Need advice / help about electric company

[TinysMom]

Backstory first - questions for advice / comment at the end...in red.

I pay our electric bill online and I usually go on the website a few days before I'm going to make my payment - just double check my figures - and then schedule the payment. We're on a "equal monthly billing" plan - that we switched to around last April....and its not been a big deal.

Our electricity bill here is enormous....in the summer - to keep our house cool - it can run us $500 and up for our electric bill. In the winter - it drops down to about $180 - $200 or so. Spring and fall are around $250 - $300.

So I switched us to the monthly billing earlier this year - before summer hit - knowing that by the time we needed to come up with any extra (they set us up at $350 per month)....the less expensive times would've come and we'd be down to not owing too much.

I hope that makes sense.

Last night I went ahead and opened the electric bill to find....we owe $1800 by 11/24.

Turns out the decided to do the reaveraging this month - and our bill will go up to $466 per month - which is hard - but we can manage it.

But $1800 by 11/24? Ha ha ha. Yeah....right. I have $350 set aside...I might be able to go to $400 or even $500 if I absolutely had to.

I'm putting this information here and not out in the open forum because I really don't want everyone to know the situation....

I'm calling the electric company in the morning to see what (if anything) can be arranged. Our credit isn't exactly the best and we've been late more than twice this year - so they're probably not going to want to work with us.

The worst part is...Art will be getting a bonus of around $1,000 at the end of the year. We were going to use that to start a cash emergency fund for when problems arise. If we could hold off till then - we could use that to pay for a large chunk of this.

Some of the things we've done so far - or are doing tomorrow:

• Email the person in charge of the 401K Art has - we already have a loan out from them - but can we renew it and get more? Hate doing that...and it would take 10 days or so for the money to clear the bank...but that is an option we're willing to try.
• Look into getting a loan elsewhere - highly doubtful with our credit history...but we're looking into it.

We can't ask family members - our parents just don't have it and we're not close enough to other family members to ask them.

So here come the questions - and I'm hoping y'all have good information to help us...

• Is there an agency that we can work with to help us keep the electricity turned on? It isn't the same as if we're in the Northern states and HAVE to have it on for heat...but still yet.
• Any other ideas you can think of for raising money or borrowing money? I would take stuff to the pawn shop - but I don't have any gold or anything like that. I might have some dvds or cds....but I don't think I'd raise anywhere near enough money.

I can't believe I'm sharing this here - but I am desperate to find some sort of a way to get the electric company to work with us on this. I didn't think the "smoothing over" of the monthly account would be till April - by then - it probably would've been around $300 - $400....and that would've been do-able.

But this...yikes.

BTW - Art can't get his bonus early - its basically paying him back for extra "paid time off" he bought for this year. The money comes on a set schedule....and I don't think he can take any loans out against his future pay (that we've ever heard of).

 

[JadeIcing]

Honestly give them a number under the max of what you can pay right now. Than give them a date where you could give them another payment. Go to them with some idea of what you can do.

Till you talk to them not much I can say. I will say this may sound bad but let the call "drop" than try someone else if they are not giving an inch. :?

I hope you can figure something.

 

[JimD]

Kind of the same thing happened to us.

We're on a planned payment that's SUPPOSED to work out even at the end of the year.
But, with the rate increases and all, we came up owing a bunch extra.

On top of everything, our monthly rate went up too.

We were able to work out a payment plan with them that was manageable.
We'll be paying a bunch of interest, but it's better than sitting in the dark.

I hope things work out okay for you.

:hug:

 

[Bo B Bunny]

Did you pay the extra during the lower months? That's what I would have done so that it wasn't SO high now. But hindsight is 20/20.

I would tell them that it seems excessive and you can't pay it all at one time. They SHOULD allow you to spread it out over a few months. I won't go on a budget because I've heard so many people have had the same problems.

We have places that will work with people but I think it's on a state level. You could call the state office building and tell them about it. The electric company should have told you it would be high at the end or set you on a higher budget knowing the cost was increasing all summer.

 

[TinysMom]

Bo B Bunny wrote:

Did you pay the extra during the lower months? That's what I would have done so that it wasn't SO high now. But hindsight is 20/20.

Bo - I'm not sure if you're talking to me or Jim here - but I can answer for myself.

We started the plan in April...which was right at the start of the expensive season for us. Our bill is just now dropping below what it would've been at the $350 average - so we haven't had a chance to pay "extra" on what we would've used.

The kicker on all this? We were going to up our payments to $400 starting in January (on our own) so that this wouldn't happen to us in April...

I would tell them that it seems excessive and you can't pay it all at one time. They SHOULD allow you to spread it out over a few months. I won't go on a budget because I've heard so many people have had the same problems.

