what is budget billing with teco

TECO's Budget Billing program takes the highs and lows out of monthly bills. TECO will recalculate the monthly budget amount each year on your enrollment anniversary. As a Budget Billing customer, we will continue to read your meter each month so you can see your actual usage and cost.

Full Answer

How does budget electricity billing work?

When you avail of the budget billing service, your electric bill won’t suddenly spike upwards, even if your utility usage does. However, keep in mind that your extra consumption adds up, so be prepared to pay extra later. Knowing in advance how much your bill for the month is makes it easier to allocate the needed amount when planning your budget.

What is a budget billing service?

In a budget billing service, the utility company determines your monthly average bill. They arrive at the figure by adding up the total of all your electric bills for the past 12 or 24 months, dividing the sum, and rounding up the result to the nearest dollar.

Can I sign up for budget billing over the phone?

Many people will sign up for budget billing over the phone, but it's important to not verbally agree to budget billing without first seeing the terms in writing.

Who is budgeting billing accountant?

She is a certified public accountant who owns her own accounting firm, where she serves small businesses, nonprofits, solopreneurs, freelancers, and individuals. If you've ever had your budget busted by a larger-than-normal utility bill, then you may want to consider budgeting billing.

How does budget billing work TECO?

What Is Budget Billing and How Does It Work? Budget billing works like this: Utility companies (your electric, natural gas companies, etc.) add up your bills for the last twelve months and divide the total by twelve to determine a fixed amount for your bill for the next twelve months.

Should I use budget billing?

Bottom line: Utility budget-billing plans might be a good idea for homeowners and renters who want a little more predictability in their monthly payments. But before you sign, you really need to understand how your utility company's plan works.

What exactly is budget billing?

Budget billing allows you to pay a set amount for utilities, such as electricity and gas, each month. The service makes energy costs more predictable for consumers, despite fluctuations in energy usage as seasons change.

How does a budget plan work for electric?

A. Budget billing is a payment plan where you pay a uniform amount every month for electricity rather than paying the actual monthly electric bill.

What are utilities in a budget?

Utility bills, or utilities as they're commonly known, are issued to customers who use essential services, such as energy, water and sewage. As an example, a utility could refer to a quarterly electricity bill or monthly water charges.

What is average billing rate?

Average Billing Rate (ABR) - ABR is a simple mean of the per-unit rate of the consumers of different categories. Through Rate (Thru Rate) - Thru Rate is used to indicate the per-unit rate at which revenue is realized.

What happens when you cancel budget billing?

Please keep in mind that if you cancel the Budget Billing program while you have a payoff balance, the amount you owed or credited will be applied to your next month's bill.

What months are electric bills the highest?

Typically, electricity is in the highest demand from 10 a.m. to 8 p.m. in the summer.

What is equal payment plan?

The Equal Payment Plan (EPP) is an option for residential accounts that averages your utility costs per service over a 12-month period so that you pay an equal amount each month. To be eligible, you must have 12 months of consecutive consumption at the same site and the same rate structure for each service.

How do you budget a bill to fluctuate?

Here's how the system works.Find at least 6 months of past utility bills (water, electric, gas). To get started, you'll want to have six months of your past bills handy. ... Calculate the average amount you spent for each utility bill. ... Use the average of each bill to determine how much to set aside for each utility bill.

Can you pay electric bill quarterly?

The most common and often the most effective method of paying your energy bill is to set up a direct debit. It means you don't have to worry about making any payments yourself, as long as you have enough money in your chosen bank account to pay the bill. You'll have the option to pay either monthly or quarterly.

What does levelized billing mean?

No Surprises. Levelized billing prevents drastic changes in your bill, even during the coldest or hottest months of the year. A levelized bill averages the previous 11 monthly bills and the current month's bill for a service address. See below for examples of how levelized bills are calculated.

What is budget billing?

Budget Billing is a voluntary program that eases the highs and lows of your monthly bills. Instead of paying your actual energy costs each month, which can fluctuate, you pay an average amount, based on your energy use from the previous 12 months. The difference between the billed amount and the actual amount of energy used is called ...

How long does it take for a budget billing account to be suspended?

Accounts must be maintained current to remain active in the Budget Billing program. If your account generates two service disconnection orders within 12 months for non-payment, your account will be dropped from the Budget Billing program.

When discontinuing budget billing, what happens to the deferred balance?

When discontinuing Budget Billing the entire deferred balance will be posted directly to your account. If a debit amount, this balance is due on your next statement payment date. If a credit amount, TECO will credit your statement by that amount.

What is budget billing 2021?

Updated July 15, 2021. If you've ever had your budget busted by a larger-than-normal utility bill, then you may want to consider budgeting billing. Budget billing means your utility company (like the power or gas company) will offer you a set amount due each month for a certain utility. To determine this amount, ...

Can you budget without spending money on administration fees?

Then roll over the additional amount from the lower months to cover the months where you use more power. This will help you to budget without spending money on administration fees. You can do this with any category where the amount you spend each month fluctuates.

What Is Budget Billing?

Budget billing is a program designed by utility companies to level out the fluctuations in your monthly utility bills. With this program, you don’t pay for the costs of your actual energy usage. Instead, you’re billed a set amount each month from your power or gas company.

How Does Budget Billing Work?

Throughout the year, your monthly energy usage typically varies. As the seasons change, you may use more or less electricity, for example. As such, you may find it difficult to predict how much you’ll pay for your next utility bill.

Budget Billing: How Much It Cost?

Most utility companies offer the program for free. They use it as a means to assist their customers in planning their monthly budget. Budget billing also works for the company because it lessens the chances that their customers won’t settle their bills during periods of high power usage.

Benefits of Budget Billing

Without budget billing, your monthly bill fluctuates. That means you’ll need to keep a sharp eye on your consumption to ensure your budget won’t suffer when the time comes to settle your account. The upside of budget billing is that it addresses some of the hassles associated with bill payments. Here are some of them.

Drawbacks of Budget Billing

Despite the advantages of the program, budget billing is undoubtedly not a fits-all proposition. It also has its drawbacks, which you’ll need to weigh against the benefits to ensure you’re getting a great deal. Let’s dig into some of the disadvantages of budget billing.

What To Think About Before Signing Up

Although budget billing sounds like a good option, it may not work out for everyone. If you’re thinking of signing up for the program, find out if it will fit your needs and situation. Let’s look at some things worth considering.

How Do You Get the Most Out of Budget Billing?

Budget billing may not save you money per se. That’s because signing up for the program won’t give you discounted rates. Still, there are ways to get added value from the program.

What is the total balance of $82.89?

The total account balance of $82.89 represents your total balance before the budget payment of $125.00 is received. Once the $125.00 is received, your total deferred balance is a credit of $42.40. Remember, you are responsible for all of your usage!

How long does a deferred balance roll over?

If you decide to roll over the amount of the deferred balance whether negative or positive, then the balance/credit will be spread out evenly over the next 12 months and included in your new budget amount.

What happens if you apply deferred balance to your next bill?

If on your budget bill anniversary date you decided to apply the deferred balance and the deferred balance is a credit, it will be deducted from your next bill. If the deferred balance is a debit, it will be added to the next bill.