How does Budget Billing work?

Some months your bill is much more expensive than other months. Because of this, it can be hard to plan for paying the bill. Budget Billing is designed to charge you the same amount every month to give you a more predictable bill. But how does the energy company decide how much to charge you?

Your power company finds the average amount you used over the last 12 months:

 

Month

Example bill amount  

January

$400

February

$200

March

$150

April

$100

May

$100

June

$150

July

$200

August

$300

September

$150

October

$100

November

$200

December

$300

Total

$2350

$2350/12 months = $195.83

So, your monthly bill is $195.83. But, the power company still keeps track of how much power you are actually using. If you use less than $195.83 in that month, you get a credit on your account. If you use more, the power company keeps track of this, too. Eventually, you must pay the difference if you owe more than you have paid.

The average amount is recalculated every 3 months to be more accurate for your actual use. Often, if you owe other charges, these will be included in monthly payments, too. 

For more information, read p. 8 of BGE’s Residential Consumer Reference Guide.