 TITLE: What Is Budget Billing for Utilities? CONTENT: Pros and Cons of Budget Billing\n-------------------------------\nThere are some benefits and drawbacks to consider before enrolling in budget billing.\n### Pros:\n*   **Makes your utility bills more predictable.** Budget billing gives you a set figure to work into your budget each month instead of waiting to find out what your charges are based on your usage. It can also reduce the possibility of late payment penalties or possible disconnection since you'll be able to more easily budget your payments.\n*   **Alleviates stress.** You won't save money on your energy costs overall by enrolling in a program, but you may avoid the stress of not knowing what your bill will be or whether you'll have enough funds to pay it. So, when temperatures spike or drop, you won't have to panic.\n### Cons:\n*   **Fees may apply.** Some utility providers charge a fee to use budget billing. Inquire with your utility provider's customer service department about potential startup and maintenance fees.\n*   **Potential overpayment or underpayment.** It's important to find out what will happen if your energy costs are more or less than your utility company predicts. If you use less energy than your utility company estimates, will you be credited, and when? On the flip side, if you get to the end of the year and you use more energy than the company predicted, you may owe money for overage. Be sure you understand exactly what is in the contract with your utility company.\n*   **Risk of elevated costs in the future.** If your new set payments make you feel freer with energy usage, you could end up with significantly higher payments in subsequent cycles. Review your monthly bills to monitor your household's energy consumption: Steep increases could mean you'll pay more in the future. END