When volatile energy costs and harsh winter weather hit simultaneously, your energy bills can become unpredictable. Downey Energy understands the importance of managing a household budget, and we have an excellent solution for smoothing out your heating costs. It's our Budget Plan, and it's a great tool for making heating costs more regular and predictable.
Downey Energy customers can choose between a 10-month Budget Plan or a 12-month Budget Plan. Both plans spread out your costs in even monthly payments, and either plan can include your anticipated heating oil costs as well as the cost of your annual service plan.
Payments begin before the heating season, so you get out in front of your hearting costs before the cold weather begins. Your bills will no longer rise during winter, because you pay only your monthly budget amount each month, regardless of how many oil deliveries you receive.
When you choose the Downey Energy Budget Plan, you pay your annual heating expenses in monthly payments. We determine the amount of your monthly bills by estimating your heating costs for the coming year. We look at how much heating oil you have used in each of the last three years (if that information is available) to estimate how much you will use in the coming year. We then use our best estimate of average heating oil costs for the year ahead to arrive at an estimated total cost.
We multiply the number of gallons we estimate for you by the average price we anticipate to arrive at an estimated total cost. If you are including your service plan cost in your Budget Plan, we add that to the anticipated fuel costs. This gives us a total estimated cost for the year, and we divide that by 10 or 12 (depending on which option you choose) to arrive at your monthly payment amount.
We use two estimates to calculate your total cost. We estimate your total fuel usage, and we estimate your average cost of a gallon of heating oil. Our estimates can be off the mark if the weather is abnormal or the price of heating oil changes dramatically. As a result, your total cost can be higher or lower than we expected.
If your cost winds up being less than anticipated, we can credit the overpayment to your Budget Plan account for the following year, or we can reimburse you.
If your cost winds up being greater than anticipated, your last bill of the budget year will be larger to cover the unpaid balance. If you prefer, you can call our office at any time and check the status of your Budget Plan account. If you choose to pay more than your regularly scheduled payment in any month, we will credit the difference to your account and reduce your final payment of the year accordingly.
For more information or to enroll in the Budget Plan, please call our office or send us an e-mail.