Budget Billing
Your energy usage typically will fluctuate with the seasons and can even vary from month to month. A free service available to residential and general service customers, the Budget Billing program eliminates the guesswork of monthly electricity bills by estimating your annual bill and allowing you to pay the same amount every month.
What is Budget Billing?
Budget Billing is an optional TEP payment plan that allows you to pay for your electric use in equal monthly installments. While traditional month-to-month electric bills can vary greatly from season to season, Budget Billing levels out the peaks and valleys and allows you to make the same monthly payment year round. With budget billing, you'll know ahead of time exactly how much to budget for your electric bill.
How does it work?
Your estimated annual bill will be divided into 12 equal monthly payments. We will continue to read your meter monthly, but you'll pay the same amount from one month to the next instead of paying a different amount each month. Your bill will show how much energy you've used, the amount you've paid and whether you're ahead or behind on your actual usage.
We may adjust Budget Billing amounts periodically to reflect changes in your actual usage. As a Budget Billing customer, you also have the option to request a review anytime to see if an adjustment to your Budget Billing amount is necessary to reflect your actual usage. But ultimately you'll only pay for the energy you use.
If you've used less energy than you've paid for, we'll owe you the difference. That amount will be applied to your next Budget Billing payment(s) until it is used up. If you used more power than you paid for, you will owe us. That amount will be added to your Budget Billing payment, equally divided over the next 12 months until it is paid off.
How do you figure out my monthly payment?
First, we total the last 12 monthly electric bills from your home. Next, we divide that amount by 11 (rather than 12) to ensure that your monthly payment covers your actual usage, regardless of changes in weather or energy use patterns. This helps to keep you from owing TEP for more power than your budget amount covers.
Whatever the amount, you'll end up paying only for the energy you actually use. Any overpayment or underpayment will be resolved through adjustments to your Budget Billing amount or direct payments.
What happens if I leave the program?
If you've used more power than you've paid for by the time you leave, you will receive a bill for the amount due. If you've paid for more power than you've used, the credit balance will be refunded to you.
How can I qualify for Budget Billing?
Everyone is eligible for budget billing. If your residence does not have a history of 12 months, we can use the previous tenant's history or a similar property to estimate your budget amount. To remain on the program, all bills need to be paid monthly by the due date or you will be subject to removal from the program, at which time, all unpaid usage becomes due and payable.
What will my TEP bill look like?
Your monthly bill will look almost the same as usual. It will show your meter reading for the month as well as charges for the utility services you used and the costs that would normally be due. It also lists the Budget Billing payment - the amount you actually pay.
Ready to sign up?
You can use TEP.com's Account Manager's easy to use online form to sign up for Budget Billing. Click here.
