Figuring out Utility bills

[mdharris68]

Can anyone that crunches numbers help me figure out if the utility company is getting in my pocket? Here's the situation:

Something to consider first. Our natural gas utility company has a couple of charges that are percentage based and figured from the actual gas usage. So if I use x amount of gas and it costs me 20$, the other charges are a percentage based on 20$, added to the fixed charges and totaled for a final bill.

So this month, the weather is bad and they decide to estimate my useage based on last years usage. I notice that my bill was tripled. If I were to pay this charge and next month they read my meter and I have only used what they charged last month and no more, it would stand to reason that my bill would be zero. But they still have the service charge just for having the meter, and the reading of the meter.

Although I can't get my mind to comprehend this, I feel that I could be charged for something I didnt use. I also think there is no way a utility company that is overseen by the utility commision could get away with this. Please help me understand this. I don't want to call them up for nothing.

Any thoughts or comments? Thanks

[OntarioMan]

Just because they over-estimate one month does not mean that you get the next months "fees" for free - it just means that next months fees are subtracted from any credit balance that you have.

This Month
- you actually use $40 in gas + $5 in variable fees + $5 fixed = $50
- they estimate you used $80 in gas + $10 in variable + $5 fixed = $95
- you pay the $95
- they read the meter
- they owe you $45, i.e. you have a $45 credit balance

Next month
- you actually use $40 in gas + $5 in variable fees + $5 fixed = $50
- you have a credit balance of $45
- you now owe them $5 ($50 total bill - $45 credit = $5)
- you pay the $5
- your balance is $0

The total you've paid for the two months is $100, which is exactly what you should have paid - no more and no less.

[mdharris68]

Thanks for putting this in a way that I understand it.

[frogmammy]

Good grief! Where do you live that they pay you BACK (credit you) when they make a wrong estimate??

Mon

[sage_morgan]

They do that here, too. It's confusing, but it does come out in the wash.

[Wildwood Flower]

They do that here in Oklahoma. I had 2 months free--Oct. & November. This months was under my own guesstimate--so I'm counting my blessings.

Who knows how they figure it all out. We have the option of paying the same thing every month throughout the year (averaging).

I don't do that. Somehow it feels better to get some lighter months in the summer--even though the bills are generally higher in the winter.

[Beeman]

Originally Posted by frogmammy

Good grief! Where do you live that they pay you BACK (credit you) when they make a wrong estimate??

Mon

I would say every utility must do this, enforced by the state's utility commission.

[MaryNY]

Ha! Around here the utility company has added surcharges to all the bills in warmer than usual winter months because customers DID NOT use "enough" electric and gas -- less than the utility company had estimated would be used and which it had bargained for/purchased in advance!! So everyone ran around freezing their whatchamacallits off for a month and then got billed extra for not turning the heat up!! I think our Public Service Commission has put a stop to that, but one never knows when the utility company will think up a new way to sneak in another charge.

MaryNY

[SDjulieinSC]

One thing to keep in mind is that very often gas meters are read in ccf's and billed in therms. There are also some variables involved, such as a meter multiplier (some meters read a bit different than others),heat factor (energy content),and rate. There are also usually some form of tax, excise tax, sales tax or franchise fees that may or may not be detailed in your bill.
This is why the difference you see this month on your meter from last months read may not seem correct if you are using only a rate per therm calculation.
If your meter was in fact over read( or over estimated) your new bill cycle will start with the read on your bill, if that number is lower than the actuall meter reading you will not be charged twice, "new' use wont count (be charged) untill it registers over the billed read.
Clear as mud? I understand it....sorry I can't say it better, guess that's why I'm no teacher.

[frogmammy]

In the St Louis (MO) city, they have been known to "estimate" monthly gas bills for well over a year....straight! And no, they never refund/credit your account....

Mon