PSEG Long Island Balanced Billing: how level-pay works on Zone K

Q: Does Balanced Billing save me money?

No. Balanced Billing flattens cash flow but does not change the annual total. It is a budgeting tool, not a discount. For real savings look at Time-of-Day Rate 180, the Household Assistance Rate or an ESCO alternative.

Q: What happens at the year-end reconciliation?

In your settle-up month PSEG LI compares paid against actual usage. A credit balance rolls into the next bill; a debit balance is added in one lump unless you call to spread it. A new 12-month forecast then begins.

Q: Will my instalment change mid-year?

Possibly. PSEG LI can re-estimate mid-year if usage or LIPA tariff rates drift far from the original forecast. Heatwaves, a new EV charger or steep rate changes can trigger mid-year adjustments.

Q: Can I leave Balanced Billing whenever I want?

Yes. Cancel through My Account or by calling 1-800-490-0025. PSEG LI squares up the account and you return to paying actual monthly usage.

Q: Does Balanced Billing work with the Time-of-Day rate?

Yes. Time-of-Day Rate 180 cuts the underlying cost by shifting load to off-peak hours; Balanced Billing then flattens the resulting lower total across 12 equal instalments.

Q: What about gas service on Long Island?

PSEG LI is electric only. Gas in Nassau, Suffolk and the Rockaways is delivered by National Grid. Gas emergency line: 1-800-892-2345 (National Grid), never PSEG LI.

By James Pochez | Updated 25 May 2026 | 7 min read

PSEG Long Island's Balanced Billing programme (sometimes called level-pay, budget billing or the budget plan) is LIPA's answer to the brutal July-to-September AC spike that hits every home in NYISO Zone K. The mechanic is simple: PSEG LI estimates the next 12 months of kWh from the previous year, multiplies by the current default supply and delivery rates, divides by 12 and that figure becomes your fixed monthly payment for the year. The kWh you actually consume still appears on the bill so you can track usage; only the amount due is flattened. Once a year (your "settle-up month"), PSEG LI reconciles: if you overpaid, the surplus credits your next bill; if you underpaid, the shortfall is added. This guide covers eligibility, the year-end reconciliation, when LIPA re-estimates mid-year and the three customer profiles for whom level-pay is the wrong call. Power outage? 1-800-490-0075 (24/7). Smell gas? 1-800-892-2345 (National Grid LI), NOT PSEG LI.

How Balanced Billing actually works

Four moving parts. The first three flatten the cash flow; the fourth (the reconciliation) is where most surprises hide.

Annual estimate

PSEG LI looks at the last 12 months of kWh on the account, applies the current supply and delivery rates, adds the basic service charge and forecasts a 12-month total.

Equal monthly instalment

The forecast is divided by 12. That fixed figure is what you owe every month, regardless of whether you used 400 kWh in October or 1,800 kWh in August.

Mid-year re-estimate (sometimes)

If actual usage drifts far from the forecast (heatwave, new EV, change in occupancy) PSEG LI can adjust your instalment mid-year to avoid a giant settle-up gap.

Year-end reconciliation

In your settle-up month, PSEG LI compares what you paid against what you used. Overpaid: credit. Underpaid: balance due on the next bill. Then a new 12-month forecast begins.

Source: PSEG Long Island Balanced Billing programme terms; LIPA tariff book, residential service class.

The four Balanced Billing lines on your statement

Once enrolled, the back of your PSEG LI bill carries a Balanced Billing Status block. Here is what each line actually means.

Usage to Date: Total kWh consumed since the start of your current Balanced Billing year. This is your real consumption, not the flattened payment.
Billed to Date: Total dollars you have been invoiced through the Balanced Billing instalment so far this year. Usage and Billed are deliberately decoupled.
Balance Due Company: Your real usage cost has overshot what you have been billed. If this number grows, expect a settle-up charge or a mid-year re-estimate.
Balance in Your Favor: You have been billed more than your usage justifies. The surplus will credit your next bill at reconciliation; it is not refunded as cash.

Who Balanced Billing helps and who it does not

Level-pay does not change your total annual bill by a single dollar. It changes when you pay each portion. Decide on cash-flow grounds, not savings grounds.

Good fit

·Fixed-income households (retirees, disability) where summer bills swamp the monthly budget.
·Families with central AC in Suffolk or Nassau where the July peak runs 2 to 3 times the April baseline.
·Anyone who has bounced a bill payment in the past 18 months and wants predictability.
·Pool-pump owners and heat-pump households with sharp seasonal swings.

Poor fit

·New-occupancy accounts (less than 12 months of usage history; the estimate has no data to work with).
·Households mid-installation of solar PV or a major efficiency retrofit (next year's usage will diverge sharply from last year's).
·Customers carrying an existing past-due balance (most utilities, PSEG LI included, refuse enrolment until the arrears are cleared).
·Anyone whose chief goal is to spot anomalies fast — level-pay flattens the price signal you would otherwise see.

Why Balanced Billing matters more on Long Island than upstate. NYISO Zone K is summer-peaking. AC drives the load curve to a sharp July-to-September spike, while the September-to-May months are relatively flat. The level-pay benefit on Long Island is therefore concentrated in summer; upstate, where heating drives a flatter winter-peak curve, the cash-flow smoothing is less dramatic.

Route 1

My Account on psegliny.com

Log in, open the Billing menu, select Balanced Billing and confirm. PSEG LI displays the proposed monthly instalment before you commit.

Route 2

Phone

Call 1-800-490-0025 or 631-755-6000, Monday to Friday 8 a.m. to 8 p.m. ET, and ask the representative to enrol your account.

Route 3

Customer Service Centre

Walk into any PSEG LI Customer Service Centre (Hicksville, Hewlett, Seaford and others) Monday to Friday during business hours; bring your account number.

Frequently asked questions

Does Balanced Billing save me money?

No, it does not change the total. Your annual bill is identical whether you pay 12 equal instalments or follow real consumption month-to-month. Balanced Billing is a cash-flow tool, not a discount programme. To actually cut the bill, look at Time-of-Day Rate 180, the Household Assistance Rate or an ESCO alternative.

What happens at the year-end reconciliation?

In your settle-up month, PSEG LI compares the total amount you paid against the total amount you would have owed at real consumption. A credit balance rolls into the next bill; a debit balance is added to the next bill in one lump unless you call to spread it. A new 12-month forecast then starts.

Will my instalment change mid-year?

Possibly. PSEG LI reserves the right to re-estimate mid-year if usage or LIPA tariff rates drift far from the original forecast. Practically, that means a heatwave summer, a new EV charger or a steep change in default supply rates can prompt a mid-year adjustment to avoid a punishing settle-up gap.

Can I leave Balanced Billing whenever I want?

Yes. You can cancel through My Account or by calling 1-800-490-0025. PSEG LI will square up the account (you pay any outstanding "Balance Due Company" line; you receive any "Balance in Your Favor" credit on the next bill) and you go back to paying actual monthly usage.

Does Balanced Billing work with the Time-of-Day rate?

Yes. The two stack. Time-of-Day Rate 180 cuts what you owe overall by shifting load to off-peak hours; Balanced Billing then flattens the resulting (lower) total across 12 equal instalments. The settle-up reconciliation still works the same way.

What about gas service on Long Island?

PSEG LI is electric only. Natural gas in Nassau, Suffolk and the Rockaways is delivered by National Grid, which runs its own separate level-pay programme on a separate bill. For gas emergencies on Long Island, call National Grid at 1-800-892-2345, never PSEG LI.