Budget Billing
Residential customers have the option of contacting their electricity and natural gas companies at any time to request budget billing. With budget billing, each month's bill will be the same and surprises of really high bills in the winter or summer are eliminated. The amount paid each month is based on the average electricity and gas consumption during the prior 12-month budget cycle when enrollment began in the program.
The company may adjust the utility bill four times per year, up or down, depending on the customer's use. At the end of 12 months, there is a "true up" charge or credit applied to your account. Customers will be charged if they have used more than what they have paid for with the monthly bills. They will receive credits if they have used less than what was paid.
The concept of budget billing is like an escrow account on a home mortgage for paying taxes and insurance. Budget billing is a free service provided by some utility companies.