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Budget billing with Dominion- worth it?

I set up an account with Dominion yesterday for when we move into the condo we're renting (electric is included in our current apt., so first experience doing this). Our new landlord told me what she's paid per month on budget billing, and said it was good to sign up for. I signed up for it, but had no anticipated the additional costs I'd have to front. I was told it's a $15 initiation fee, then a $180 security deposit ($60 added to the bill for the first 3 months), which we'll get back after we've paid our bill on time for like a year. I know we can afford it, but my DH questioned if we really need this. I like the idea of knowing exactly what I'll be paying per month, but then again, it's not a big place, so I don't expect huge flucuations in the bill. Advice/experience? TIA!

Re: Budget billing with Dominion- worth it?

  • It gains you nothing.  You still pay what you use, you just don't have the changes monthly.  If you underpay, I'm nearly certain you pay a "catch up" at the end of the year.

    They charge a security deposit because if you're doing budget billing they assume you're a credit risk.  I had to pay that stupid deposit when I moved here because they claimed I was a credit risk.  Uh huh.  I've never paid a bill late ever and carry no balances on anything.  Can you tell I'm still annoyed 6 years later?

    Not that it really matters, but you can pay that deposit at once ($180) or over 3 months.  If you pay over 3, you don't get it back until a year after your third payment.  I was also annoyed about that - even though again, it mattered not at all in the grand scheme of things.

  • We do budget billing.  I don't remember a setup fee thing, but that deposit was really, really annoying. Way to make me feel like a friggin loser who doesn't pay their bills!

    However, I like budget billing b/c our summer bills were maybe $60-70/month based on actual usage. Our winter bills KILLED me. They were easily twice that b/c we have electric heat and my husband is always freakin cold in the winter.

  • We do it and didn't have to pay the deposit- just the initiation fee.  It is worth it for us because it is easier to budget, and they adjust every 6 months (?) for usage, so you shouldn't have a huge payment at the end. 
    White Knot
    Stand up for something you believe in. White Knot
  • We do it because I like knowing what we owe.

    I don't think we did a deposit.  Maybe an initiation fee... but not $180 up front.  Is that new?

    Wife, Musician, Fed, WW-er, and Mom of three little kids - not necessarily in that order.
  • I don't remember our deposit being that much.  I want to say ours was something around $75. 
  • I moved us to the budget plan when we bought our house because I like the convenience of knowing what the bill will be every month.  We already had an account with them from our condo, so I don't think we paid any huge upfront fee.  If I was paying a lot up front for the privilege of having a set monthly payment, I don't think I'd do it.  (Especially since you're starting out in the fall when you're not likely to have the huge A/C bill.)
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  • I wish our deposit was lower! We are certainly not a credit risk, so I'm assuming it's something new. Hmm... wonder if I can get out of it now, since our billing won't start until Sept. 30th.

    Thanks for sharing everyone!

  • If you didn't previously have an electrical account, you may have a deposit despite the fact that you're not a credit risk. When we lived in OK, we lived in a condo where electricity was included. When we moved to TX and had to set up an account for electricity, we had to pay a deposit simply because we had not had an electrical utility account for over a year.

    So, you may want to check and see if the deposit is just for the budget billing plan, or if you'll have to pay it regardless since you don't have a utility history.

  • I don't do it- I don't see the point. I don't like to give money to companies until I actually owe it to them. I know about what my bill is going to be, I don't need them to guess for me. I suppose if I was having trouble getting bills paid it would be a good thing.
  • We do the budget billing for both the gas and electric.  It works for us because our amounts vary widely from one season to the next.  I know there were some hefty fees just to turn the utilities on, but I don't remember a deposit.  DH and I both had utilities with these companies before though.
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  • I worked for a utility and we had this option, but I don't see any real value to it. I guess it depends on your financial situation. If you are living check to check and need to know exactly how much your bill is going to be in order to make your bills, then it might be worth it. If you carry a cushion, then I would prefer to just pay the actual amount. As PPs said, there is a "true up" at the end where you have to pay if you used more electricity than you budgeted.
  • Thanks for the additional advice!
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