Budget billing, also known as an Equal Payment Plan, can be quite helpful for your pocketbook. But what is it? It breaks down like this; rather than paying a varying monthly bill to a utility company (gas, water, electric), they spread it out over the year. The utility company will find your average energy use pattern from the previous year and divide how much you paid by 12 months. Instead of paying a lot in the winter and a little in the summer, you pay the same amount every month. If their estimates are off, you will either accumulate a surplus or a deficit. Budget billing helps you plan your monthly expenses better, because now your utilities are a fixed cost with no surprise bill spikes.