Budget Billing
Depending on the time of year, weather can cause your electric usage – and your power bill – to change dramatically. Budget Billing is a free service that eliminates those extreme peaks by leveling out your payment, so you pay a similar amount each month.
Budget Billing Smooths Out Seasonal Bill Changes
For most customers, the highest bills are in the summer and winter, when you use the most air conditioning and, for some customers, electric heating. With Budget Billing, you can find comfort in knowing what to expect with every bill because you'll pay a similar amount each month based on annual usage. Budget Billing is not a discount program, but it allows you to better manage your monthly budget. Some months you will pay less than your actual bill, and some months you will pay more to make up that difference, keeping your bills more consistent.
Here's How It Works
1. Determine Your Budget Billing Amount
- We calculate your average monthly bill by dividing your total electric bills from the past 12 months by 12 and rounding to the nearest dollar.
- This gives you your first monthly Budget Billing amount.
2. Monthly Adjustments
- We recalculate your Budget Billing amount each month to check for significant changes in your usage.
- If there is a change, we adjust your next month’s Budget Billing amount.
- We’ll notify you of any changes a month before the new billing amount begins.
3. Billing Statement Details:
- Each month, your statement shows both your actual bill and your Budget Billing amount.
- We track the difference between what you’ve actually used versus what you’ve paid.
- If your energy usage habits change, this difference will fluctuate and may trigger an adjustment to your Budget Billing amount.
*If you discontinue or close your account, any balance will be applied to your next bill.
Related Questions
What is Budget Billing?
Budget Billing is a free program that averages the highs and lows of your electric bills by giving you an average price to pay each month. It is not a discount because you will pay the for all of your actual usage, but with budget billing it is levelized. Keep in mind that your budget billing amount may change over time as your average usage increases or decreases. We will notify you a month in advance on your bill statement when the budget billing amount adjusts.
What happens if I want to cancel the Budget Billing program?
The Budget Billing Program can be stopped at any time. However, the difference between the current usage amount and Budget Billing amount becomes due on the next month’s statement. Please contact us if you are no longer interested in being enrolled.
What are the eligibility requirements for Budget Billing?
Customers must have been at their current residence and in good financial standing with Alabama Power over the previous 12 months. Additionally, customers must not have discontinued the program in the last 12 months.
How is Budget Billing different from FlatBill?
Both programs offer an alternate way of paying the high seasonal bills. However, the notable difference is that FlatBill is a contracted set price over a 12-month period while the Budget Billing amount may fluctuate depending on usage.
How does weather impact my bill?
On the current traditional rate, you will have higher monthly bills as your usage increases [For example: higher air conditioner usage during the hot summer months and higher heating usage during the winter months (with electric heating). With Budget Billing, the cost of your seasonal bills is spread out over a year.
Will I be able to view my actual usage while enrolled in the Budget Billing program?
Once enrolled in the program, a new section will appear on your billing statement which will allow you to monitor all aspects of the program. Included in this section is the actual dollar amount of the electricity used, the difference between the current usage amount and the Budget Billing amount, and how much total accrued difference there is between what has been used to date and what has been paid through the Budget Billing payments.