Energy costs can fluctuate wildly throughout the year, making it difficult to budget and plan financially. Alabama Power’s Budget Billing program levels out these seasonal peaks and valleys so you can better manage your monthly expenses.
What is Budget Billing?
Budget Billing averages out your energy bills over the past 12 months so you pay a similar amount each month. This evens out the highs and lows and gives you consistency in budgeting.
While you still pay for all the electricity you use, your payment stays steady from month to month instead of changing dramatically with the seasons.
- Predictability – Know what to expect each month for better budgeting
- Convenience – Avoid bill fluctuations from weather changes
- Peace of mind – No more bill shock from extreme highs and lows
- Flexibility – Enroll or cancel anytime for free
How Does Budget Billing Work?
Signing up is easy and free for Alabama Power customers. Here’s an overview of how it works:
- Enrollment – Alabama Power calculates your average monthly bill from the past 12 months. This becomes your initial Budget Billing amount.
- Monthly bills – Each bill shows your actual energy charges plus the Budget Billing amount you pay. The difference between the two is tracked as your accrued balance.
- Accrued balance – If you use less than average, your bill contribution builds a credit. If you use more, it builds a debit balance. This fluctuates up and down each month.
- Annual review – Your Budget Billing amount is reevaluated yearly and adjusted if your average usage changes significantly. You’re notified a month before any change.
- Exit – If you cancel Budget Billing, your accrued balance is added or deducted from your next bill.
What Are the Requirements?
To qualify for Budget Billing, you must:
- Have an active account with Alabama Power for 12+ months
- Be in good financial standing
As long as you meet these criteria, you can enroll or cancel anytime free of charge.
How is This Different From Other Billing Plans?
While Alabama Power offers payment alternatives like FlatBill, Budget Billing has some unique advantages:
- Not a contract – No long-term commitment required
- Flexible payments – Amount adjusts if your average usage changes
- Pay actual usage – You still pay for all electricity used over time
Budget Billing simply spreads out costs more evenly rather than fixing them for an extended period.
Use Budget Billing to Take Control
Budget Billing puts you in the driver’s seat of your energy costs. Here are some ways it can help you save and better manage your household budget:
- Plan and allocate funds each month knowing your payment amount
- Avoid financial surprises from seasonal spikes and dips
- Pay ahead during lower-use months to build a credit for higher-use seasons
- Stay on track with bills even during weather and lifestyle changes
- Focus on other savings goals without irregular utility bills throwing you off
See If You’re Eligible
Take control of your energy costs by enrolling in Alabama Power’s Budget Billing program. Check your eligibility and sign up today for free.
With Budget Billing, you can say goodbye to the annual peaks and valleys of energy bills in Alabama. Enjoy more consistent bills while still paying for what you use over time.