Would you pay more than you have to for your electric bill?

[Sportymonk]

Know it sounds strange but here is an "offer" from my electric company "Progress Energy.

Balanced Bill Program

Current Average is $178.04
Highest is $253.59
Lowest is $91.12

(I have gas heat downstairs and a heat pump for upstairs)

They are offering me to pay $209.84 per month for 12 months. At the end of that 12 months, I owe them nothing and they owe me nothing! There is a $30 charge to terminate this service.

I called and asked if at the end of the 12 months I would get any excess back. NO! They keep it. OK, what happens if I use a lot of electricity this summer and go over, do I owe them? No, BUT if I go over by 30% at any time, they have the right to terminate and charge me $30 to terminate me for using more than they calculated. (and you thought car leases were bad!)

So I can pay $31 more per month and if I don't use more than I usually do, I will pay an extra $360 for 12 months.

The representative said that a lot of people are happy with the plan. (Bet they think they will get their excess back at some point). If you use more than they calculate but don't go over thee 30% limit, you come out ahead but at the end of the 12 months they will recalculate the amount you pay for the next 12 months.

[ramirami]

crazy!!!

I know our gas company does that... but they adjust it per usage so its just a way for people to better manage their budgets

[dragoncoach]

Sounds like a one way street for Progress Energy. Why would anyone pay more? And if one did, why wouldn't they get the overage refunded to? I don't do it, but in California, PG&E will set up an average monthly bill to help eliminate financial hardships created by high bills in the winter and recalculate it every quarter (I may be off). You can just as easily budget money and keep it in the bank and make payments as necessary.

[5Gs]

doesn't make much sense to me, unless you can somehow always use up to 30% more all the time, and then increase your usage another 30% every year.

[dragoncoach]

It's kind of like getting a rental and prepaying the gas. You can return the car as empty as you like...the trick is USING all the gas. No refunds but they fill it up so you don't have to. Never a win situation.

[jdeanski]

This is just another method to "ease" the pain of higher seasonal bills. Tough....I can handle the swings; why give them any more of my money to play with? I'd rather have it around for myself until it is needed!

[tgrimes]

Originally posted by Sportymonk
Know it sounds strange but here is an "offer" from my electric company "Progress Energy.

Balanced Bill Program

Current Average is $178.04
Highest is $253.59
Lowest is $91.12

(I have gas heat downstairs and a heat pump for upstairs)

They are offering me to pay $209.84 per month for 12 months. At the end of that 12 months, I owe them nothing and they owe me nothing! There is a $30 charge to terminate this service.

Why would anyone want to pay MORE for electricity? What makes you think you will consume more to make it a "good deal." The who level pay thing utilities are always pushing is a free loan to them. Never do it, let alone this rip off!.

I suppose if there was no cap on usage and you wanted to run a hydroponics operation then it would be a deal. Other then that it is a clear rip off. And the fact that they have a $30 cancellation fee is hilarious. Not a lot, but psychologically enough to make you think it is in your best interest to stick with it. That should tell you immediately that they are running a scam.

[whizmo]

Originally posted by dragoncoach
It's kind of like getting a rental and prepaying the gas. You can return the car as empty as you like...the trick is USING all the gas. No refunds but they fill it up so you don't have to. Never a win situation.

Perfect analogy.

- Mark

[Sportymonk]

Originally posted by tgrimes


... is a free loan to them ....

...I suppose if there was no cap on usage.

1. It isn't a loan. You NEVER get the excess money you paid them back!

2. There is a cap. If you go over 30% of their estimate, they remove you from the program and charge you the $30 termination fee!

I called the North Carolina Public Utilities Commission to complain and they knew all about the program. I said my problem is not with the program so much as people have the right to do dumb things but the fact the flyer sent out NEVER mentions you won't get your excess paid money back and probably many people are signing up thinking they will at some point. The lady sounded disinterested and couldn't have cared less. So much for the Public Utilities commission that is supposed to look after the public.