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Budget Billing
What is MidAmerican Energy’s Budget Billing Plan?
Budget billing is designed to average monthly payments and level out high bills that may occur throughout the year. Meters are read each month, and energy usage and cost appear on monthly bills so actual expenses can be compared to the budget bill amount.
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.
How is a Budget Bill amount calculated?
Calculations are made using one of three methods:
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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. |
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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. |
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Customer service associates assist with determining a budget bill amount for customers who move into a newly constructed home or business with less than three months’ usage. |
How
often is a Budget Bill amount reviewed?
One of three review periods can be specified: once every three months (quarterly review), once every six months (semi-annual review) or once a year (annual review). Depending on the selected review option, a budget bill amount may change four times, twice or once a year. The annual review option is limited to eligible residential customers.
During the review process, 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. The cost of the energy used compared to what has been billed for through the Budget Billing Plan also is considered when determining a new budget amount.
Frequent reviews allow MidAmerican to adjust a budget bill amount so that it is more in line with the cost of actual usage. Less frequent reviews allow customers to plan for a more predictable budget bill amount each month.
Does Budget Billing
Plan information appear on monthly bills?
Yes. Budget billing information is displayed on customers’ MidAmerican bill each month. The information allows customers to compare the budget bill amount with what would be due that month if the plan was not in effect.
During the 12-month Budget Billing Plan year, customers are likely to have a difference between the amount billed and the total amount that would have been billed if the plan was not in effect. Customers may have been billed for more or less energy than what was used. Any difference is noted in the Budget Billing Plan section. The difference is normal and is part of how the Budget Billing Plan works.
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. If more energy is used than what is billed, MidAmerican is owed. If less energy than what was billed is used, the customer is owed. There are two options available at the end of a plan’s year: Rollover or Apply.
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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. |
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Apply: The money owed to MidAmerican or to a customer is included in the 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. |
How
can I view or receive a proposed Budget Bill amount for my account?
To view a proposed budget bill amount, access
My Web Account and select
Start Budget Billing. Follow the prompts to enroll online. A minimum of three months’ usage is
needed to enroll online. Once enrolled, the Budget Billing Plan will be reviewed quarterly.
To have a semi-annual or annual review, to have the difference at the end of a budget year
applied to your bill, or to receive a proposed budget bill amount for a current or potential
location call MidAmerican at 888-427-5632. Customer service associates are available
24 hours a day, seven days a week to assist you.
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©2008 MidAmerican Energy
Holdings Company. All rights reserved.
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