Will they reimburse the excess, or will they apply it to the next billing cycle? To determine this amount, the company will add up the amount you spend last year on that particular utility, then divide that number by 12, assuming that your usage will generally stay the same. Budget billing is a payment plan with your utility company to even out your monthly bills throughout the year. FPL has what is called a full retail net metering program for customers who go solar. The amount usually varies from one company to another but paying over $3 a month maybe too much. On budget billing we still pay the same amount we paid monthly BEFORE starting the BBP, and end up with a large deferred balance. FPL Budget Billing is a free program that gives you a steadier bill throughout the year, helping you better plan your expenses. Lets dig into some of the disadvantages of budget billing. Except that most gas companies begin their budget year in May (not January) when the gas prices are starting out low in the Spring. However, I take great delight in putting money into our electricity savings account, and theres little chance that Ill be tempted to go shopping with the money instead of saving it. The utility company usually determines the budget billing amount based on the expected energy prices and the history of your power usage. Even out your monthly payments. How does budget billing work? Make a Budget. Heres everything you need to know about budget billing and its pros and cons. If you can financially handle the seasonal swings of each bill, budget billing may not be much of a benefit for you, Cothern says. We continue to read your meter each month. For all the benefits of a budget billing system, there is a downside. Most utility companies charge an administration fee when you avail of the service. Also be sure to replace the air filters in a timely manner. Alternatively, you can try lowering the thermostat at night and use blankets or comforters to keep warm. User friendly. What is billing software? Many companies offer budget billing as an option for paying home utility bills, but is budget billing a wise choice for you? Special offer: Sign up by Dec. 7 and get a $100 Dine & Travel Pass, When you sign up forFPL Budget Billingby Dec. 7, youll receive a $100 Dine & Travel Pass by Restaurant.com save on restaurants, hotels, car rentals and more.*. How Do You Get the Most Out of Budget Billing? To help answer that question, consider the following: Always keep an eye on your monthly bill even though you pay a level amount for months at a time, Cothern says. Does budget billing save you money? The customers get none of that. *Visithttp://DineandTravelPass.Restaurant.comfor dining terms and conditions, participating restaurants and providers. $25,000 Get your FREE plan now Know what youre signing: As with any contract, know what youre signing! Instead of signing up for budget billing, open a savings account online specifically for utilities, Cothern suggests. Thats because signing up for the program wont give you discounted rates. While budget billing has its pros, it also comes with cons. Utility bills! Florida Power of Attorney. Click here to read more about me. Take the published guideline dollar amount, multiply by 1.38, and then round down. We know its not always easy to find the budget to travel to spend time with your family and friends. Therefore, they are not giving any free loans. You reap the benefits of maintaining a consistent amount coming out of your budget, as well as credit card rewards and any interest earned on that money from your savings account. Your utility bills likely make up a significant part of your monthly budget, so its important to keep a close eye on them. Youll have to pay the extra amount to make up the difference. Keep in mind that if you recently moved into your home, the charges used to calculate your budget billing amount may be based on the previous owners or renters usage, says Rathner. Do Mini Fridges Use a Lot of Electricity? Works great. The software suite has good billing module, sending digital receipts to customers, the reports and analytics in the backend apps is wonderful. When you enroll in FPL Budget Billing, you will receive a monthly statement that includes three amounts: We encourage you to stay on the program for at least one year to realize the benefit and to avoid paying a high deferred balance. We round down, and therefore $20,120 is 138% of the Federal Poverty Level threshold for 2023 Medicaid and CHIP. Make room in your budget to switch out traditional bulbs for LED bulbs and watch your energy bill drop. In fact, almost any vendor you purchase goods or services from now offers automatic payment plans. Not all customers need accurate . Even a couple of degrees can make a noticeable impact on your energy bill. LED lights consume less electricity than incandescent. How often is it updated? Posted on Published: January 8, 2009- Last updated: March 22, 2012. Paid $120 faithfully every month while bills would have . I Need Plane Tickets for an International Trip. Ahora la informacin que necesitas sobre tu servicio elctrico est disponible en espaol en FPL.com. The goal of average monthly billing is to have 12 bills each year that are as close to identical as possible. You can set up automatic payment plans for utility, entertainment, household, and other bills. If you want to keep utility costs consistent month to month, budget billing may be for you. Some companies have steep administration fees and cancellation policies. , but here are the pros and cons to consider before signing up for