I recently received a marketing pitch from Georgia Power, my electric company. They want me to sign up for FlatBill, a program that would allow me to pay the same flat rate for electricity every month. According to the letter:
"Your FlatBill offer includes a premium that protects you from unpredictable bills caused by summer's heat or winter's cold, changes in electricity rates or fuel prices, as well as changes in your electricity usage. Your customized FlatBill takes into account your past electricity usage, expected weather for the upcoming 12 months, and predicted changes in usage."
If they had sent me a letter offering me a way to save money on my electric bill, I would have been all for it. But in this case, they're trying to convince me to pay $136.51 more each month than I currently pay. How do I know it's $136.51 more? They told me so.
According to the letter, last year I paid an average of $431.82 per month for electricity. They think it would be great for me if I paid $568.33 per month so that I could have electricity insurance, for all intents and purposes. I know fuel prices have gone up, but somehow I don't think they've gone up so high that it should translate to an additional $136.51 per month. And I don't plan to start leaving every light in the house on 24 hours a day, so I don't foresee "changes in my electricity usage". For people on a fixed or low income, I can see how this might seem intriguing. But the premium rate only locks in for 12 months, so you don't get much savings over the long-term. And if you withdraw from the plan during the year, you may have to pay penalties.
I know I'm mathematically impaired, but doesn't this seem like a dumb idea? I think they should rename it Georgia Power FatBill.
Tag: marketing