DENVER — A law passed in Colorado last year was supposed to protect renters from hidden “junk fees” and make apartment billing more transparent.
But some tenants say it’s had an unintended effect and is skyrocketing their monthly utility bills.
At Tamai Tower at Sakura Square in downtown Denver, tenant Tyler Driver said for almost two years, he knew exactly what his monthly utilities would cost: $73 a month.
“Now, it’s been almost tripled — sometimes over $200 — and I’ve lost the ability to budget,” Driver told Denver7 Investigates.
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Driver said the hikes began in January, when House Bill 25‑1090 took effect.
The law requires landlords to disclose all fees and prohibits bundling undisclosed charges into rent.
His landlord, Cornerstone Apartments, told him the change was because the bill “prohibits landlords from charging a fixed rate for utilities.”
Another resident, Kai Wilson, said his flat $85 utility fee jumped to more than $150, and even to $300 in one month when two billing cycles were combined.
“It's been tough. It just came out of nowhere,” Wilson said. “I wish there was more warning.”
Lawmakers said the law allows flat-rate billing, but not for a profit.
State Sen. Mike Weissman, D-Adams and Arapahoe counties, who sponsored HB25‑1090, told Denver7 Investigates in a statement: “1090 always intended to allow ratio utility billing — provided junk fees weren’t piled on top. You can meter individually or you can meter via ratio, but you can’t use it as a profit center.”
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State Rep. Emily Sirota, D-Denver and Arapahoe counties, also a prime sponsor, said in a written statement: “This law authorizes landlords to continue using a ratio utility billing system and clarifies that this is not considered a ‘junk fee’ under Colorado law to divide utility charges among tenants.”
Both note that HB26‑1013, signed into law March 27, 2026, was passed to address any confusion, making clear that landlords can continue either ratio billing or fixed‑rate arrangements as long as they only pass through actual utility costs without adding prohibited fees.
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Rep. Naquetta Ricks, D-Arapahoe County, another sponsor, acknowledged there were some unintended consequences from 1090 before lawmakers passed HB26‑1013 as a fix. She explained: “There should not be any increasing costs from ratio utility billing, because 1013 fixed that. … Nothing has changed the amount that is being charged by Xcel Energy, or whoever their utility company is — it should still be the same.”
In a statement to Denver7, Cornerstone Operations Director Jake Smith said the company changed Tamai Tower’s billing from flat‑rate ratio billing to “actual meter‑based usage readings” on Jan. 1 to comply with the law.
He said that while the transition did result in higher bills, “the increase reflects more precise measurement of consumption rather than estimated or averaged charges used previously.”
Smith also said the recent dramatic spikes — more than $200 for some residents — were tied to an administrative issue: two months of utility usage from late 2025 were not billed on time.
Those charges, for December 2025 and January 2026, were spread over March and April bills instead of being billed all at once.
In an email to Driver, Cornerstone also noted that under the previous flat rate, residents had been paying about 50% less than actual usage costs for years, with ownership covering the difference.
Driver said he doesn’t buy that explanation.
“I think it’s a convenient excuse. I think they’re taking everybody for a ride just based on the verbiage of the bill,” he said.
HB26‑1013, now in effect, clarifies that landlords can keep fixed‑rate or ratio billing without fear of violating HB25‑1090, as long as they are charging only what the utility provider charges, plus any allowed capped administrative fee.
Weissman said the bottom line hasn’t changed: “You can’t use it as a profit center.”
Driver said, for him, the changes are too much. His lease is ending, and he’s not renewing.
“There’s just too much financial uncertainty right now,” he said.
