How Does Equal Pay Work With PGE?

Paying your utility bills can be stressful, especially when the amounts fluctuate wildly from month to month. Portland General Electric (PGE) offers an Equal Pay program to help customers better budget for their electricity costs. With Equal Pay, you pay the same amount each month based on your previous energy usage. Here’s an in-depth look at how Equal Pay works with PGE.

What is Equal Pay?

Equal Pay is a bill payment program offered by PGE that calculates a fixed monthly payment amount for residential and small business customers. Instead of paying your actual energy charges each month, you pay the Equal Pay amount.

The goal of Equal Pay is to even out the dramatic ups and downs in your electric bill over the course of a year Your energy usage tends to fluctuate each month based on the weather and your activities With Equal Pay, you pay a consistent amount every month to make budgeting easier.

How is the Equal Pay Amount Calculated?

PGE uses your past energy usage to estimate your annual electricity costs. They take this total estimated annual cost and divide it by 11 to determine your Equal Pay monthly payment.

For example, if your estimated annual electricity cost is $1,320, your Equal Pay amount would be $120 per month ($1,320 / 11 months = $120).

By dividing into 11 payments you get a “catch up” month each year. In the catch up month you’ll pay the difference between what you already paid over the previous 11 months and your actual energy usage for the year.

How Does the Catch Up Month Work?

The catch up month occurs every 12th billing cycle on Equal Pay. This is when your account balances out any discrepancy between your estimated usage and your real usage.

If you used less electricity than estimated, you’ll get a credit on your bill during the catch up month. If you used more, you’ll owe an additional charge that month.

For instance, if your Equal Pay amount was $120 per month but your actual annual usage only totaled $1,100, you’d receive a $220 credit in your catch up month ($1,320 – $1,100). This credit would then apply to future bills.

Conversely, if your actual usage was $1,400, you’d be charged an extra $80 in your catch up month to balance out the underpayment.

How Does PGE Determine the Usage Estimate?

PGE calculates your Equal Pay amount based on your previous 12 months of energy usage. They take this average monthly kWh usage and multiply it by your current rates to estimate your annual costs.

When your account comes up for periodic review, PGE will update the Equal Pay amount using your most recent 12 months of usage history. This helps keep your Equal Pay in alignment with changes in your actual consumption.

You’ll see a message on your bill letting you know when these periodic reviews are taking place. Your new Equal Pay amount will show up on the following month’s bill.

How to Track Your Equal Pay Balance

It’s important to monitor how your actual charges compare to your Equal Pay amount during the year. Your bill will show an “Equal Pay payoff balance” that indicates if you have a debit or credit accumulating.

You can also log in to your PGE online account to view usage graphs and track your balance. The PGE mobile app provides additional tools to manage your account while on Equal Pay.

If you notice large discrepancies between your Equal Pay amount and actual usage, you can contact PGE to have them reevaluate your monthly payment. Keeping your Equal Pay properly aligned reduces the chance of a big catch up charge or credit.

Can You Change the Equal Pay Amount?

Yes, you can request PGE to recalculate your Equal Pay amount if needed. If you experience a significant change in energy use due to things like adding an EV, you’ll want your Equal Pay aligned accordingly.

PGE reviews accounts every 4 months and will adjust the monthly amount up or down if they see large differences accumulating between Equal Pay and actual usage. But you can also contact them anytime to have your Equal Pay reviewed and revised.

Enrolling in Equal Pay

To get started on Equal Pay, residential and small business PGE customers can call 503-228-6322. Your account must be in current/good standing to qualify.

Once enrolled, your Equal Pay amount will show up on your next billing statement. You’ll then pay this set amount each month going forward.

Existing Equal Pay customers do not need to take any action with PGE’s updated calculation method. The new formulas will happen automatically at your next periodic account review.

Benefits of Equal Pay

Equal Pay helps smooth out electricity bill fluctuations for easier household budgeting. Benefits include:

• Predictable bills each month
• Avoid large seasonal swings in your utility costs
• Worry less about high winter heating or summer cooling bills
• Better manage your monthly finances
• Pay the same amount every month

By enrolling in Equal Pay with PGE, you can gain peace of mind with stable electric bills. Your monthly amount will stay consistent yet keep pace with changes in your actual usage over time.