My hope is that they will recognize that it is excessive - and that it hasn't been a full year yet. I hope to get the name of the state agency to contact about this and mention that my next call is to them if we can't work out something.

We have places that will work with people but I think it's on a state level. You could call the state office building and tell them about it. The electric company should have told you it would be high at the end or set you on a higher budget knowing the cost was increasing all summer.

I'm not sure who this agency will be....

 

[TinysMom]

JimD wrote:

Kind of the same thing happened to us.

We're on a planned payment that's SUPPOSED to work out even at the end of the year.
But, with the rate increases and all, we came up owing a bunch extra.

I suspected that might happen to us - which was why I was planning to up our payments to $400 in January (when we have another bill paid off totally).

I figured that by then - we would be closer to getting it way down. I mean - like I said - in the fall/winter our usage drops dramatically and we'd be making up for all that we use in the summer.

On top of everything, our monthly rate went up too.

Ours went up by $116 per month...which is going to be hard but doable.

I had been planning on switching electric companies once we were done with the one year thing (which I was told would end at the one year anniversary of our date entering the program). With the other company- if we commit to a 2 year term - we can get a rate locked in.

We were able to work out a payment plan with them that was manageable.
We'll be paying a bunch of interest, but it's better than sitting in the dark.

Really? I am hoping that they'll work with us on something. I'm thinking that our best option is to pull money out of the 401K if we can do so (which we really hate doing). That would hurt our current budget the least -and then in late Dec/Jan - we can set up our emergency fund again.

Its just that between Sasha's vet bill, paying Eric's tuition, helping him with some of his bills - etc. - our emergency fund is not only shot - but its like totally empty.

On top of that - my hours for work have been dropping...so my pay is down. (They're starting to pick back up again).

I may PM you for some more information though....

I hope things work out okay for you.

:hug:

 

[TinysMom]

I just want to add one more thing here...

Normally, when I'd pay the electric bill (along with water bill, phone bill, etc) - I would "overpay" them.

For instance - let's say the electric bill was $318.00. I'd pay either $325 or $350...knowing I'd have a credit the following month.

When I called the electric company in April to set this up (because I could see our electric was going to jump sky high and we had some other things happening)....she gave me an estimate of like $318 or something and I said, "Let's make it $350...that way I won't have as bad of a surprise at the end of the period...".

So I had them push the estimate up higher because I didn't want this to happen.

Then our a/c went out - and we had to use window air conditioners - which made the bill almost worse!

Anyway - I'm going to try to find out what agency oversees the electric company here in Texas so I can be ready to contact them if need be.

I suppose the one good thing is that at least it isn't 113 outside anymore!

 

[slavetoabunny]

I'm so sorry that you received this unpleasant surprise. I had that happen one time with a water bill. Utility won that round. Have you checked our any of these resources:

http://txipl.org/assistanceprograms

I really do think that they want to work with you. Maybe offer to spread the extra payment over a year?
​

 

[Bo B Bunny]

Peg, I was talking to you.

Start with the Department of Energy, regulatory commission. Then if that doesn't work they can refer you to the correct place. I would maybe think about the Department of weights and measures, the attorney general, and check city agencies as well as the Texas state ones.

 

[TinysMom]

slavetoabunny wrote:

I'm so sorry that you received this unpleasant surprise. I had that happen one time with a water bill. Utility won that round. Have you checked our any of these resources:

http://txipl.org/assistanceprograms

I really do think that they want to work with you. Maybe offer to spread the extra payment over a year?
​

Thanks - I actually just found that site right before I checked back here again.

My head is just spinning from all this. I'm thinking that we're going to try to pay off the $1800 (if we can) right off and then get off the average plan and go back to paying every every month whatever the bill is....even though it can get really really high in the summer.

Even if we spread the payments until Feb. or something - and use Art's bonus for this....that would work for us.

I'm just tired of always feeling like we're behind. It all started over a year ago and it snowballed and we're at the point now where everything gets paid...but just at the last minute and because our credit got screwed up over a year ago - we can't seem to pull ourselves out of this.

We had been talking about going on a "spending fast" (Art found a neat article about it) and all - even getting rid of direct tv and our home phone and just using our cells.

I know we'll find a way to make it through this....and within the next few months we'll have our small credit cards paid off (we don't have any large ones).

Its just - things like this really put me in a tizzy. I knew this was going to happen - but I had expected it to be about $300 - $400 in April - not $1800 now!

:shock:

 

[GoinBackToCali]

Normally.. what happens is, and this happened when I seperated from Rick, I found myself with a water bill of almost $400...they let me make arrangements where I STILL had to pay the regular bill of say $42 a month, but I also had to pay another bill of $42 till the $400 was paid off. Fortunatly I made 2 payments and my child support kicked in and I paid it off.

