Final answer:
A budget pay plan averages yearly energy usage to offer a consistent monthly payment, smoothing out seasonal spikes in electric bills. So the correct answer is Option d.
Step-by-step explanation:
The best explanation of a budget pay plan for an electric bill is that it averages your usage over 12 months and gives you a standardized payment. This means, for someone like Luca who lives in a place with fluctuating temperatures and consequently varying energy needs, the electric bill would be the same each month. Rather than experiencing high bills in the cold and hot months when the furnace or air conditioning is running extensively, Luca would pay an equal amount monthly, which is calculated based on the average energy use throughout the year.