What is an Average Payment Plan? It is an agreement worked out between a REP and a customer that allows the customer to pay approximately the same amount for electricity each month, with the balance to be trued-up periodically to account for over or under payments. All REPs are required by the PUC to offer average payment plans.
If you pay about the same amount for electricity every month regardless of usage you may be on a levelized or average billing plan. If this is the case, you may care about the time of the year you decide to change providers because you may owe a balance to the provider you are leaving. Also, there may be times of the year when the provider will owe you money if the account is closed.
Be mindful of these facts when deciding to go on a level payment plan or when choosing to switch from your current provider to a new REP. This hazard has surprised many customers.
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