision 6 and section 216B.022, subdivision 5.

Subd. 5.Billing errors.
(a) If a billing error occurs that has resulted in an overcharge, the landlord must promptly refund the difference between what the tenant paid and what the tenant would have paid but for the error.

(b) If a billing error has occurred that has resulted in an undercharge, the landlord may bill the tenant for the difference between what the tenant paid and what the tenant would have paid but for the billing error, for a period not exceeding six months. Any undercharge must be recovered in accordance with subdivision 8.

Subd. 6.Late payment charge.
A late payment charge may be imposed as provided under section 504B.216, subdivision 9. No other fees or charges may be imposed on or collected from tenants for utility service, except as otherwise provided in subdivision 4 and section 216B.022, subdivision 5.

Subd. 7.Payment plans.
A landlord must offer a payment plan for overdue utility service bills. The plan must be reasonable and take into account the tenant's financial circumstances and any extenuating circumstances that are voluntarily disclosed by the tenant. If the landlord and tenant cannot agree on a mutually acceptable payment plan, the landlord must inform the tenant of the right to seek assistance from the commission's consumer affairs office in resolving the dispute and provide the tenant the office's current telephone number and email address.

Subd. 8.Undercharges.
A landlord must offer a payment plan to tenants who have been undercharged if no culpable conduct by the tenant or member of the tenant's household caused the undercharge. The agreement must cover a period equal to the time over which the undercharge occurred or a different time period that is mutually agreeable to the tenant and the landlord. No interest or delinquency fee may be charged as part of a payment plan under this subdivision.
Source: Legislative text reproduced verbatim
Plain English

Minn. Stat. § 216B.023 governs how landlords in Minnesota must bill tenants for submetered or apportioned utility services. It requires that bills be based on actual submeter readings, issued at least as frequently as the landlord is billed by the utility, and include detailed line-item information such as meter readings, applicable rates, taxes, credits, and due dates. The law also sets rules for correcting billing errors, limits permissible fees, and requires landlords to offer payment plans for overdue or undercharged amounts.

Written by anthropic/claude-sonnet-4.6 · Reviewed on September 30, 2026

Plain English — not legal advice.

For Property Managers

Operators of residential buildings with submetered utilities must structure their billing practices to comply with Minn. Stat. § 216B.023, which means issuing bills no less frequently than the utility bills the landlord, and including all required line items on each statement. Landlords generally document submeter readings, pass through only allowable charges, credit tenants for any bill credits received from the utility, and promptly refund overcharges. When undercharges occur, compliant operators offer a payment plan covering the period of the undercharge, without adding interest or delinquency fees.

General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.

For Tenants

Under Minn. Stat. § 216B.023, tenants receiving submetered utility bills have the right to itemized statements, timely billing, and refunds for any overcharges. If a landlord and tenant cannot agree on a payment plan for overdue bills, the tenant has the right to seek assistance from the Minnesota Public Utilities Commission's consumer affairs office. Tenants who believe their landlord is not following these billing rules may contact a tenant-rights organization or the commission's consumer affairs office to explore available options.

General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.

Generated September 30, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.

Effective Timeline

Current
Sep 30, 2026
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References Out

Rules and statutes cited by this regulation

Minn. Stat. § 504B.216
Not yet ingested
Minn. Stat. § 216B.022
Not yet ingested
Minn. Stat. § 216B.024
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References In

No inbound references recorded yet for this provision.

Related Rules

§ 22
Definitions; submeter installation; testing; water use charges; public housing development exemption
§ 504B.216
UTILITY SERVICE IN SHARED-METERED RESIDENTIAL BUILDINGS.
§ 90.578
Conversion to submeter or direct billing for large parks.

Source Information

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