AEP Ohio’s Budget Billing Plan
estimates the amount of electricity you will probably use during the next 12 months. We use that estimate to calculate the potential cost of your electricity over the next year. Then, we divide that amount into monthly budget payments.
Increases in the accumulated budget balance may be caused by changes in usage and/or the recent increase in electric rates. The accumulated budget balance is shown on your billing statement under “Previous Charges”. The entire accumulated budget balance comes due at your anniversary month.
AEP Ohio has options available that can make your electric bill more manageable.
Our Average Monthly Payment Plan (AMP) Plan is an enhanced choice to stabilize your monthly electric billing throughout the year.
AMP is based on the average of the current month's bill, plus the previous 11 month’s bills.
With AMP (unlike Budget Billing), your monthly payment amount may fluctuate as increased usage and/or rate adjustments are factored into the monthly calculation. At the anniversary month, the deferred balance is divided by 12, and this one-twelfth amount is added to (or subtracted from) the average payment amount for the next 12 months. Show me the difference.
If you are presently on Budget Billing, but would like to enroll in AMP, please call our 24-hour Customer Operations Center at 1-888-237-7401. Please also contact us if you have any questions about these two monthly payment programs.
For more information, see a graph
that shows the difference between the plans.
Difference between Average Monthly and Budget Payment Plans
This graph shows how a hypothetical customer's monthly payments would differ based on which plan they chose. Because it's calculated using a rolling average of the current month and the previous 11 months, the Average Monthly Payment Plan fluctuates from month to month. At the anniversary month, the deferred balance is divided by 12, and this one-twelfth amount is added to (or subtracted from) the average payment amount for the next 12 months. Any difference between average billings and actual billings will be settled when the customer stops participating in the plan.
The Budget Payment Plan is not a rolling average, but a fixed average of the current month and previous 11 months.
Our Budget Payment Plan is one of several payment plan options offered by AEP Ohio. This plan makes it easier to budget for energy bills by setting a fixed monthly payment amount based on historical usage. We start by estimating the cost of your electricity usage for the next 12 months based on the historical bills for the premise. Then, we divide that estimated annual billing into monthly budget payments. Your monthly payment amount will generally remain fixed for 11 months, however, we do review this payment amount periodically to determine if an adjustment is necessary based on how much energy you are actually using.
The twelfth month from your Budget Payment Plan startup is the "settle-up" month, when the total actual cost is compared to the amount you have paid. If you paid more than the actual cost, your account is credited for the over-paid amount. However, if your actual usage was greater than what you paid over the previous 11 months, the difference is added to your bill during the settlement month.
Since your actual cost is shown on your bill each month, it's easy to monitor your actual cost against the budget amount. Again, we will review your account periodically, and if necessary, adjust the monthly budget amount to ensure that it is staying close to your actual use and cost. However, if the possibility of a larger settlement month bill is a concern, please consider the Average Monthly Payment Plan as an alternative.
Sign up for our Budget Billing Plan.
Our Average Monthly Payment (AMP) Plan is an enhanced choice to stabilize your monthly electric billing throughout the year. While this plan does not offer the equal monthly payments the Budget Payment Plan offers, this plan significantly moderates the monthly bill variation while avoiding the potential of accumulating a large settlement balance, or credit, at the anniversary month.
The monthly payment on the AMP Plan is based on the average of the current month's bill, plus the previous 11 months' bills. Each month, the oldest bill is removed from the computation, and the new current bill is included. As a result, the payment amount will fluctuate slightly from month to month.
The difference between actual billings and the average billings will be carried in a deferred balance that will accumulate both debit and credit differences for the duration of the AMP Plan year (12 consecutive months).
- At the anniversary month, the deferred balance is divided by 12, and this one-twelfth amount is added to (or subtracted from) the average payment amount for the next 12 months.
- Settlement occurs only when participation in the plan is terminated. The AMP Plan is not to be used to defer payment of delinquent bills.
Sign up for our Average Monthly Payment Plan (AMP).