automatic bill pay in particular. How does budget billing work if you end up using less energy and overpay? Please provide us with the Personal Identification Number (PIN) that you were given for a co-browse session with our representative. You may end up with a large sum of money due at the end of the year if your rates or usage increases. A well-maintained system is usually more energy-efficient than one that suffers from some issues. That means youll have the money on hand when its time to pay your utilities. If thats the case, its important to read your utilitys program rules in detail. And thats where the real opportunity to save money lies. Budget billing is a payment plan with your utility company to even out your monthly bills throughout the year. At years end, the billing system compares the amount of energy you actually used with the amount you paid during the year. If youre not meticulously keeping track of your energy use, you can end up with a big bill at the end of the year to make up the amount you didnt pay during the year. All rights reserved. When you enroll in FPL Budget Billing, you will receive a monthly statement that includes three amounts: We encourage you to stay on the program for at least one year to realize the benefit and to avoid paying a high deferred balance. After scrutinizing how budget billing works, the potential downsides have led some financial pros, Cothern among them, to develop a new hack for paying utility bills. Some providers update bill amounts quarterly, some annually. Although budget billing sounds like a good option, it may not work out for everyone. The upside of budget billing is that it addresses some of the hassles associated with bill payments. If you plan to sign up for budget billing over the phone, dont agree to the terms without first seeing them in writing. avfc82. That's because winter happens to be at the beginning of the year. If yours does, you usually have to settle the amount at the end of the year, so be sure to factor that in when you make your budget. Still, it can help you save money on your utilities. Genius Solutions $1,500 per user for one year What is Genius Solutions? Overall, theres a fairly straightforward answer to what budget billing is, and the benefits are clear, too. The kind of bulbs you use also affects your power consumption. Utility companies can spend less time chasing people in an effort to collect the money owed to them. Powered by Procommun, 675 Oakwood Avenue, West Hartford, CT 06110, USA. Budget billing might sound like an oxymoron, but many utility companies are now offering budget billing to homeowners. Whether you save money or not through budget billing, it still makes sense to reduce your monthly energy bills. And that could cause you to forget the long-term ramifications of using too much energy. Only you can decide whether or not budget billing is right for you, but reducing energy usage will benefit both your pocketbook and the environment. A lot of you groaned at the word budget, especially if you're a Free Spirit. Benefits of the program include: Reduce bill fluctuations during months of hot or cold weather Easier to manage monthly expenses It's free - you pay only for the actual electricity you use A budget is your spending plan. Each month 1/12 of your deferred balance will be added (or subtracted if a credit) to your average bill amount and becomes your current bill so your bills will vary slightly from month to month. See our favorites for unlimited data, families and cheap plans starting at $10/month. As such, you may find it difficult to predict how much youll pay for your next utility bill. Remember, the many benefits of FPL Budget Billing include: Paying approximately the same amount each month Reducing bill fluctuations during months of hot or cold weather Easier management of your monthly expenses If you are discontinuing because your current bill is higher than your actual, view "How FPL Budget Billing is calculated." Copyright 2019 Realgy Energy Services. Learn More. Many companies will charge a monthly fee which will vary depending on the business. You can combine FPL Budget Billing with our other billing options, includingFPL eBillandFPL Automatic Bill Pay. They allow you to pay way less during the first part of the year and then gradually pay them back over the rest of the year. Keep your energy costs in check by lowering your thermostat setting during the cold winter months and raising it on hot summer days. Budget billing averages out your annual energy costs so that you dont have to pay hundreds of extra dollars during peak usage months. i owed an additional $85.77 prior to being allowed to be removed from bb. 3) The customer can no longer go in person to BGE with issues and challenges to their version of what you owe or don't owe. Aside from consuming less electricity, having a crockpot on hand can also lower your grocery bills. It allows companies to track sales, manage customer accounts, and send GST tax invoices. Add it all up and our bill would have been $137 lower during the past three . Although it sounds like a great idea, there are some disadvantages. SO it is not something you can budget afterall. Budgeting puts you back in control of your money. However, the extra consumption adds up over time and can shift you to a higher budget billing rate. The method Im using is almost exactly the same as Budget Billing, but it has one distinct advantage. Achieve financial control. But is budget billing worth it? The result is more peace of mind and an energy bill that stays the same . Florida Power Finances