The winter and summer months are when many people use more electricity to heat and cool their homes. Higher electricity consumption can mean higher energy bills.
Traditional budget billing is one option for customers. However, this option often comes with a large settle-up payment at the end of the budget year. Signing up for Kentucky Power’s Average Monthly Payment (AMP) plan is a better option that can help customers manage their budgets with more equal monthly bills that minimize large seasonal variations. There is no additional charge for this budget-friendly service.
The AMP plan is calculated based on a customer’s 12-month average bill amount. The monthly AMP amount is determined by averaging the actual amount of your current bill plus your 11 previous monthly bills. Every month, the oldest of the 11 previous bills is removed from the calculation, and your new current bill is included.
Customers pay about the same amount for electricity each month, year round. That way, the costs of high usage in cold and hot months are spread over the entire year. Since the oldest bill is removed from calculations and the new bill added each month, the AMP amount will vary slightly from month to month. However, these fluctuations should be less than the variations you would see paying your actual bill each month.
A settlement balance on AMP is only due when participation in the AMP plan is terminated due to the account becoming delinquent, the account closing, or by customer request to be removed from the plan.
If customer equipment, such as a hot water heater or heat pump, malfunctions, it can contribute to a spike in electric usage and a larger than normal monthly bill. This could also lead to a large settlement balance at the end of a traditional budget plan.
With the AMP plan, the monthly payment may spike in this case and customers would be able to act quicker in realizing and correcting an equipment malfunction.
The AMP plan helps customers budget their income more effectively by having a more accurate picture of what their electric bills will be from month to month.
Customers can sign up for the free Average Monthly Payment plan by visiting their account online at KentuckyPower.com and clicking on the level payments tab, or by calling the Customer Solutions Center at 1-800-572-1113.