Ways to save: Budget billing

Budget billingMay 2021

What is budget billing?

“Budget billing can be a very beneficial tool in assisting customers with budgeting their monthly expenses,” says Lori Christner, Supervisor of Consumer Accounts. “Dawson PPD works with these customers by spreading their electric bill expense evenly over 12 months.”

How does it work?

Dawson PPD implements a fixed budget based off your account’s last 12 months of billing history from May to May of each year.

“We use May to May as the budget year as this includes 12 months of billing history,” Christner explained. “May is historically a lower energy use month, making it easier for customers who may be behind to catch up.”

When a customer signs up for budget billing, the first budgeted bill will arrive in June. It will be a same amount each month, regardless of actual electrical use. At the end of the budget year, customers will pay to “true up,” or reconcile, their account or receive a credit.

“There are so many factors that come into electrical use, especially the weather,” Christner said. “The weather can vary immensely year to year, so this budget billing isn’t an exact science. We encourage our customers to monitor their actual billing each month so that when it comes time to ‘true up,’ they are prepared.”How do I qualify?
Customers must have at least 12 months of billing history with Dawson PPD and be in good credit standing with the District.

Will I be able to see my actual billing each month, so I know what my true balance is?

Yes, your electric statement will include a “Total Amount Due” and a “Total Budget Amount Due.” The total budget amount due will need to be paid monthly regardless of the total amount due.

Can I make extra payments or change the monthly budgeted amount?

Yes. If a customer requests to make an extra payment or increase their monthly budget based on unforeseen circumstances (ex. extreme hot or cold weather) Dawson PPD will work with them.

Do I have to sign up for budget billing every year?

No, you do not have to sign up each year. At the end of the May-to-May budget year, your account’s actual use and average will be calculated again and may be different from the year prior based on your actual electric use. This new amount will be billed starting in June and lasting until the following May. This cycle will repeat until the customer cancels service or requests to be removed from budget billing.

Can I go off budget billing at any time?

Yes, you may end it by contacting Dawson PPD at any time. However, your total amount due will be due at the time the budget billing is canceled and you will be unable to sign up for budget billing until the next budget year.

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