Based on the balanced billing, the Lange family owes the utility company <u>c. $550</u>.
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<h3>What is balanced billing?</h3>
Balanced billing occurs when a utility company bills a household for the difference between the utility company's charge and the allowed amount.
For instance, if the allowed amount is $3,216 and the utility company bills $3,766, there will be a difference of $550, which the household is expected to settle.
<h3>Data and Calculations:</h3>
Cost of electricity last two years = $3,216
Cost of electricity last year = $3,766
Difference in payment = $550 ($3,766 - $3,216)
Thus, based on the balanced billing, the Lange family owes the utility company <u>c. $550</u>.
Learn more about balanced billing payments at brainly.com/question/27222390
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<h3>Complete Question with Answer Options:</h3>
Two years ago the Lange family used $3,216 worth of electricity. Last year they switched to balanced billing.
During last year, they actually used $3,766 of electricity and their balanced billing payments were not enough to pay for their electrical usage. They had to pay the difference at the end of the year. How much did they owe the utility company?
Answer choices:
a. $3,766
b. $216
c. $550
d. $3,216