MidAmerican Energy Company

Budget billing is designed to ease fluctuations in monthly bills. The Budget Billing Plan is not a discount program; it offers no savings or lower rates. The total annual cost for electricity and/or gas remains the same, but customers have the convenience of a more predictable bill each month. Participation in the program is free of charge to all customers.

If customers have an established MidAmerican usage history, the cost of energy used for the previous 24 months is divided by 24. An average monthly cost is determined by multiplying that amount by a factor that takes into account projected electricity and gas prices.

A budget amount for customers who move into a home previously occupied by someone else is calculated based on the energy used by the previous occupant.

A budget bill amount can be reviewed every three months or every six months. Eligible residential customers also can choose an annual review. Depending on the selected review option, a budget bill amount may change four times, twice or once a year.

During the review process, average monthly costs are recalculated. Projected energy costs and the cost of actual energy used compared to the amount billed through the Budget Billing Plan are considered when determining a new budget amount.

Does Budget Billing Plan information appear on my monthly MidAmerican bill?
Yes. The information allows customers to compare the budget bill amount with what would be due that month if the plan was not in effect.

Customers receive a message on their bill when the Budget Billing Plan is reviewed. If the budget bill amount is adjusted, the message indicates the new budget amount that will start with the next bill.

What happens at the end of a Budget Billing plan year?
After 12 months, the cost of energy used is compared with the amount billed regardless of the review period chosen. There are two options available at the end of a plan’s year: Rollover or Apply.

Rollover: The money owed to MidAmerican or the money MidAmerican owes a customer is rolled over to the next year’s Budget Billing Plan and is considered in the review calculation for a new budget bill amount.

Apply: The money owed to MidAmerican or to a customer is included in the Budget Billing Plan’s year-end bill as an increase or decrease in the amount due and is not considered in the review calculation for a new budget bill amount.

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