Electric bill budget plan?

[SillyMe]

My electric bill is outrageous for a tiny little apartment. I saw they have an amount listed for the "budget plan". How exactly does it work? I know you obviously pay that same amount every month, but what if you have extra credit at the end of the year? Do they just apply it to next year's bill? I just moved in here 2 1/2 months ago, so I'm not sure how low the bill will drop in the summer months with the heat on. I'm just wondering if it would be worth it at this point in the winter to go on this budget plan or not.

 

[kimwim8]

It's been about 5 years since I worked for an electric utility, but I'm surprised that they would offer you the chance to go on a budget plan with only 2 1/2 months of billing history.

Basically, you would pay the same amount for 11 months, and the 12th month would be a settle-up month. If you over paid, you would have a credit and they would make your budget amount lower for the following year. If you under paid, you would have to pay the balance, and they would increase your budget amount for the following year.

I would consider calling and asking them what they are basing the amount on, since you don't have much billing history in that location with them.

Oh, and they may automatically adjust your budget amount during the year, if they see you accumulating a big credit or a big balance. It is your option if you want to call at that point & continue with the current budget amount or if you want to accept the changed amount.

Good luck! Hope I helped.

 

[cepmom]

I am not on the budget for the electric bill, as it is usually about the same each month (we have central air), but we are on the budget billing for the gas. I think you need to be with the utility company for 1 year, then they can get an idea of how much you use for the year and average it out for your (approximate) monthly payment. My gas company re-adjusts the budget a few times a year to try and make sure we come out even at the end of the "budget year". I like it for the gas bills, since they can really skyrocket during the winter months.

 

[Cindy's Mom]

This is for the gas company, but I'm sure its works similar for the electric company. When we moved into our current home 3 years ago, the gas company set us up on a budget plan based on the heat that was used in the home for the 12 months prior - I guess they figure it would be pretty close to what we would use. so I did that for about a year and at the 12th month - I had a $500 credit and didn't have to pay the gas bill for several months. I probably knew I was overpaying, but didn't mind cuz I knew I'd get a couple months off.

 

[Alicnwondrln]

its to much here to NSTAR jusr went up almost 5 cents per kilowat hour
so my billlast month was like 894 kiowats used bill 130
this month same kilowats but my bill was 180

 

[buckylarue]

We're on the budget plan for our electric bill, and normally pay about $135 a month, but this month, they said there was a 'recalibration' of our meter, and our bill was $285! At least it goes back down next month, but it was quite a shocker!

 

[PaulaSue]

We do the budget plan for the gas company and insurance and it is great.

With the gas company if we over pay (they over estimated) we will go a few months with a lower payment or 3-4 years ago we went 2 months without any payment.

I wish more companys would do it like Dh's life insurance, they both come due within a month of each other.

 

[horseshowmom]

Our electric and gas companies don't have a formal budget plan, but we do it on our own. DH sends the electric company $150 a month, and the gas company $25 a month. He's been doing it for over a year, and it's worked out very well. As another poster mentioned, sometimes you can wind up without a bill. We've never had to add any to it (at least not so far).

 

[DVC-Don]

Ours reviews the account every 3 months and make adjustments.

 

[Caradana]

I love the budget plans - the consistency is great, and it inspires me to use less, so I can get that credit in the 12th month