Utility Budget Billing

Utility companies that offer a levelized payment plan under which the utility predicts what future bills will be for a customer based on the prior year's bills and anticipated changes going forward (e.g., higher rates). The customer pays a level amount each month. If at the end of the budget year, the amount paid under a budget billing plan is more than actual charges, then the customer gets a credit. If the customer pays less than actual charges, the customer must make up the difference. Budget billing plans are intended to level out swings in utility bills due to seasonal changes in customer consumption and do not affect overall utility charges.