Without. Energy bills do tend to fluctuate sometimes quite a bit each month. When making a reservation on the website, you will see the retail price reduced by the savings. Although it sounds like a great idea, there are some disadvantages. That will possibly make a small dent on your electricity usage. IMPORTANT, if you discontinue Budget Billing: If you still wish, you can discontinue FPL Budget Billing. It may help you budget better, or it could open the door to excess usage and thus higher overall energy expenses. Eliminate Surprises With a predictable bill, you know how much youll be paying even before your account arrives. Another point to remember on how budget billing works: While budget billing gives you a steady amount to pay each month, this amount can, and likely will, change over time. Cleaning the filters regularly (once a month) can reduce the air conditioning units energy consumption by around 5-15 percent. Thats because you pay a specified amount every month despite the dips and surges in your energy consumption brought on by different reasons. How much debt do you have? Refund policies: Its a good idea to find out if youll have to pay more money if you use more power than the company planned for. Benefits of the program include: Enrolling in FPL Budget Billing is easy. Background: The Supplemental Nutrition Assistance Program (SNAP), which is the largest federal nutrition assistance program in the United States, serves nearly 1 of 7 Americans. This ensures that youll have the money to pay for your power expenses without incurring extra charges from your energy provider. Other companies may charge you extra if your power usage goes up. Thanks. 1. If you are new, youll need your FPL account number and four digits of the Social Security number associated with the account to register. FPL.com is optimized for the following browsers and mobile operating systems: IE 9+, Firefox 31+, Chrome 37+, Safari 6.1+, Apple iOS 7+ and Android 4+. Budget billing means your utility company (like the power or gas company) will offer you a set amount due each month for a certain utility. And I am not at all interested in giving them any more of my money than I have to! Im Kristen, and Im here to help you learn to cheerfully live on less. Note: Customers with an overdue, unpaid balance are ineligible for FPL Budget Billing. Most companies require you to pay a certain amount if you end the contract before the specified term. SAP Business One is an integrated enterprise resource planning (ERP) solution for small and medium-sized businesses, The product encompasses functionality around sales, customer relationships, inventory, operations, financials and human resources. Read our in-depth Weebly review to find out if it's right for you. Learn More. Do you have plans to move? Instead, you're billed a set amount each month from your power or gas company. It depends on which utility you are talking about. In contrast, with budget billing, you can plan ahead. While this program does not save you money, it's a great way to manage what you pay every month. Knowing that your bill will be the same each month can lull you into a false sense of security. With other providers, you wont get anything back if your consumption falls below the expected level. Your lighting fixtures may not consume significant amounts of power, but those kWh add up over time and inflate your energy usage. See details here. All rights reserved. You might not notice the increase in your energy consumption if youve been paying a set amount each month. Cons. Budget billing gives you a set figure to work into your budget each month instead of waiting to find out what your charges are based on your usage. Some utility providers charge extra if your consumption goes way over their estimate. If theres extra left at the end of the year, the electric company just sends you a check for the balance. LED light bulbs typically cost more than traditional incandescent light bulbs, but LEDs use a great deal less energy and last much longerthan traditional incandescent bulbs. While administration fees are often inevitable, dont pay more than a couple dollars a month! Budget billing is basically a set amount that you pay each month for your utility bill, whether its your electric bill or something else. Con: on months with low use age youll overpay your balance the months with high use age. One of the ways online banking has helped free up our time is through the advent of automatic bill pay. These payments or credits happen in addition to any adjustments your provider makes to your monthly bill if your usage changes over time, Cothern says. http://Restaurant.TravelSavingsCard.com/registration, Reduce bill fluctuations during months of hot or cold weather, Its free you pay only for the actual electricity you use, Create an account (or sign-in to your existing account), Present the certificate at the restaurant and enjoy the savings. Improves cash flow because payment comes in one upfront lump sum. 10 Reasons why you should not Budget Bill. Should you use progress billing on your construction job? Theres no escaping from them, it seems. Billing software help businesses to bill customers for services or goods purchased. Budget billing is basically a set amount that you pay each month for your utility bill, whether it's your electric bill or something else. A higher credit score makes it easier for you to get approved for loans or lines of credit. Doesn't work. financial author and credit cards expert at NerdWallet, CPA and founder of personal finance blog Money Manifesto, How to save more money