"Balanced Bill" offer for electric bill

[disneysteve]

Re: "Balanced Bill" offer for electric bill

I used to use the equalizing plan. As far as I know, I didn't end up paying any more or less than I it would have costed me without the equalizing plan.

You definitely don't pay any more. You just pay it in equal installments, rather than having a big electric bill during the heat of the summer and a small one during the winter (unless you have electric heat).

What you do need to realize, however, is on the equal plan, if your usage exceeds your payments, in the 12th month, you can get a large bill so you need to keep track of your actual usage. Of course, the flip side is if your usage is less than your payments, you can end the year with a credit and owe nothing in that 12th month which is always nice.

[sweeps]

Re: "Balanced Bill" offer for electric bill

There is the interest on the float, but there is also the cash flow issue. All of us know how important a steady cash flow is. Talk to anyone who works on straight commission and you'll see what I mean. Just as we like to have a steady income to cover our fixed expenses, so does a business. They have to meet payroll, fuel their vehicles, pay rent and utilities, insurance premiums, etc. I'm sure any business owner, large or small, would like to know exactly how much is coming in each month rather than having to deal with widely varying income.

I agree. I think that's probably even more valuable to them than the float. I'm getting solicitations right now in the fall, which would allow me to pay LESS for several months -- so actually the company would take a hit, at least in the short term.

[poundwise]

Re: "Balanced Bill" offer for electric bill

You definitely don't pay any more. You just pay it in equal installments, rather than having a big electric bill during the heat of the summer and a small one during the winter (unless you have electric heat).

What you do need to realize, however, is on the equal plan, if your usage exceeds your payments, in the 12th month, you can get a large bill so you need to keep track of your actual usage. Of course, the flip side is if your usage is less than your payments, you can end the year with a credit and owe nothing in that 12th month which is always nice.

I think everyone needs to realize that there are clearly different types of plans called balanced or equal payments, etc.

With the plan I am offered, the statement "you definitely don't pay more" is incorrect. The 12th month is not a balance month. I would pay the 121.09 a month for 12 months, then, unless I choose to opt out of the "Balanced Bill," I would be assessed a new value for the next 12 months and that would become my new fixed payment.

The only definite thing here is that "Balanced Bill" or other equal payment offers should be closely scrutinized.

I'll stick with paying for what I use. I have enjoyed watching my bill come down as I have taken steps to reduce it. I know it will be higher in the middle of July and in January. That's just not difficult to manage.

As a side comment: I also think Ima's idea earlier is a good one.

[disneysteve]

Re: "Balanced Bill" offer for electric bill

I think everyone needs to realize that there are clearly different types of plans called balanced or equal payments, etc.

With the plan I am offered, the statement "you definitely don't pay more" is incorrect. The 12th month is not a balance month. I would pay the 121.09 a month for 12 months, then, unless I choose to opt out of the "Balanced Bill," I would be assessed a new value for the next 12 months and that would become my new fixed payment.

My apologies. That is not at all how our plan works.

poundwise - On that plan, do they only adjust once each year? I think our plan can adjust every 6 months.
The one advantage to the plan you are being offered is you can't get hit with a large bill in the balance month so you avoid that surprise.

[JanH]

Re: "Balanced Bill" offer for electric bill

One of the reasons we do this right now is to help us set our budget. We've only been budgeting for two months. Our electric bill fluctuates from about 70 in winter to almost 300 in summer. So leveling has helped us keep consistent for now. In the future, we will probably do as Ima suggested and put an average away in our own accounts. But for now, it is a help to get squared away and see where we stand every month.

[thomas70]

Re: "Balanced Bill" offer for electric bill

deleted

[disneysteve]

Re: "Balanced Bill" offer for electric bill

Steve, do you know on a month to month basis what your actual amount would have been if you weren't on the equalized plan?.

Yes. My bill lists the actual gas and electric usage, the budget plan payment and the progress on the budget plan year-to-date: how much has been paid and what the actual usage total has been and whether I'm over or under that amount.

[vsjhoc]

Re: "Balanced Bill" offer for electric bill

Yes. My bill lists the actual gas and electric usage, the budget plan payment and the progress on the budget plan year-to-date: how much has been paid and what the actual usage total has been and whether I'm over or under that amount.

Same here. I pay an equalized amount for gas. I am "behind" most of the year, meaning I have used more gas than I have paid for. I get caught up in September or October, then winter starts and I am "behind" again. So I guess it works for me because I'm almost always paying (cumulatively) less than what I've used.

[piggybank4]

Re: "Balanced Bill" offer for electric bill

Our highest electric bill (in Texas, during the hot summer months) is $105 or $110

During the spring/fall it's only $55.

Electricity here is 9 cents per KW/h.

And that's for a household of 3 people, with the breadwinner working from home (both jobs) and the wife a stay-at-home mom -- which means we're all here, all day. Also, everything in our house is electric (we have no natural gas bill)

There are many good ways to save electricity, which is an easy way to save money.

[RJB1180]

Re: "Balanced Bill" offer for electric bill

Yes but you benefit from location!! Some of us are dealt costs by region. 2 people 1 work one SAH, high bill 210. So savings are YMMV

[piggybank4]

Re: "Balanced Bill" offer for electric bill

Texas doesn't go easy on a person during the summer!

I know plenty of people who have larger houses, different lifestyles, etc. who have $200, $300 or even $400 electric bills during the summer.

On another note, our phone & (DSL) Internet bill is about $45 a month.
That includes 100 minutes of free long distance per month.
A lot of money can be saved by ditching the "must-have" cell phone.
It's great to be able to relax and breathe while we're in the car, away from our phone!

[Hot dog]

Re: "Balanced Bill" offer for electric bill

I don't think this has too much to do wih this but I have to vent. My electric company has estimated for the last 3 months what my electric was. It is a brand new house mind you. Anyway last month they said they did an actual reading and this month I was expecting the same amount cause no ac or heating on --$60. I got a bill for $500 Evidently they have not read my meter correct and I was budgeting based on what my bill was now I have a bill for 5000 the same month as my ins and my escrow was also figure wrong and I had to pay them 330 or have my mortgage go up 25 every month Just venting

[boefixepa]

Re: "Balanced Bill" offer for electric bill

I balances my utilities myself. I take the average for the laster year and do what they do with my evelope system. I started of funded my envelopes to hit zero, or close to it, when it switched seasons. So the 'extra' in the electricity envelope runs out at the end of summer and the gas at then end of winter. I don't ever have to worry about the amounts because I have the $$ in their envelopes and I put the 'balanced' amount in the envelopes every month. It works for me.

[b4freedom]

Re: "Balanced Bill" offer for electric bill

My MIL did this 3 months after moving in. Her first month was $32. The second and third month she was away and the bill was around $15 each month. Because the first three months were so low, her estimate was extremely low, around $25. Her meter is in the basement. She's never home during the day to let the reader guy down into the basement. A few months ago, I noticed her energy bill on the table and asked why it was so low. She said that it was based on estimated usage and that they haven't read it for a long time. So, i figured out how much she'd owe if they read it that day. Nearly $2100. But, that was using the rate at the time. The rate keeps going up. I heard that this happens a lot in Philadelphia. People work and aren't home. Homes are older with gas/electric meters in the basement. Eventually the power company gets in and sends them a giant bill. The people can't pay, so the power company turns it off and they freeze to death in the winter.

[b4freedom]

Re: "Balanced Bill" offer for electric bill

Oh, and I'm paying 14.2¢/kWh for my power. - it sucks