At Farmers Electric Cooperative, we offer our members two types of Budget/Average Billing: Budget Levelized Billing and Variable Budget Billing.
Budget Levelized Billing
This method allows you to pay almost the same amount each month – making it easier to manage your energy budget.
Our system recalculates your average payment quarterly with the October, December, March, and June bills. Your budget amount is calculated using your most recent 12 month average, the current rate at time of recalculation and the outstanding balance forward. Each year, settle up occurs in September. When your September bill processes, the entire balance on your account will be due instead of the average scheduled payment. The purpose of recalculation is to allow for wholesale price changes affecting your price per kWh during the year and usage changes. Most customers do not experience a large balance forward but it does happen occasionally. Your bill will always reflect the current amount of electricity used and a credit balance or balance forward from previous bills. By carefully watching the balance forward, you can monitor how well the program is working for you.
Variable Budget Billing
This method takes the previous eleven months’ KWH usage, adds the current month’s KWH usage and divides by 12 to obtain a monthly average KWH consumption. Those KWH’s are then calculated at the current month’s rate, fuel charges and applicable surcharges. The amount is then rounded to the nearest dollar, which becomes the budget amount for that month. The budget amount may vary from month-to-month depending on your monthly use. The advantage of this method is your account will not settle up once a year, so you can avoid the possibility of a large balance due in September.
To enroll in either budget billing program you must have lived in your current home for at least 12 months and have a favorable credit rating.
Contact us for more information at (903) 455-1715 or use the Contact Us form.