There is an additional charge for the “service”, it isn’t simply the average monthly bill from the previous year; and
It reduces the power company’s costs because the meter is not read monthly.
Another scam is “whole house surge protection”, which is basically an 8-foot copper plated grounding stake that should already be in place with a heavier gauge of grounding strap, and a heavier version of the same surge circuit used in most power strips these days. For this “service” they get an installation fee and a monthly charge.
Everyone in the energy business is an Enron wannabe.
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