Dominion/Wash Gas budget plans

Hi all,
sorry if this is the wrong forum section, if so I'll move it somewhere else.

Is anyone using either Dominion Power or Wash Gas (or both) budget plans, which average out bill payments across the year and try to curb seasonal fluctuations in the bills? I've been considering it and am wondering if it's worthwhile.

Thanks for any info
- A

 

I use the budget plan for both gas and electric. I think is worthwhile. The gas tends to underestimate the amount so I usually increase it .

 

DO IT! Been on the plans ever since 1995. It makes budgeting so much easier.

 

I third the recommendation. Love the budget plans!

 

I've been doing the budget plan for both for years, my electric bill just went down by $16./month - yea! This time around on my gas bill I only had to pay $3.00 extra, not a bad estimate there either.

 

We have been doing the budget plan for about 6 years since we moved from our townhouse into a single family. I almost passed out when we got our first electric bill in July/August. Been on it ever since!!! We do both gas and electric on the budget plan.

 

Other than spreading the amount evenly over the 12 month period, I do not see any point of this. I am still paying what I consume correct? Can someone please explain if there are other benefits?

 

I agree. I want to pay for the exact number of therms used for that specific month. If I notice my usage going up then I will adjust accordingly.

 

kris & KT - you are THAT good at budgeting, then there is no benefit in the budget plan for you. IF, on the other hand, you have a job that some days requires one shower and other days require two - OR - you have unruly teen agers that take "Shower Hour" seriously, then the budget plans are the way to go.

 

kris/KTdid: the plan averages out your usage over the year, so you still pay for what you use, just not all at once.
For example, an electric bill this month may be $150 but in the winter be only $40. The budget plan would have you paying maybe $100 now and $100 then, and if you pay a little much, they lower the budget payment price in the next cycle. That's my understanding.

So yes, you're still paying only for what you consume in theory, but it keeps the bills from being painfully high for several months. (But then it's not necessarily comfortably low for the rest of the months.) I'm still thinking about it.

 

Re: Dominion/Washington Gas budget plans?

technosapien and others--

Just saw your posts--I just wanted to add--That it all "balances out" in the end! Sorry I couldn't resist--too much sun in Florida now while we are on vacation!

Have a good week--

Foodie

 

Yep, OUr bill went up once and then this last bill was recalculated due to less use of the heating in the last indian summer and AC in APril and May and our new payment is now $49 less

 

Balanced budget is the way to go......

 

I tend to budget for both Gas and Electric on a monthly basis combined. I find that as one goes down the other goes up depending upon the season. If the combined total for a given month exceeds my budget, I adjust accordingly (use less heat in winter to drop gas, and less AC in summer to drop electric). Also, any chance I get on reasonablly weathered days to open my windows and let nature take care of things, I do (spring/fall). Only down side is that allergies crush me. So I stock up on Zyrtec.....and yes, I factor the cost of Zyrtec into estimations on savings for those days the windows are open and nature is regulating my home temp.

qzpmal

 

I'm with you, qzpmal - not on budget billing. I find, too, that the gas/electric flip flop from winter to summer, and nearly works out the same month to month. Except, usually, for May and October when I get a little break on the budget due to more temperate days.

However, I know a lot of folks on budget and they really like having the same amount on their bill (pretty much) month to month.

I think it's just matter of preferencee - both systems end up paying exactly what you use.

 

I'm on a plan with WGES where I pay the same price per month regardless of how much gas I use. The price is updated once a year and you can opt to continue at that price or go back to an actual cost per month.

 

Credit Liability!!-Dominion/Wash Gas budget plans

Here's a caveat that most don't realize...The budget plans are great, BUT, they show up as liabilities on your credit report. Soooo...if you are thinking of refinancing and the numbers could be tight, do the budget plan AFTER you refinance. Adding $200 a month to your debts, qualifying-ratios-speaking, could kill your deal. I know you pay it anyway, but when an underwriter is forced to calculate that debt because it shows on credit, it's troublesome. If your ratios are below 45%, no worries.

Happy financing!!

 

I doubt utility companies would offer a budget plan that would affect their customer's credit ratings. To my knowledge utilities are not reported to the credit bureaus. Maybe the exceptions are customers who are excessivily late or do not pay and by then the utility service is cut-off. Where did you hear this?

 

I loan money and I see credit reports. The utility companies are essentially offering a line of credit, so they report it as such, it's considered an installment. I have seen Wash Gas and Dom Power on people's reports, so they do report some if not all. As I said, most folks are shocked and amazed to see this. It could be for default clients, however, the local people I serve have excellent credit. The websites don't address it at all. It's a bummer when it shows up!

 

Yes, they call it a budget plan when it's really a deferred payment plan and that would probably show up on credit reports.

In general utilities are not reported to credit bureaus.