Q: What is “Paygo Deferred Delivery”?
A: Paygo customers do not pay for their fuel after it is delivered. They pay for the fuel after they use it. When you get a delivery, it will show up as a line item in your month end statement and right below it will be a credit for the exact same amount. It effectively “zero’s out” the charge from your current monthly bill.
Q: What is “Net Fuel Usage”?
A: With Paygo, customers only pay for the gallons used each month, at the price it was delivered. The line item ‘Paygo- Net Fuel Usage’ shows your estimated usage for the month, including any usage adjustments, at the price at which that fuel was delivered. See more about usage adjustment below. ‘Net Fuel Usage’ is what you owe for the month.
Q: Can there be two “Net Fuel Usage” amounts on one statement?
A: Yes. This happens when you use up all the fuel from an earlier delivery and then switch to fuel from a more recent delivery. We split it out to show you how much you used from each delivery, at the price it was delivered. Ultimately, it all ties back to your delivery tickets.
Q: How do you know how much fuel I used?
A: Our computers track how much fuel your house uses depending on how cold it is. That is how we calculate when to make your fuel deliveries now.
Q: How does the usage adjustment work?
A: Every time we fill your tank, the Paygo system automatically compares what you actually used to what we estimated you used. An adjustment is made in your “Net Fuel Usage,” amount to bring your usage back to actual. It is similar to when the utility company finally reads your meter after some months of estimating. However, in the end, you can’t pay a cent more or less than the fuel you received, at the price it was delivered and you always have more time to pay.
Q. Is the usage adjustment the reason my monthly usage might be less, even though it was a colder month?
A: Yes. The adjustment is recorded in the month in which a delivery is made. So if we had previously overestimated your usage, a credit would be applied that lowered this month’s Net Fuel Usage amount for that fuel. Similarly, if we had previously underestimated your usage, the amount you owe for that month would be increased for that fuel.
Q: What does “Currently you have $xx.xx worth of fuel that has been purchased but not yet billed” mean?
A: This is the key benefit of Paygo. It shows you the value of the fuel you have received, but have not had to pay for yet. You are holding onto this money longer, thanks to Paygo. Every month in which you use fuel, or get a delivery, this amount will change.
Q: Am I responsible for paying for fuel “purchased but not yet billed,” even if I switch back from Paygo to regular billing or leave Townsend?
A: Yes. Once it has been delivered, you own that fuel, and you are responsible for paying us for it. We are allowing you to defer payment until after you use it. But if you switch back from Paygo to another program or leave Townsend, you must pay us this entire balance within 15 days.
Q: Do I receive a statement in the summer?
A: You get a statement anytime you owe money to us, or there has been a delivery. If you use fuel to heat your water, you will receive an estimated bill. Even though this is likely to be very small, you are responsible for paying it.