(WBIR-Knoxville) More than 30,000 KUB customers who used the balanced pay plan last month to determine how much to pay the utility, will no longer know how much they're paying, down to the penny.
"We recognized that we wanted to give our customers a good budgeting tool and our previous plan was not the best budgeting tool," said KUB's Christy Altom.
This month, the balanced pay plan was phased out for the new levelized billing plan. Both plans are similar in nature, but billing formulas are different.
"What our customers got were large swings in their payment amount due, and this is going to take that away and give our customers a more level payment plan year round," Altom added.
In the former plan, customers would pay the same amount for six months, based on the average of the previous six months prior. In the levelized billing plan, a customer's bill would be based on the average of 12 months prior. For example, May 2014's bill would be based from May 2013 to April 2014's average. In turn, June 2014's bill would be equated from June 2013 to May 2014's average.
Altom said the previous plans have jarring payment amounts between one six-month period versus another, thanks to winter and summer's higher usage.
"It keeps them from getting a large over-payment or underpayment because that amount was not set a good rolling average over the year," she said.
In order to qualify for the new system, the customer must be a residential customer who has lived in that address for one calendar year.
For more information, visit KUB's website.