Average Payment Plan
The average payment plan is very similar to budget billing, although each monthly bill is not exactly the same. Instead, each monthly bill is based on the average of the actual amount of electricity or gas used during the past 12 months. Each time a new bill is prepared, the monthly amount is updated based on the average consumption of the most recent 12-month period.
The amount of the monthly payments will vary slightly from month to month, but there will be no significant changes associated with peak heating and cooling months. The monthly bills are representative of actual energy consumption so there is no need for a "true up" charge or credit each year as required with budget billing.Average payment plans are also a free service of some utility companies. The customer pays only for the energy used.