Does anyone use levelized billing for electricity? How does it work? We have a spike in use both in the summer (A/C) and winter (heating). Do they average the previous year to determine your new rate?

BTW, I saw a thread on levelized heating oil, I think, but to me electricity seems different, but maybe I'm wrong. We don't use heating oil here but if the concept is relevant feel free to let me know and I'll use the info from that post.

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Megan

Our electric company takes an average of the last 12 months. If your usage is very high then your bill might go up a few dollars but not much. They bill monthly for this service. I like it because it saves me from getting a $300 bill.

That is how our does it too, and every 12 months after signing up, you are again averaged, so your bill for the next 12 months may go up, or down depending on the new average.

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I looked online at my company's website and it averaged our bill saying we would be paying $205/month that way. WHEW...But, it definitely makes budgeting a known preset amount easier!

I haven't decided whether or not to go through with it yet....

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Mine works the same way. I also have my gas bill on a budget plan. My bill shows whether I am ahead or behind for the year. But beware, the first year we did it we kept the house "comfortable" because we weren't seeing those huge bills and our bill went up $30 a month the next year to make up for what went over. But overall I think this is great it makes it so much easier to make a budget!

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My gourds made the front page of the paper!!

We had this set up at our old house and it was great for budgeting and not having to deal with the "spike" in our bills. We have to wait for a year (May 2008) before we can sign up for it in our new house so they can figure out our average. I plan on signing up for it then.

We had a level pay plan and it worked out great, until we had the "catch up month". We were slammed with a huge bill and we hadn't budgeted for it. I would ask about the catch up month. Or you could really watch your bills and figure it out for yourself and make extra payments if needed.

Our electric company gives you the option of the catch up month or to spread it throughtout the year.

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My gourds made the front page of the paper!!

It seems to me that paying a huge bill all year long is worse than the spike once or twice a year.
For us we only have one spike, in the winter because we have electric heat.
Our summer bill is between $55 and $60 dollars
Our winter bill is Between $200 ans $295 dollars

What I do is adjust my budget as needed.
In the summer I budget $60 and pay that $60 even if my bill is $55.

Then when it starts getting colder I up the budget.
I'll up to $90 as soon as the temp. starts cooling off, even if I havn't turned up my heat yet. and again I pay the whole amount budgeted, even if I don't need to. This keeps me AHEAD!

Then once the leaves fall I Budget $120 a month
Then once I turn up my heat I budget $175 a month
And once it snows I budget $200 a month

AND I PAY THE WHOLE AMOUNT BUDGETED! This leaves me with a credit every month.
I never pay more than $200 a month... and in the spring and summer I pay $60 a month. And sometimes don't have to pay my first lower bill because Of my credit.

This works better for me. I just can't stand the idea of paying $200 or more all year long when a little extra care in budgeting will mean you won't have to!

I hope this helps someone.

I do this for my hydro bill. They average out what you used in the previous 12 months, and that's your monthly bill for the next 12 months. The bill does tell you what you've actually used for power too though (if I notice I'm using more power than I'm paying for, I'll usually add some extra money onto my monthly charge). Each anniversary you are billed the balance (if you used more power than the previous year), or you are given a credit (if your payments covered more than the power you used this year).

PS - If you only have one or two times a year your bill spikes up, it's hardly going to average out to a huge monthly payment on the flat payment system. I use a lot more energy in the winter months (we live in a very mild climate that rarely ever hits a freezing temperature - but we are spoiled and like our heat). My hydro bill still only averages out to a $42 monthly payment.