Why do you have to wait till tommorrow and lose sleep? Here you can call 24/7 and make arrangements. I am more than willing to bet you they do a payment plan for that balance.. but you still have to pay your monthly bill as well.

As for being late.. bahhh.. the $400 was for a bill I thought I had paid like4 years prior from the LAST time we had seperated and I needed service in my name..actually, Rick, who was in charge of bills.. told me he took care of it... he fibbed.



Not to be stupid.. but why on earth did you get off levelized billing. I am on it.. and for me it's more cost effective to be on it year round than to be on it partial year.. cause I know when you get off it.. you get that nasty nasty nasty surprise..

 

[Bo B Bunny]

What is levelized billing, Zin?

and Peg, I think unless you have a crudload of money, you always feel like you are behind in everything or at least on the edge of it. Or most people do right now.

 

[Elf Mommy]

I think even if you have a bunch of money, everyone in the US is living beyond their means in most cases...sigh... Hubby and I are always amazed at the amount of money we made at the end of the year when we pay taxes. Where it goes is such a mystery.

I hate the paycheck to paycheck feeling!!!

 

[TinysMom]

GoinBackToCali wrote:

Why do you have to wait till tommorrow and lose sleep? Here you can call 24/7 and make arrangements. I am more than willing to bet you they do a payment plan for that balance.. but you still have to pay your monthly bill as well.

Here they're open 8 am to 8 pm Mon - Sat.

Not to be stupid.. but why on earth did you get off levelized billing. I am on it.. and for me it's more cost effective to be on it year round than to be on it partial year.. cause I know when you get off it.. you get that nasty nasty nasty surprise..

Zin - I have absolutely NO IDEA how we got off it- that is the kicker.

It was my understanding when we signed up for it in April that it was going to run for 12 months....which meant that next April they would be making any changes. I was told it was a "12 month plan".

Is it April already? Did I miss something? Like December, January, February & March???

I've seriously been in tears about this all day...

I know we'll figure something out - its just a matter of waiting to be able to talk to various people - like the electric company - and like the 401K person - and well - yeah....just...

But if the plan had gone the 12 months like I understood it was supposed to - now that our electric bill is dropping (in usage) - we would've been ok and survived.

Now?

I have looked into switching companies - the problem is - I think they'll ask for a deposit which could be huge....(I'm looking at different companies).

Art & I have talked about a last-ditch option of switching companies - using the $350 towards a deposit that I have set aside and then after this company drops us (or we drop them or whatever)- paying them off $X per month till they get paid off - using of course his bonus to wipe out almost $1000 of it.


Edited to add: Zin - I went back and looked at our account again online. We're still on the levelized billing (they increased it to $466 per month) - so it looks like what they did is do the "smoothing" process in November - instead of next March or April...which is why we are so screwed up. We were paying the levelized amount through the high usage months and we're left owing what would've been leveled out during the low usage months.

So we're still on the levelized plan...ha ha.

 

[Bo B Bunny]

Minda, I know what you mean. My hubby works hard and makes good money but it goes so fast! My daughter was amazed when we went to target today. We got her a pair of good muck boots $30, then a few little things like gift tags, wrap, some cookies, and we got Christmas cards ...... all said and done $109. She was like OMG!!!

I said, yeah, that's why we don't have a lot of money all the time. We really try to get buy without buying a lot of "extras" but it's not easy.

 

[TinysMom]

I just wanted to add here a couple of quick things..

• Yeah - Art & I are talking about what we would/could do if we have to go without power for a bit. You know - stuff like going to the laundromat (will get all the clothes cleaned up ahead of time) - and stock up on bread and stuff that can be eaten without cooking. I doubt it will happen - but we'll be prepared. The thing that scares me is trying to figure out how to get my paperwork for my jobs and report my work, etc. I can use the library to access the internet - but printing out pages and pages of stuff? I may talk to my bosses about a short leave of absence if need be....
• We'll get a cell phone battery charger that can be used in the car....so we'll still have our cells.

and the most important one..

• The rabbits will still be fed. I buy their food even before I buy ours so that I know they always have what they need. They may have to go without their treats...but they'll live.

If worse comes to worse...at least I'll still have electricity till 11/24 and I'm sure we can figure out something between now and then.

I do have someone I could ask for money - but Art & I are both determined to not ask unless we absolutely, positively have to....and then it would have to mean because the animal's lives are in danger. Its mild enough here right now that we'll be ok....

I doubt it will get to that point....I really do.

But I'm preparing for the worst - because that is just the way my mind works!

 

[JadeIcing]

I don't think it will go that far. Usually as long as they are getting something they are ok.

