1. Submetering-RUBS Trends In Western States
Even as the economy slows, submetering & RUBS continue to increase across the west. While there
has been an overall drop off in both new construction and retrofits. Submetering penetration
continues to climb in all western states. The following state by state summaries show positive upward
trends for all states.
ARIZONA
Over the years Arizona has been one of the hottest markets in the nation for RUBS/submetered water
and submetered central heat/air conditioning systems. Penetration levels in many Phoenix area cities
are in excess of 70%. However as vacancies have increased and building has slowed the market has
cooled considerably. Phoenix continues to have some of the lowest water rates in the west while its
major reservoir sits far below capacity. New construction has slowed and at present there is very little
retro-fitting going on.
CALIFORNIA
California Weights and Measures rules and regulations have made submetering far more difficult than
it needs to be, as a result the cost for equipment to submeter is the highest in the country with few
meter manufacturers even attempting to sell their products in California. While California continues to
be a very hot market for submetering its present rules and regulations make it difficult for meter
manufacturers to do business there. A couple of years ago the Department of the Interior ordered
California to quit taking more Colorado River water than it is entitled to under the Colorado River
Compact. If the ruling stands, California will lose several thousand acre feet of water annually with
little chance of making up the shortfall without major conservation efforts.
COLORADO
Most Colorado water districts have raised water rates and many have implemented tiered rate
structures. Property owners continue to implement submetering or RUBS programs giving Colorado
one of the highest penetration rates in the region. Both gas and electric submetering have seen a rise
in recent years.
NEW MEXICO
Over the last few years New Mexico has seen consistent growth in both RUBS and metered water.
Recent years have seen an acceleration of the transfer of water costs to residents.
OREGON
Conflicting information from the state on whether billing charges and other costs can be passed
through to residents has slowed the growth of both RUBS and submetering of water. While
submetering and RUBS are both increasing in use, Oregon is considerably behind both California and
Washington. Gas & Electric metering and allocation are specifically
prohibited.
TEXAS
By far the most active market in the country for water. Last year Texas accounted for almost a quarter
of all new submetered water or RUBed properties. All forms of gas and electric submetering and

2. RUBS are allowed but that market is considerably smaller than it is for water.
UTAH
While there has been an increase in both metering and RUBS water in the last few years and a large
increase in the last year, Utah still somewhat lags behind the rest of the region in passing costs
through to residents but that is changing. There has been some call for gas and electric submetering
but Utah is a minor market for these services.
WASHINGTON
Washington state has been one of the industries most consistent users of both metered and RUBS
billings. While there has been no dramatic increases, there has been steady growth for several years.
Gas has seen a similar steady growth over the last several years with no indication of any kind of a
slowdown. Electric has seen only minimal use in the area.
Summary
Overall passing water costs through to residents continues to increase in virtually all markets. Even in
markets that have seen high vacancies the interest remains high. The best guess is that at present
over 3 million units nationwide presently pass through water costs, with the numbers continuing to
grow.
Gas & electric submetering continues to steadily grow primarily in areas where there are large
numbers of pre 1980 units and new construction where for economic or aesthetic reasons, central
boiler systems are installed
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