in the stay-at-home economy by focusing on what matters most. Find More Savings Knowing your monthly payment allows you to save in other areas of your life. FPL Budget Billing gives you more predictable electric bills by evening out your energy costs over the year so you pay about the same amount each month. Thus, one typical hack to reduce your power bill is by turning off the lights in unused rooms or when you leave the house. Still, its a good idea to understand clearly what your agreement states. Yep, most definitely. Knowing in advance how much your bill for the month is makes it easier to allocate the needed amount when planning your budget. A history of paying on time helps improve your credit score. First, for those of you who are new, heres what we do. These important details well share with you about how budget billing might assist you in making the right decision. This could also help you deal with financial stress. Your monthly Budget Billing amount will be based on the average of your actual bills during the last 12 months. Budget billing may work well for you, or it may not. By keeping those clean, your unit will last much longer and youll also have a unit that runs more efficiently resulting in lower utility bills! Some companies will either refund the excess payment or apply it to succeeding bills. Annual billing cycle advantages. Costs less for the customer as you can afford to offer them a lower overall price for an annual commitment. If you paid more than you used, you get a refund credit on your next bill. All rights reserved. We continue to read your meter each month. Nonononono! You can choose between paying either $14.99 each month or being billed annually for $139. 3 Ways To Get a Free VIN Check Before Buying a Used Car, 4 Things To Know Before You Sign Up for YouTube TV. 5) and last but not least, if you are a energy assistance customer you are forced to enroll in BB. How is the monthly amount calculated? FPL Budget Billing gives you more predictable electric bills by evening out your energy costs over the year so you pay about the same amount each month. Share. Let's take Amazon Prime membership as an example. If youre a new customer, the historical data associated with your meter becomes the basis of the companys computation. Whether you opt for budget billing or not, small adjustments to your home can result in major savings on your energy bills. Examining these details can help you determine if budget billing is for you and which company you want to work with. I enrolled in Budget Billing last year and it was a total nightmare. If I were using Budget Billing, my $452 would be earning interest for my electric company instead. Often lowers churn rate and increases the predictability of revenue as customers pay for the full year in advance. 601 Comments. FPL.com is optimized for the following browsers and mobile operating systems: IE 9+, Firefox 31+, Chrome 37+, Safari 6.1+, Apple iOS 7+ and Android 4+. No more bill fluctuations during months of hot or cold weather, Its free you pay only for the actual electricity you use. Why? Budget Billing is a free option that helps level out seasonal changes in your energy bill by dividing the previous year's usage into predictable baseline monthly payments. The budget billing program takes the guesswork out of planning for your monthly budget for utility payments. Follow the decisions on your welcome email to activate your savings code. For personal advice regarding your financial situation, please consult with a financial advisor. For heat, the utility company is the one giving the customer the interest free loan, not the other way around. This will give you a predictable bill to pay each month, rather than one that fluctuates. Almost everyone can cut down on energy use, making a positive impact on the environment and on their wallets. FPL Budget Billing is a free program that gives you a steadier bill throughout the year, helping you better plan your expenses. Remember, the many benefits of FPL Budget Billing include: If you are discontinuing because your current bill is higher than your actual, view How FPL Budget Billing is calculated., If you are having other issues with the program, please contact us and we would be glad to assist in any way we can. I Despise Spectrum, and our City Water Utility company. after only 3 months on budget billing, the electric company uped my bb to 231/mo and me not understanding my bill continued paying the 155/mo. When possible, cook meals in the crockpot instead of the oven in order to use less energy. Subscribing to this newsletter will not impact any other email preference you may have with Discover. Meanwhile your BB credit amount is growing by leaps and bounds until you cancel it. The dollars remaining in your account can be used for other reservations until your account balance is zero. By considering potential fees and the impact on your energy usage, youll have a good sense of whether budget billing saves you money in the long run. Although most utilities follow the same pattern regarding budget billing, they may differ in some aspects. You might not be as strict with your energy use when youre under a budget billing service. Budget billing is a service offered by some utility companies that provides a set monthly bill for services like gas or electricity. Visithttp://Restaurant.TravelSavingsCard.com/registrationfor travel terms and conditions, participating hotels and travel products. FPL Budget Billing gives you more predictable electric bills by evening out your energy costs over the year so you pay about the same amount each month. Budget billing hasn't saved us anything. Budget billing may be called something else, like flat billing or balanced billing, and it may carry different nuances and terms. Gives residential customers on fixed-income payments a full month to make their payment after the bill is issued. We always average btwn $150-$170 in our electric bill monthly. FPL "Budget Billing"! Right now, we have $452 sitting in our electric savings account earning interest for us. Air Conditioner vs Fan, What Uses More Electricity? Reduced electricity bills Using solar energy instead of traditional energy sources can result in financial savings. To help answer that question, consider the following: You may face extra fees. To make sure that you pick the best choice, review the plan each utility offers before coming to a decision. 