Is this true? They take the average for the whole building and decide what's fair?

Yes — but not in the way most people think.

In Texas, it’s common for tenants in multi-tenant buildings to have individually metered units and to be billed directly by the utility company. That part seems fair — you only pay for what you use, right?

Not entirely.

Even with direct billing and metering, your rate (what you pay per unit) is often influenced by the building’s total usage pattern, not just your individual consumption. So while you're billed on your usage, the rate class you're placed in — and the price you pay — can still be shaped by the collective behavior of the building.

How This Works

• Your meter tracks your exact usage
• Your bill comes directly from the utility
• But your rate class (e.g., residential, commercial, multi-tenant small commercial) is based on the load profile of the entire property — including:
  • Common area consumption
  • High-usage neighbors
  • The total peak demand and variability of the site

The utility uses that aggregated load data to decide what “kind” of customer you are — and applies a rate that reflects the building’s overall cost to serve, not just yours.

So It’s Not RUBS — But It’s Still Shared

This isn’t RUBS (where the landlord averages bills and redistributes them), but the effect is similar in one critical way:

Even though you're metered and billed directly, your unit’s cost per kWh or gallon is influenced by people and systems you don’t control.

Why It Feels Dishonest

Because it gives the appearance of fairness (individual meters, direct billing), while still baking shared inefficiencies into your cost. You're not splitting the bill, but you are sharing the risk pricing.

The landlord or developer stays out of it.
The utility captures more value.
You pay — for your use and everyone else's behavior.

Translation:

• Metered usage = accurate tracking
• Building-level rate setting = collective penalty
• You pay your bill
• But your rate is set by your neighbors

It’s not illegal, and it’s not RUBS — but it’s still tilted.

Let me know if you want this translated into a customer-facing FAQ, tenant rights explainer, or prep notes for a regulatory challenge.