Power company billing (estimated usage)

[JustJason]

So In my area (mass) we had a terrible ice storm last month. Some people were without their power for 2 weeks. I consider myself lucky in only going a week without it myself.

But now some people are getting their bills and they are furious because the bills are 30 to 40 percent higher than the previous month, when they were without power for 25 to 50 percent of the month. It's all over the news here now.

The power company says they use "estimated usage" for billing. Can someone explain this to me? How does the power company "estimate" my usage? In my eyes... I either use power or I don't... and I should be charged accordingly.

To make matters worse..... The power company is saying that if you wish to dispute your bill, pay this months in full, and they will deduct the difference from next months bill. I call this BS personally.

But they also say they can read (according to the news) the meters remotely. How the 'ell can they read what is essentially an amp/hr meter remotely? I mean.... my meter does not hook up to a phone line or anything like that. Other than sending a guy out to read the thing.... how does the power company know what i'm using for power or not?

 

[Docknocker]

Re: Power company billing (estimated usage)

Was subject to the same ice storm, my power was out for 7 days.
The new meters are set up to be read remotely. Your power company just drives by slowly and obtains your reading remotely. All you can do is contest the charges by the amount of time you where without power, which they already know.

 

[SuzukiChopper]

Re: Power company billing (estimated usage)

The "estimated usage" is based on average usage of your parcel over X number of years/months/days. Yes you either use power or don't, but your power use habits will rarely change. There is always a base meter reading, the estimated usage is used for billing purposes and depending on the type of billing (here we have something called equalized payments) you'll either see a refund or additional charge on one bill after the next actual meter reading (usually 1 year). The remote reading is done using RF and like mentioned, they just drive by slowly and can read the meter without entering your yard.

 

[DJ]

Re: Power company billing (estimated usage)

"Estimating" bills is easy. They just look at your average useage over a period of months and divide. Simple math.

Whether it looks like it or not, your meter has a tansmitter that can be read by a power company reader.

You DO NOT have to go on the "estimated plan". Most power companies give you the option. When you signed up for power YOU chose "estimated".

However, changing course the middle of the game is not always immediately allowed. You need to give the power company notice that you want to change.

Personally, I like the estimated bill. It evens out the spikes in the billing cycles so that I can plan a budget.

It must be a slow news period for the media to be jumping all over this one.

 

[mthieme]

Re: Power company billing (estimated usage)

In Baltimore, BG&E will estimate usage only if they can not read the meter (or if you are on their Budget Billing Plan).
Their formula is simple....take the highest bill in the past five years and multiply by 3. One house I had, the meter was inside. I had to take the readings myself and mail in little postcards every month.
Obviously, they need to pay for all the overtime it took to repair all the lines.
Personally, I would pay a reasonable portion of the bill and let them play catch up.

 

[DJ]

Re: Power company billing (estimated usage)

Obviously, they need to pay for all the overtime it took to repair all the lines.
Personally, I would pay a reasonable portion of the bill and let them play catch up.

Pretty cynical there nthieme. It doesn't work that way.

I wouldn't do that-short pay. You MAY win a battle but you WILL lose the war.

 

[BoatBuoy]

Re: Power company billing (estimated usage)

Water meters and elect meters are not reset to "0" at the beginning of the billing period. They're like an odometer in a car, not a trip odometer, but the ordinary odometer.

If your power is out, it's not turning.

When they estimate, they're billing on average usage as has been mentioned.

At some point, they will actually read, either eyes-on or remotely, that meter and make the appropiate billing adjustment.

In any case, you are not getting billed for something you haven't used, or won't use in the near future.

If at some point you request termination of service, all debits/credits will be balanced.

 

[i386]

Re: Power company billing (estimated usage)

Their formula is simple....take the highest bill in the past five years and multiply by 3.

I should have got them to estimate my boat restore.

 

[DJ]

Re: Power company billing (estimated usage)

I should have got them to estimate my boat restore.

I think boat restoration estimates should be squared or cubed.

 

[gss036]

Re: Power company billing (estimated usage)

Our company uses a budget plan, about the same a those mentioned above, then once a year they readjust and either one of makes up the difference. That way you know what you will be paying every month.

 

[OldePharte]

Re: Power company billing (estimated usage)

I feel your pain, but go ahead and pay the bill and they will eventually balance your account with your actual usage.