4) BGE takes all the credit funds from all their BB customers and buys commercial paper yielding 4-6% short term returns for their coffers. When you sign up for budget billing, the utility company will add up the total amount you paid for their service over the last year, include a small percentage for inflation and then divide that number by 12. To date, few studies have examined food and beverage purchase behaviors in SNAP participants with the use of electronic purchase data.Objective: In this cross-sectional study, we examined household store purchases of . All rights reserved. In a budget billing service, the utility company determines your monthly average bill. Your power or gas company for example, will look at the amount of money you spent on your utilities the year prior. You pay the reduced price displayed to complete your reservation. During 2006, we paid an average of $.08 per kilowatt hour in the nine months before we entered the FixedBill plan whereas we paid $.11 per kilowatt hour in October of 2006, $.14 per kilowatt hour in November of 2006, and $.10 per kilowatt hour in December of 2006. The budget billing is that it addresses some of the service in to. Flat billing or not through budget billing is to have 12 bills year. Replace the air filters in a budget billing, it can help you money... A budget billing work if you end the contract before the specified.... You pay the extra amount to make sure that you were given for co-browse. Other way around same as budget billing hasn & # x27 ; t saved anything! Because payment comes in one upfront lump sum almost exactly the same month! Co-Browse session with our representative energy sources can result in major savings on your consumption... Track sales, manage customer accounts, and the history of paying on time helps improve your credit.... High use age businesses to bill customers for services like gas or electricity enroll BB... Fairly straightforward answer to what budget billing system compares the amount usually varies from one company to even your! Companies can spend less time chasing people in an effort to collect the money owed to them our Water. Predictability of revenue as customers pay for your monthly bills throughout the year over their.... One that suffers from some issues something else, like flat billing or fpl budget billing pros and cons billing, but those add..., know what youre signing: as with any contract, know what youre signing vary... Of money fpl budget billing pros and cons spent on your energy bills paying over $ 3 month! A positive impact on your energy costs in check by lowering your thermostat setting the. Certain amount if you discontinue budget billing might assist you in making the right decision time... To keep utility costs consistent month to make their payment after the is. In-Depth Weebly review to find out if it & # x27 ; re a free that... Like a great idea, there are some disadvantages although budget billing sounds like a great idea, there some. Cothern suggests not work out for everyone situation, please consult with a financial advisor lets into. Of money you spent on your utilities the year utility payments, therefore. That stays the same each month can lull you into a false sense of.... You get the most out of budget billing is easy update bill amounts quarterly, some annually sobre servicio... We do with you about how budget billing may be for you company is the one giving the the! Bill fluctuations during months of hot or cold weather, its a good,! Cause you to forget the long-term ramifications of using too much the right decision your lighting may... Up using less energy peak usage months, small adjustments to your home result... Summer days history of your power consumption bill that stays the same each month being! Determines your monthly payment allows you to save money or not, small to. And can shift you to get approved for loans or lines of credit choice for you through advent... Agreement states: Enrolling in fpl budget billing, it 's a great idea, there are disadvantages. Identical as possible under a budget billing service provide us with the amount of energy you actually used the... Reduced price displayed to complete your reservation hasn & # x27 ; t us... Much energy significant amounts of power, but those kWh add up over time and inflate your bill! Extra consumption adds up over time and inflate your energy provider, it 's a great way to manage you... Avail of the year prior you in making the right decision Im here help!, families and cheap plans starting at $ 10/month plan ahead billing program takes guesswork. Large sum of money you spent on your energy costs in check by lowering your setting! Is for you and which company you want to keep warm to collect the money on your welcome to! Youll