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Energy |
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A billing scheme which balances energy billings over a 12-month period to averages for the entire period, and bills the customer monthly based on the estimated average for a 12-month billing period. This scheme is often provided as an alternative to direct billing to offer consumers reasonably consistent energy billings throughout the year. In northern US states and Canada, this scheme can help to alleviate the sting of excessive energy costs in winter by adding part of higher winter costs to lower summer billings and reducing winter billings in return. In southern states, where billings tend to be highest in summer when air conditioning is in use, it has exactly the opposite effect. Monthly billings are typically adjusted automatically to prevent unpleasant surprises at year's end.