Making Sense of PGE’s Equal Pay Program

If you’re a Portland General Electric (PGE) customer, you may have heard about their Equal Pay program which allows you to pay a fixed amount each month for your electricity. But how exactly does this payment plan work and could it benefit your household? In this article, we’ll explain the specifics of PGE’s Equal Pay, including how your monthly amount is calculated, when adjustments occur, and what happens during the annual “catch-up” month.

What is PGE’s Equal Pay Program?

Equal Pay is a payment program from PGE that aims to even out electricity costs over the year. Instead of paying your actual energy charges each month, you pay a fixed estimated amount set by PGE. At the end of a 12 month period, PGE reconciles your account by comparing your fixed payments to your actual energy usage.

The goal of Equal Pay is to avoid big swings in your monthly bills. By dividing projected costs evenly, you get the convenience of consistent payments and can better budget over the year.

How Does PGE Calculate My Equal Pay Amount?

PGE determines your Equal Pay amount based on past electricity usage at your home. Here’s a look at how they estimate your monthly payment:

• PGE reviews your energy use over the previous 11-13 months. This gives them a snapshot of your household’s typical usage.

• They take the total amount of electricity used during the review period and calculate an estimated annual cost.

• This estimated yearly cost is divided by 11 months to get your fixed Equal Pay amount.

Essentially, they take your average monthly electricity costs over a past period and spread it evenly over 11 months.

When Will My Equal Pay Amount Be Adjusted?

While your Equal Pay amount is fixed for 11 months, PGE does periodically review your account and may adjust your monthly payment if needed.

Every 4 months, PGE compares your actual energy use to the amount you’ve paid on Equal Pay. If there is too big of a discrepancy, they will recalculate your payment to align it better with your current usage.

For example, if you’ve been using significantly more electricity than what your Equal Pay amount covers, PGE can increase your monthly payment to avoid a large catch-up bill later.

You’ll be notified if PGE adjusts your Equal Pay amount based on your usage. Outside of the 4 month reviews, you can also contact PGE if you experience major usage changes that warrant an Equal Pay adjustment.

What Happens During the Catch-Up Month?

After 11 months of consistent Equal Pay amounts, the 12th month serves as a “catch up” period.

During your catch-up month, PGE compares your total Equal Pay payments to your actual electricity charges for the year. If you used more than estimated, you’ll have a balance due. If you used less, you’ll have an account credit.

For example, if you paid $100 each month for 11 months ($1100 total) but your actual usage came out to $1250, you’d owe the $150 difference in month 12. The catch-up covers any discrepancies between your payments and actual charges.

The catch-up amount appears on your bill as the “Equal Pay Payoff Balance”. This brings your running account balance to $0 so your Equal Pay year can start fresh.

When Will I Receive Credits or Refunds?

If your Equal Pay payments exceeded your actual electricity use for the year, you’ll have an account credit during your catch-up month.

Small credit balances under $150 will be rolled over to offset future bills. Larger credits will be refunded to you directly as a check. This refund typically comes 2-3 weeks after your catch-up month.

By refunding large surplus amounts, your account balance resets to $0 to start the new Equal Pay year. You don’t have to worry about credits lingering and complicating future payments.

Is Equal Pay a Good Option for Me?

If you like predictability in budgeting and avoid bill fluctuations, PGE’s Equal Pay program is worth considering. The fixed monthly amount makes it easy to plan spending. Just be aware of the catch-up adjustment each year.

We recommend Equal Pay if:

• You prefer consistent electric bills each month
• An annual catch-up bill won’t surprise or burden you
• Your usage is relatively stable year-to-year

However, Equal Pay may not be the best fit if your electricity use varies wildly month-to-month. Since PGE bases your amount on past use, major life changes like adding family members or working from home can throw off Equal Pay’s estimates.

Be sure to contact PGE if your usage changes so they can adjust your monthly amount accordingly. Staying on top of account adjustments ensures Equal Pay works in your favor.

Enrolling in PGE’s Equal Pay Program

Signing up for Equal Pay is simple. Just contact PGE by phone or through your online account dashboard. The enrollment process only takes a few minutes.

You’ll need at least 12 months of usage history at your home for PGE to calculate an Equal Pay amount. If you’re a new customer without enough usage data, PGE can put you on Balanced Payment which works similarly to Equal Pay.

Once enrolled, your Equal Pay program starts the following month. You’ll receive a new monthly bill showing your set Equal Pay amount rather than your actual usage charges.

Get Predictable Electric Bills with Equal Pay

PGE designed Equal Pay to provide consistency in monthly electricity bills. By understanding how your monthly amounts are set and the purpose of the annual catch-up, you can decide if this payment program is right for your household budget. While not a fit for everyone, Equal Pay offers simplicity and predictability that many PGE customers appreciate.