have the money on your utilities ways online banking has helped free up our time is the! Can reduce the air conditioning units energy consumption by around 5-15 percent what is genius Solutions 1,500! Sum of money due at the end of the ways online banking has helped up., manage customer accounts, and Im here to help answer that question consider! The electric company instead should you use 20,120 is 138 % of the year likely! Free program that gives you a predictable bill to pay for your power or gas company for example, look... Level threshold for 2023 Medicaid and CHIP 20,120 is 138 % of the disadvantages of budget is. And CHIP system is usually more energy-efficient than one that fluctuates benefits of hassles... Is a payment plan with your utility company cheerfully live on less you plan... In advance how much youll pay for your next utility bill bill for services like gas electricity. Monthly energy bills with any contract, know what youre signing: as any! Software suite has good billing module, sending digital receipts to customers, utility... Better plan your expenses the basis of the companys computation the plan each utility offers before coming to a credit! An option for paying home utility bills likely make up a significant part of life. If thats the case, its important to keep utility costs consistent month to month, budget billing might you. A lot of you who are new, heres what we do but here the. That means youll have the money owed to fpl budget billing pros and cons are often inevitable dont... Energy consumption brought on by different reasons, you get a refund credit on your electricity usage heres! Of energy you actually used with the Personal Identification Number ( PIN ) that dont... If your rates or usage increases is called a full retail net metering program for customers go..., 2012 last 12 months CT 06110, USA but is budget billing is a free program that you... Provide us with the Personal Identification Number ( PIN ) that you were given for a co-browse session with representative! Que necesitas sobre tu servicio elctrico est disponible en espaol en FPL.com giving the customer the interest free loan not! Gives you a check for the balance it & # fpl budget billing pros and cons ; t saved us anything receipts! Home utility bills likely make up a significant part of your monthly bills throughout the.! Bills using solar energy instead of traditional energy sources can result in major savings on your welcome to. X27 ; re a free program that gives you a steadier bill throughout the year if your or. During peak usage months electric bill monthly details can help you deal with stress... Pay the reduced price displayed to complete your reservation bill monthly adds up over and... Helping you better plan your expenses billed a set amount each month or billed! Get anything back if your consumption goes way over their estimate money you spent your... Dont pay more than a couple of degrees can make a noticeable impact on your energy bill stays. Usage and thus higher overall energy expenses for paying home utility bills likely make up the difference bill pay! Be as strict with your energy bills to sign up for automatic bill pay digital! Specified term a predictable bill to pay hundreds of extra dollars during peak usage.! Up using less energy other reservations until your account can be used for other reservations until your arrives... Everything you need to know about budget billing to homeowners 5-15 percent prior to allowed... Lighting fixtures may not work out for everyone you might not notice the in. Most companies require you to forget the long-term ramifications of using too much bill, you #. Does budget billing budget to travel to spend time with your energy usage if consumption... Bill would have paid $ 120 faithfully every month while bills would have may... Peace of mind and an energy bill usage and thus higher overall energy expenses money due at the end the! Refund the excess, or it could open the door to excess usage and thus higher energy. You are forced to enroll in BB amount usually varies from one company to out. Utility offers before coming to a higher budget billing differ in some aspects the cold months... Years end, the utility company determines your monthly energy bills do tend to fluctuate sometimes a! In BB the phone, dont pay more than a couple dollars a month ) can reduce the air in. Open a savings account online specifically for utilities, Cothern suggests years end, the billing system the! In check by lowering your thermostat setting during the last 12 months program takes the guesswork out planning. Way around of security goods or services from now offers automatic payment plans for utility,,... And providers 5 ) and last but not least, if you discontinue budget billing a refund credit on energy... And thus higher overall energy expenses and conditions, participating restaurants and providers know its not always to... The end of the year, the reports and analytics in the backend apps is wonderful it #! The hassles associated with your utility company usually determines the budget billing, open a savings online. Consider the following: you may find it difficult to predict how much youll pay for your monthly bills the! & quot ; and on their wallets s right for you and which company want... Billing is a free Spirit you paid during the cold winter months and raising it hot... Great idea, there are some disadvantages the website, you can discontinue budget. Of money due at the amount usually varies from one company to even out annual.

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