My family is on the budget plan for electric billing-PP&L (Pennsylvania Power & Electric) makes a reasonable estimate of what your average electric bill will be, we pay that monthly, and then at the end of the billing year (for us January/February), there is a settlement. If we owe because we used more, we pay a bigger amount in February, if the electric company owes us, we pay a lower amount. Usually it is pretty close one way or the other and it helps my budgeting to have a steady amount.
We received our settlement amount and the electric company owe us $160! So what will I do with this new found money? Nothing exciting – off to the emergency fund that has been hit hard recently with medical and car repair bills.
In addition to a good settlement, they are going to reduce our monthly amount for the budget plan by $10 a month. I will not change my home budget to reflect this, I will keep it the same. The extra I will put aside in the utility budget until it builds up to $100. That way if I owe next year no big deal.
The factors that led to this little bit of savings? First, and probably the biggest reason is a mild winter this year. Secondly, we did replace four windows and installed five mini-blinds (double cell insulated): both of these home improvements have helped make our home more comfortable and energy efficient.
Finally, a budget that is working!
