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What is Average Monthly Billing?
In Texas, our electricity use is largely driven by the weather, leading to unpredictable bills during the most extreme seasons: summer and winter. But with Average Monthly Billing, you can smooth out seasonal highs and lows to keep your monthly electricity bills more predictable.
Here's how it works:
- We take the average of your last 12 months of usage to calculate your average monthly bill amount.
- The amount you pay will vary slightly each month depending on how much electricity you continue to use.
- As an example, if your usage is higher during hot summer months and lower during milder months, Average Monthly Billing will spread your summer costs out over time, so your monthly bills won’t fluctuate as much.
- Average Monthly Billing doesn’t lower your actual usage charges. It allows you to pay a consistent amount every month while carrying over the balance between your actual usage charges and average billing amount.
- The difference between your actual usage charges and average monthly bill amount is either carried over each month and either charged or credited to your account when you end Average Monthly Billing.
- Average Monthly Billing is available to residential customers who have received at least one bill from TXU Energy and don’t have outstanding balances or active payment extensions. It works best if you have 12 months of billing history.
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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.
