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What is Average Monthly Billing?
Average Monthly Billing is a program for our residential customers that helps smooth out seasonal highs and lows in your monthly electricity bills so you have more predictable monthly payments.
With this program, you don't pay less or more. Over the course of the year, you'll pay the same on this program as you would if you weren't on the program. Your bill amount will vary a small amount each month, but it will be much more predictable and easier to budget for. You'll have peace of mind knowing that you'll not have to deal with with seasonal fluctuations that could be as much as hundreds of dollars.
How does Average Monthly Billing work?
First we establish a baseline of your electricity costs by adding up past bills and dividing by the number of months of billing history we have. Then each month, we subtract your baseline average billing cost from your actual electricity costs. The difference is called the Cumulative Balance. Each month, 10% of your Cumulative Balance is either added to or subtracted from your baseline amount. This keeps your costs fairly even throughout the year and makes managing your budget easier.
You are eligible for Average Monthly Billing if you're a residential customer who has received at least one bill from TXU Energy and don't have any outstanding balances -- all installment plans or payment deferrals must be paid before signing up for Average Monthly Billing.
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Frequently Asked Questions
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My actual charges went down but my average monthly billing amount went up. Why?Your average monthly billing amount is calculated by taking the average of your bills over the last 12 months, plus 10% of the Cumulative Balance (the difference between the cost of your actual electricity usage vs. your average monthly billing amounts). So even though your actual charges may go down, the average monthly billing amount may stay the same or even increase because it takes your historical usage into account. Over the course of the year, you'll pay the same amount you would have if you weren't in the program. The key benefit is predictability, which makes it much easier to manage your budget.
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What happens if I am on Average Monthly Billing and have a balance more than 30 days past due?Your account may be removed from the Average Monthly Billing program if you have a balance that's over 30 days past due.
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What happens if I leave TXU Energy Average Monthly Billing?When Average Monthly Billing is removed from your account, the Cumulative Balance (either a credit or a debit) will be applied to your next bill. If your Cumulative Balance is a credit, it will appear as a credit on your bill. If your Cumulative Balance is a debit, it will be added to the amount due on your next bill.
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Will I be able to pay the same amount each month on Average Monthly Billing?Your bill amount will vary a small amount each month, but it will be much more predictable and easier to budget for. You'll have peace of mind knowing that instead of dealing with seasonal fluctuations that could be as much as hundreds of dollars; you'll see very small changes from bill to bill. For the average home, the fluctuations will typically range between $5 and $15 a month. Your actual fluctuations will, of course, vary according to your usage.
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What is the Cumulative Balance, and why is it part of my average bill?The Cumulative Balance is the running total of the difference between your actual electricity charges and what you have paid using the average monthly billed amounts. Each month 10% of this balance is added to or subtracted from your average monthly billing calculation. Your average monthly billing calculation is based on your historical electricity bills, but because of weather or lifestyle changes your future bills won't always match your past bills. By tracking the Cumulative Balance and applying a small portion each month, it prevents the need for a surprise "true-up" during the year.
