The winter and summer months are when many people use more electricity to heat and cool their homes. Higher consumption can mean higher energy bills.
Traditional budget billing is one option for customers. Signing up for Kentucky Power’s Average Monthly Payment (AMP) plan is a better option that can help customers manage their budgets with more accurate monthly bills.
The AMP plan is calculated based on a customer’s 12-month average bill amount. This plan recalculates each month and applies the new average amount moving forward. This option avoids the potential of accumulating a large settlement balance that is sometimes seen with the traditional budget payment option.
With the AMP plan, 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.
At the 12-month anniversary, any remaining balance is applied to the AMP monthly payments for the next 12 months to further avoid a settlement balance.
A settlement balance 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.
This 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.