Why is a true-up required?
The budget billing formula computes your budget billing charges by averaging your electric and water charges for the most recent 12 months. Sometimes changes in weather, utility rates, or the way you use services may cause your actual costs to be either much greater or much less than your budget billing charges for several months. Some customers may accumulate a balance that is owed to the City, while others may have overpaid, and have a balance that the City owes them. Either way, accounts need to be settled or reconciled periodically so that the balances don’t accumulate to an unmanageable level. During the past year, increases in the cost of fuel used to generate electricity, and increases in our water rates have increased the cost of your utility service. While these increases have been gradually incorporated into your monthly budget billing charges, in many cases, budget billing has not kept pace with the cost increases. Why is this settle-up or reconciliation occurring now? The r
Related Questions
- The Annual Cash Settlement True-up Report Q6: What calculations are being done on this report and where do the numbers come from?
- Why don the Monthly Payment and Quarterly Reimbursement figures on the Annual Cash Settlement True-up Report agree with mine?
- What is the conventional definition of vertical drop? How is True-Up Vertical different?
