How to Get on a Balanced Billing Plan with Your Electric Company

Does your electric bill remind you of a roller-coaster with its ups and downs? Never really knowing how much you’re going to have to pay each month for electricity is taxing. How can you plan a successful budget when energy costs fluctuate from month to month? One option is to get on a balanced billing plan. Though there is a process to achieve this, once you do, it’ll definitely be a worthwhile investment.

Learn What a Balanced Billing Plan Is

A balanced billing plan is an agreement you make with your electric company to pay the same amount each month, no matter how high or low your usage is. This may sound a bit hairy because you could be paying more than you should after a year’s worth of bills. Still, never fear. If that's the case, you will get a check from your electric company for the amount you overpaid or they will apply the amount as a credit to your next statement.

Look At All Your Options

The first thing you should always do when you build a budget is to look at all of your options. Is a balanced billing plan really the best way for you to go? Sometimes yes, sometimes no. If you don’t have a steady income, it might be better to have a bill that comes in at the same price every month so there won’t be any surprises. If you have a steady income, that regular bill might be nice, but not really necessary.

It could be that with the balanced billing plan your bill is still too high for you to handle. If that’s the case, look into ways of cutting down on your energy use. Consider making small changes, ,as they often end up making a big difference. If possible, reduce or eliminate the supplementary use of space heaters and window air conditioners in the winter and summer months. Also, look into changing out your incandescent light bulbs for fluorescent ones.

Some minor changes you make here and there could lower your bill enough to translate to a lower average cost for a balanced billing plan in the future.

Build Up Six Months to One Year of Electric Use

In order to accurately calculate an average bill, your electric company will probably ask you to have six months to one year of account history accrued before setting up a balanced billing plan. This way, they know how much you tend to use in a year’s time. A balanced billing plan generally looks at the last 12 months’ worth of bills you’ve had and come up with an average. This average is what you will be paying each month for the next 12 months. If you use more electricity than you did last year, you will owe a bit more at the end of the year. If you use less, you will receive money back. Overall, you’re still paying as much as you would if you were to pay each month for your actual usage, but instead it’s a steady payment that you can rely on instead of a range of numbers that jump around.

Call the Electric Company to Set It Up

After evaluating your needs and concluding that a balanced billing plan is right for you, give your electric company a call during their regular business hours and ask someone to set you up. As long as you have that six months to one year of business with them, they should have no problem setting the service up for you. They may have a few questions for you, so be prepared by having your most recent statement on hand. Keep in mind this service will usually not start immediately. Instead, it will begin at the start of the next billing cycle.

If you’re still not sure if a balanced billing plan is right for you, you can always call up your electricity provider and ask any questions about the service. You can also see if they have any other options available that might work better for your situation.

Kick those sky-high electric bills to the curb and say “Hello” to a balanced billing plan that you can rely on. Instead of dreading your bills each month, you’ll be prepared for what’s to come.

Resources:
http://www.nationalgridus.com/niagaramohawk/home/payment/3_budget_plan.asp
http://www.montana-dakota.com/WYOMING/CUSTOMERSERVICES/Pages/BalancedBil...