 

[BlueGiants]

Peg,

I'm sorry to hear they hit you with such a huge bill! There are a couple of websites that might help:

Public Utility Commission of Texas
http://www.puc.state.tx.us/ocp/facts.cfm

State Energy Conservation Office
http://www.seco.cpa.state.tx.us/hp_links.htm

From what I was reading, if you make a "good faith" effort to pay the bill, even if it takes a few months, they will not be allowed to shut off your power. UGH! What a miserable time of year to be hit with such an expense! What a bunch of GRINCHES!

 

[TinysMom]

Thanks everyone for the help. I was just so stunned that I couldn't even think of where to go for help or what type of help to look for. We've not had a problem like this before....that I can remember anyway.

The current plan is for me to go to work in the a.m. and then check Art's home email when I get home to see if the 401K person has answered our questions. Once we know IF we can get the money - and have an idea of what we're looking at for a time frame...then I will contact the company tomorrow afternoon. If we can't borrow from the 401K then we have another place to contact before I contact them....but I really think our credit is too screwed up to be able to borrow from them.

Still yet....I suppose it could happen.

Anyway - once I have an idea about what our money situation is - then I will contact them and try to work on payments.

I'll update y'all later about what we found out. I don't think we'll wind up in the dark...but we figure its best to be prepared "just in case"....so we're thinking of all the things that will be affected.

Thanks to those who have emailed me, PM'd me and also posted here. You've given me lots of great leads to go on.....

 

[TinysMom]

I just got off the phone w/ the electric company....and have sorta good news...and bad news.

I didn't call yesterday because Art & I needed time to talk about our options, find out about his 401K and if we could get a loan, etc. I wanted to know where we stood financially before I called them so that I wouldn't make some sort of arrangements that we can't honor.

So the bad news first. They won't make payment arrangements with us for this amount. The gal I talked to was EXCELLENT - she was trying her best to figure out how to help us make arrangements. But we've had more than 2 disconnect notices during the year (never been disconnected) and with our credit rating from screwups we had last year when we almost lost the house - we don't qualify for a payment plan.

Its ok...I saw that one coming as did Art.

What I didn't tell them - is that I didn't realize until just the other day that we could use other electric companies - and where we pay 19.3 cents per kwh from them - there are others here in Texas that are as low as 13.6 cents.

So once we're free from them - we're moving on to another company - and figure we'll be cutting about 1/3 of our bill....every month WOO HOO!

I know - you're saying - "After all that - how can there be good news?" Right?

Well - as long as I pay the $350 I had budgeted for this Friday - the electricity will not be disconnected. This was for the late bill (I always seem to be a month behind lately on this one bill).

The $1100 "wash-up" fee (turns out we'd entered the plan last November - I was thinking it was April....oh well. I remembered it being cool when I sat outside in the chair and talked to them on the phone...)....so it was time for the plan to correct itself. Had we owed less than $999 - it would have rolled over onto next year's bill and been added to the estimates...but because it was over that amount - we have to pay it. I should've asked why the wouldn't roll the $999 over and let me pay the rest...oh well.

So the good news is - we won't be disconnected for at least 3-4 weeks minimum.

We're unable to get a debt consolidation loan....which I would've used to pay this off and pay off a couple of other bills.

BUT - we can take a loan of $3300 from his 401K and that is what we're discussing. We currently have a loan - so if we take out this amount - we would have another $275 per month that we have to pay on the loan (it comes out of his paycheck)....but the $3300 would be enough to pay this off - and pay off one loan and two credit cards - which would add $225 to our budget since we wouldn't have to pay them anymore. Plus the 401K loan will be paid off in September of 2010...basically....21 months away.

I sat down this weekend and looked at our income and outgo to make sure we can make things work. I've decided one thing for sure - we're going back on the envelope system for budgeting. In fact - we're going back on budgeting for sure!!!!

I'm waiting for Art to wake up so we can talk about this later today...but I'm guessing that he'll agree that we should take out the loan from the 401K....this way - when he gets his bonus at the end of December - we can keep it as an "emergency fund"...something that's been drained three times in the last three months. (We'd had it at a low level though - this time we're going to work on upping it).

Anyway - I'll cease the rambling to say - it looks like I'm going to make this month's payment....we'll pull from the 401K.....get them paid off and then switch to a lower priced company with guaranteed rates.

It will be nice...starting over somewhat with a new company.

In a way - I look at this as a blessing in disguise - because it made us really sit down and look at our income/outgo and stuff.


Edited to add: I had a friend offer to loan us the whole $1800 if needed....that happened since my last post before this one. I was in shock...but the thing is - Art & I have seen too many friendships ruined by money - and I've had it happen before. So that was our absolute last option to consider.....but it was nice to know someone cared enough about us to make the offer.