Do You "Equal Pay" Your Utilities?

Avatar for cl_phocid
iVillage Member
Registered: 03-26-2003
Do You "Equal Pay" Your Utilities?
17
Thu, 12-29-2005 - 1:07pm

Another helpful tidbit for budgeting...


Many of the utility companies have a payment plan akin to "Equal Pay" where you pay roughly the same amount of money each month for 11 months, then the 12th month is the "settle up" month where either you pay them or they pay you, and in that month, they can better determine your rate for the next 11 months.

All my best,
Danni

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iVillage Member
Registered: 03-27-2003
Thu, 12-29-2005 - 1:18pm

We do and I don't think ours has a settle up month-instead they divide that out over the next 12 months as well. At least I think I've got that right....

Taleyna

iVillage Member
Registered: 12-12-2004
Thu, 12-29-2005 - 1:28pm
Hi, Danni. "Equal pay" utilities? Never heard of it, but it is an interesting concept. Will check it out. Whiz.
Avatar for cl_phocid
iVillage Member
Registered: 03-26-2003
Thu, 12-29-2005 - 1:36pm
Hey Whiz - it's definitely worth checking into.

All my best,
Danni

iVillage Member
Registered: 09-20-2004
Thu, 12-29-2005 - 2:19pm
We have the option of doing this, but choose not to. (However, we do have our auto/renters/life insurance spread out so we pay it monthly) Anyhow, this means we have utility bills ranging from the low 100s in fall and spring to the high of $418, which is what i have to pay this month. I enjoy seeing the low bills too much to go on the budget plan...we just cut back where we can when our energy bills are through the roof. Works for us. Heather
iVillage Member
Registered: 12-28-2005
Thu, 12-29-2005 - 2:19pm
I used to do my own version of this (we moved alot, and often wouldn't have the year's history). On the 1st, I'd pay my rent & interest bills; on the 15th I'd pay my car and split the rest of my bill money into 3 or 4 money orders, for utilities. And sometimes in the summer we wouldn't have a gas bill at all then!
iVillage Member
Registered: 03-27-2003
Thu, 12-29-2005 - 2:23pm

Our utilities offer equal pay plans, but we don't use them. Why should they get to keep my money in the summer and earn interest on it? LOL Instead, we worked out our monthly average ourselves, and in cheap months we set aside the extra in a savings account where it earns interest. In expensive months, we transfer the necessary amount into our checking account.

This wouldn't work in a situation where someone has trouble leaving money alone if it's there, but it works great for us.

Avatar for cl_phocid
iVillage Member
Registered: 03-26-2003
Thu, 12-29-2005 - 3:18pm
I hear you on this one Heather - I hate the idea of someone using my money for free, but since we signed up in November last year, by the time summer rolled around, we were still paying off the winter months where our usage far exceeded our payments.

All my best,
Danni

iVillage Member
Registered: 09-02-2004
Thu, 12-29-2005 - 4:15pm
I have been known to "create" my own equal pay plan with the elec. co. here by paying more than is billed in the low months, letting a credit balance accumulate and paying less in the higher cost months. It costs the moon to cool my house in July, August and Sept here in Houston! So, in Jan-April when the util bills are lowest, I pay more. Gas hardly ever is much, don't run the heater very often--get a big one in Jan and Feb, but it's much less costly than the elec. Water runs about the same all year.
Avatar for mymartes
iVillage Member
Registered: 03-26-2003
Thu, 12-29-2005 - 7:25pm

Our ulitity company does offer this payment plan. However, we don't take advantage of it. I prefer to pay every two month what our actual reading is. My parents do take advantage of it. BTW...they own a three family house. One apartment they rent out includes the light and gas.

MYM

Avatar for sohappilyme
iVillage Member
Registered: 03-26-2003
Thu, 12-29-2005 - 8:57pm
Our electric company calls it budget billing, and each month they show you the actual versus the billed (so you can keep track of your usage month by month, even though you pay the same thing). I think they average out the last year's usage, divide by 12, and somehow fix the difference, whether they add or subtract from the next year's bill or the final payment. Same concept. I fully intend to get on board, but your acct has to be caught up--as in no past due amount--to sign up and I haven't managed that one yet. LOL.

It's a Girl!

Sarah

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