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Average Billing

How Does It Work?

With regular billing, your energy bill goes up during high-usage months and down in low-usage months. Instead, Average Billing allows you to pay a rolling average monthly amount, spreading your energy costs throughout the year and making it more manageable.

How is the Average Billing amount calculated?

  1. We add up your monthly bills for 12 months (or for the number of monthly bills available, if fewer than 12).
  2. We then take that total and divide the amount by 12 or by the total months available for your service address (if fewer than 12).
  3. Finally, we add or subtract 1/12 of your deferred balance, which is the cumulative difference between your monthly Average Billing amount and your actual usage charges.


Average Billing is an easy way to manage your monthly energy budget.

Sign up for Average Billing and smooth out seasonal high and low bills by paying an average amount all year.

Illustration example of Average Billing chart

Frequently Asked Questions

The deferred balance is the accumulative difference between your determined Average Billing amount and what you would normally owe if you were not on our Average Billing program. You can find the deferred balance amount on your monthly bills. If the bill amount is negative, we will subtract 1/12 from your bill. If the bill amount is positive, we will add 1/12 to your bill.

If you're new to Average Billing, the deferred balance will begin on the second month. If you decide to cancel your Average Billing or change energy retailers, you will need to pay your deferred balance in full.

Your monthly bill will show the Average Billing amount that is due that month. In addition, you'll see your actual usage, the current price, and your deferred balance. As mentioned above, the deferred balance might be a credit or an amount owed.

With regular billing, your energy bill goes up during high-usage months and down in low-usage months. Instead, allows you to pay a rolling average monthly amount, spreading your energy costs throughout the year and making it more manageable. .

This is how we calculate your Average Billing amount:

  1. We add up your monthly bills for 12 months (or the number of monthly bills available, if fewer than 12).
  2. We then take that total and divide the amount by 12 or by the total months available for your service address (if fewer than 12).
  3. Finally, we add or subtract 1/12 of your deferred balance, which is the cumulative difference between your monthly Average Billing amount and your actual usage charges.

And don't worry, with Average Billing, you can still sign up for Auto Pay through your bank or make payments through your Online Account, mail, or phone. You can read more about

Please call us if you'd like to remove Average Billing from your account. Unfortunately, we cannot make those adjustments through your Online Account at this time. If you decide to cancel your Average Billing or change energy retailers, we will apply any credit balance to your next bill or refund it. However, if you have an outstanding deferred balance, you'll have to pay it at this time.

Average Billing would only start on your second month with us as we calculate your Average Billing amount based on the average of your Direct Energy bills.

You might be able to transfer your deferred balance over to your new address. We can discuss this when you let us know you're moving and request a service transfer.