Payment Plans

Even Monthly Payment Plans

Utilities may offer even monthly payment plans to help spread out your energy costs across the year. These are also sometimes called budget billing programs. These plans help with budgeting, but they don’t guarantee affordability. These programs are approved by the Public Service Commission however, you must meet the utility’s rules to join. Some plans are only available to creditworthy customers.

How it works:

  • Annual average usage/12 = monthly payment. The utility estimates your yearly usage and divides it by 12 to set your monthly payment. If you just moved in, it will be based on the person who previously lived there.

  • Example: If your yearly bill is $1,800, your monthly payment would start at $150. This amount is recalculated throughout the year based on your usage, so the amount may change.

  • Over time, you may build up a credit (you paid more than you used) or a debit (you used more than you paid for).

Important notes:

* The payment amount is reviewed and adjusted at least twice a year, but oftentimes more. 

* If rates go up, your payment may also increase.

* These plans help with budgeting, but they don’t guarantee affordability. If you ask to exit a budget billing plan and have an arrearage sitting in your budget billing amount, that will all become due when you cancel your budget billing plan.

* If you are interested in budget billing, pay close attention to your bill. Understand what you are using and don’t rely only on the budget billing amount as you might get caught off guard and get behind.

Learn more about your utility's offerings:

BGE  

Choptank  

Columbia Gas

Easton Utilities  

Delmarva  

PEPCO 

Potomac Edison 

SMECO

Washington Gas

 

Alternate Payment Plans

If you're behind on your utility bill, you may be able to set up an alternate payment plan to avoid having your service shut off. Payment plans are for when you have accrued a back bill and owe the utility money but cannot pay it all at once. 

​​​​​​​It is likely the utility will ask for a down payment before you enter into a payment plan, but you would want to call and ask as it will be specific to your circumstances. They will then look at the rest of what you owe and break it up into monthly payments that will be due on top of what you will owe that month. ​​​​​​​​​​​​​​When you agree to a payment plan, make sure it is something you can afford ON TOP of your monthly bill.

If you are a low-income customer, and are not able to pay an outstanding bill in full, the following rule applies:

The utility must in good faith attempt to negotiate a reasonable alternative payment plan.

If you are not a low-income customer, but you are unable to pay an outstanding bill in full, the following rule applies:

The utility may in good faith attempt to negotiate a reasonable alternate payment plan.

 

In negotiating an alternate payment plan for any customer, the utility must consider the circumstances and financial condition of the customer, including:

How much you owe

What you can afford to pay

Your past payment history

Any help you might get from energy assistance programs

The length of time your bill has not been paid

Why your bill is over due

Hardships that you may face without utility service

Any other relevant factors related to your circumstances

A utility may refuse to offer or negotiate an alternate payment plan if:

  • You broke the terms of the previous payment plan during the past 18 months

  • You have committed fraud

  • You have committed theft of utility service

  • You denied utility access to equipment located on your property

If you are behind on your utility bills:

If the utility refuses to work out a reasonable plan and you disagree you can file a complaint with the Public Service Commission. Learn more about how to file a complaint here.

Customer disputes may include the following:

  • The utility refused to talk to you about a payment plan with you

  • You disagree that you have missed payments under a prior payment plan during the previous 18 months

  • You disagree that you committed “fraud” or that the circumstances cited be the utility should be considered “fraud”

  • You disagree that you committed theft of utility service.

  • You disagree that you denied utility access to equipment on your property