zhamid wrote:
munchito wrote:
Could you explain this a little more? I don't understand how they will get more money out of you on en EBP vs non EBP.
Without EBP, they will charge you what you owe them.
With EBP, they will generally charge you more (the "average" bill they come up with will be higher than what you would have paid in "most" months). That gives them extra money that belongs to *you*. Warren Buffett calls this "float". They will apply this money to your future bills, but until then they can invest it and keep the returns for themselves.
That's not true in all cases. For example, we moved in to our house in the month of Oct, and were paying $110/month (on EBP) when we were burning $200 worth of gas through the winter. It wasn't until the next September when we actually 'evened up' with Union. So in that respect, Union actually gave
me float money. We are on year 3 now with EBP and I find that knowing what I owe every month makes it easier for our budgeting, and that Union does a good job of estimating our consumption.
They actually just dropped the EBP amount lately over the nosedive NG prices have taken over the past few months.
