Duke Power Fixed Payment Plan
Every now and then I get one of these "offers" from utility companies. I wonder, is there anyone who actually takes them up on the "deal?" If so, let me know, as I've got some financial "deals" I'd like to offer you, too.
Here's how it works: Duke Power offers:No Surprise...No Risk...No Settle Up...No Kidding payment plan... It's called Duke Power's Fixed Payment Plan... only select Duke Power customers may enroll... you get a guaranteed fixed monthly payments ... no matter how cold or hot the weather is outside... your [bill] amount won't fluctuate with the weather.
They go on and on about how wonderful the plan is. Then, way at the bottom, the numbers look something like this:
Your Fixed Payment Plan Monthly Amount: $200.00.
Your Average Amount*: $160.00.
Your Highest Amount*: $250.00.
Your Lowest Amount*: $100.00. *Amounts were calculated using all available history, up to 24 months at this residence.
So let's see...last year I paid a total of $1,920.00 for electricity, and you're offering me a tremendous, limited time, limited scope deal where I can pay $2,400.00 instead! WOW! What a deal! To avoid paying slightly more in the summer months, I can pay an extra $480, spread out over the whole year! Man am I impressed. Seriously, does anyone actually sign up for these things? Are people really that stupid or ignorant? Sorry, I forgot. They are.
Comments
1
They were using tricky words, and fuzzy math! It's not that other people are stupid, it is just not that many people are as smart as you.
Posted by: Jay at August 01, 2005 04:09 PM (2FcUc)
2
So I take you'd pass on the deal, too, Jay, huh?
Posted by: Ogre at August 01, 2005 04:26 PM (L0IGK)
3
Sounds great!
Sign up, leave all your lights / TV / Computers / Dryer / Coffee Pot on, leave your AC set to 60 (and run a space heater to get rooms back up to 6
((or, int he winter, set your furnace to 80 and run window AC units to get it back to 6) ... hell, run extension cords to neighbors' houses and let them drink your power up too!
/TJ
Sign up, leave all your lights / TV / Computers / Dryer / Coffee Pot on, leave your AC set to 60 (and run a space heater to get rooms back up to 6
((or, int he winter, set your furnace to 80 and run window AC units to get it back to 6) ... hell, run extension cords to neighbors' houses and let them drink your power up too!
/TJ
Posted by: TJ at August 01, 2005 09:50 PM (PL7dL)
4
Is that really how Duke Power works it? Here in Colorado, Xcel Energy offers a plan called Averaged Monthly Payment. Based on your usage history, they even out your payments so you don't pay way more in winter than summer.
But, once a year, they have a "settlement month" where your payments and your actual usage are reconciled. If you used more than you payed, your bill for that month includes the difference that you owe. If you used less, the difference they owe you is credited to your next month's bill.
So the only "excess profit" they make is the interest earned on any extra money collected in the course of the year. Seems fair to me.
You might want to see if Duke has some kind of reconciliation of payments and usage. And if not, helpfully suggest that they copy Xcel's plan. ;-)
But, once a year, they have a "settlement month" where your payments and your actual usage are reconciled. If you used more than you payed, your bill for that month includes the difference that you owe. If you used less, the difference they owe you is credited to your next month's bill.
So the only "excess profit" they make is the interest earned on any extra money collected in the course of the year. Seems fair to me.
You might want to see if Duke has some kind of reconciliation of payments and usage. And if not, helpfully suggest that they copy Xcel's plan. ;-)
Posted by: Richard G. Combs at August 01, 2005 11:46 PM (vse8V)
5
GOod idea, TJ!
And Richard, this is all they've got (or at least all they'll make public). That seems like a good idea from Xcel, but doesn't the reconciliation month sort of defeat the purpose of level payments?
And Richard, this is all they've got (or at least all they'll make public). That seems like a good idea from Xcel, but doesn't the reconciliation month sort of defeat the purpose of level payments?
Posted by: Ogre at August 02, 2005 05:48 AM (L0IGK)
6
We have something like that from our Natural Gas company, it reads a lot like what you have there. I passed on it, but I know people that did it. When I asked them why the answer I recieved was, "We can just barely afford the high heating bills in the winter, especially with Christmas. At least this way we can budget better." All three that did this plan are on a very fixed income.
Posted by: Contagion at August 02, 2005 08:41 AM (Q5WxB)
7
I don't understand how people can budget to spend more money -- why can't people simply save the money they would have spent in the winter THEMSELVES, instead of paying more to allow someone else to do it?
I should offer my financial services advice to these people...at $200 a day or $500 an hour...
I should offer my financial services advice to these people...at $200 a day or $500 an hour...
Posted by: Ogre at August 02, 2005 08:59 AM (/k+l4)
8
Wow, for a single Ogre, you sure do use a lot of power!
I'd say, "Do it!" and then crank the A/C down to 65 in the summer and the heat to 80 in the winter... and keep the windows open. Oh, TJ beat me to it...
I'd say, "Do it!" and then crank the A/C down to 65 in the summer and the heat to 80 in the winter... and keep the windows open. Oh, TJ beat me to it...
Posted by: Bou at August 02, 2005 03:43 PM (5JHEt)
9
It's tempting -- maybe run the bills WAY up for a year, then get off the plan and hardly use it for awhile...
Posted by: Ogre at August 02, 2005 04:14 PM (L0IGK)
10
"[We want] to insure that in the future all citizens can be self-sufficient in all calculations related to their interests; without which they can be neither really equal in rights... nor really free."
--Condorcet
How far down has our public education system sunk, when people cannot multiply their average utility bill by 12 to produce their annual usage cost-- and a utility company can bank on it?
--Condorcet
How far down has our public education system sunk, when people cannot multiply their average utility bill by 12 to produce their annual usage cost-- and a utility company can bank on it?
Posted by: Wacky Hermit at August 10, 2005 01:02 PM (1OwrP)
11
A long way, Wacky Hermit, a LONG, sad way.
Heck, you wouldn't believe the number of 18-year old GRADUATES of high school that I deal with that have absolutely no clue how to calculate overtime or even percentages (for taxes).
Heck, you wouldn't believe the number of 18-year old GRADUATES of high school that I deal with that have absolutely no clue how to calculate overtime or even percentages (for taxes).
Posted by: Ogre at August 10, 2005 01:36 PM (/k+l4)
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