For years, I had to pay estimated usage for the entire year! They would read the meter once a year and we would play catch-up during the next year's billing cycle. Just one of the joys living in a rural hilly area powered by a Co-Op. Two years ago they installed remote reading meters, so I get the monthly bills now. Easier on the budget.

 

[HVSTRINE]

Re: Power company billing (estimated usage)

Here in SW Wa they have begun installing meters that are tied into a computer at the billing office. They don't even have to leave the shop to see what you use anymore. Our business has one of these. Our house has the inside meter and we have to send a card in every month. If you forget/neglect to send in your card they charge you for the same period in the previous year.

 

[rwise]

Re: Power company billing (estimated usage)

PSO trys to do that to me sometimes, when they are lazy and don't wish to read the meter. I just go out and read it myself and pay what I think should be payed and place an "E" by the payment. I also call and b!tch about it, I pay a charge every month to have it read, and they will not drop that charge for not reading it!

Also if you have the red faced meter and everything is in place they do not need come out and drive by to read it, they know when you use power and when you dont. I can get on a plan where I go on-line and chose what power company I buy from at what time of day so it costs less. I can also see on-line how much electricity I have use so far in real time.

I hate it when they try to strong arm you,,,,,

 

[tashasdaddy]

Re: Power company billing (estimated usage)

our power company, has installed the remote read meters. i don't know how it works, but their computer is able to read about 3/4 of the meters here, with out having to pay meter reader.

 

[Bob_VT]

Re: Power company billing (estimated usage)

JJ the power company will NOT turn off your power if you miss a bill or do not make a full payment for only a single month.

Thousands are in the same situation in NE.

When the first oficially "read" bill comes out it will be corrected...... they are not going to cheat you.

Contact the States Attorney Generals Office and ask them...... the Power Companies are under tight regulations.

 

[MrBigStuff]

Re: Power company billing (estimated usage)

I live in eastern MA and we lost power for about 3 days. I saw a segment on the local news about this issue and I could've sworn I saw the word ACTUAL next to the reading on the statement they showed for 250ms. When they are estimated, they show that next to the reading.

But now some people are getting their bills and they are furious because the bills are 30 to 40 percent higher than the previous month

I'm not sticking up for them but I would expect that. December is typically a higher use month than November anyway. The estimate is derived from the prior year's usage in the same time period.

How the 'ell can they read what is essentially an amp/hr meter remotely?

There are several technologies available. One is described above where they need to get "close" to the meter. Another has been around for 20+ years and they use the power lines to send and recieve data. You can even buy commercial electronics for your own home today that use the power lines to control devices within your home. It's not rocket science

 

[DJ]

Re: Power company billing (estimated usage)

I'm not sticking up for them but I would expect that. December is typically a higher use month than November anyway. The estimate is derived from the prior year's usage in the same time period.

Well, yea. What do you want them to do? Come out and look? That, you WILL defintely get a bill for.

It is higher because December is a high use month-duh!

Pay it and go on. It will be balanced in the future. The utilities are too highly regulated to even THINK about ripping you off. Unless you think the government is all honest.

We won't EVEN go there.

 

[JustJason]

Re: Power company billing (estimated usage)

Good conversation guys...

I don't actually have an issue with my bill...(yet) I haven't gotten mine in. I was writing more along the lines of the things I was hearing on the news and reading in the papers.

 

[DJ]

Re: Power company billing (estimated usage)

Good conversation guys...

I don't actually have an issue with my bill...(yet) I haven't gotten mine in. I was writing more along the lines of the things I was hearing on the news and reading in the papers.

Having dealt with the Media (personally) I take what I hear from them as about 20% accurate. I could relate stories but I will not.

They tell what sells, not the truth.

 

[JB]

Re: Power company billing (estimated usage)

I haven't read anything about the averaging option.

I haven't signed up for it, but my electrical usage in summer is about 3 times my winter usage. I heat my house and water, cook and dry clothes with propane; propane usage in winter is 2 or 3 times my summer usage. I like the propane because it is still there when the power is out. . .I can take a chill off my house with the propane oven/stove and I still have hot water.

Anyway, here I have the option of being billed 1/12 of my average annual electric usage each month, with a correction against actual usage annually.

I haven't opted for the average billing because I don't have the same option with my propane supplier. Monthly electric and propane usually total about the same year-round.

Is the annual averaging option available elsewhere?