Flat rate/fixed rate bills

[Cumberland]

We just got something in the mail about a flat rate electric bill based on our last 12 months of use, and a fixed rate gas bill of 1.14 therms. What are the pros and cons of these? Last summer we racked up some huge energy bills and I would love to minimize the impact of those.

I do flat rate billing for our gas and eletric. I think it is very helpful for budget and planning purposes. I started both after living here for a year (a requirement w/ our utility) and in the late fall when the bills start going up.

It seems like the best part of accepting the flat rate is the predictably in regards to your budget. But what you gain with predictability is "lost" in a sense by giving the companies "more" in the more temperate months as your paying on the annual average. And the benefits of "predictability" seem less important for someone like you who probably knows already what a typical summer bill looks like - hence, you can plan ahead already and spend your time trying to implement energy savings throughout the entire year through permanent changes e.g. better insulation.

ETA: cross-posted with Nellie.

[SuzySunshine]

I think with gas prices continuing to increase it probably makes sense.

Wait...maybe I didn't understand. Is it a flat rate or billing that is averaged over the 12 month cycle? Mine is averaged with flexible rates. In the 12th month, we pay any difference or get a credit. I guess that means we are paying the yearlong average over 11 months and giving the utility money in advance but the predictability is worth that trade.

Or maybe it's me who's confused?

I'm confused about who is confused but I think it is me. I re-read and since it says 1.14 per therm, I think you are choosing to bet that fixed rate will be a better deal for a certain time frame?

I wonder if those sneaky companies let you win if you bet right? I have some vague memory of past offers in which in the next year you make up for the "deal" you achieved in the previous year.