Lawrence is set to become a testing ground for a new way for consumers to pay their electric bills.

Residential customers in Lawrence are part of a small group of customers eligible to sign up for a new “pay-as-you-go” service being offered as a pilot project by Topeka-based Westar Energy.

The program is much like the pre-paid phone card some customers use, said Hal Jensen, Westar’s executive director of customer programs and service development. Instead of receiving a bill for electricity that was used in the last month, customers can make an advance payment at any time.

“We understand it won’t be for everybody, but we think it may fit the budget and lifestyle of some of our customers better,” Jensen said.

The company thinks it could be particularly popular with college students. That’s because the pre-payment system will eliminate the need for a customer to provide a security deposit before establishing new service. That deposit can be about $100 for a typical residential property. With the pre-paid system, Westar only requires a new customer to make a pre-payment of at least $35.

Customers on the pre-paid plan can receive e-mail and text alerts when their balance is a few days away from expiring. Customers also will have access to a website to track how much is in their account. If an account is depleted, pre-paid customers will have 72 hours to put more money in their account to maintain service, Jensen said.

The Kansas Corporation Commission approved the pre-paid pilot project on Thursday. Only residential customers who have digital SmartStar meters are eligible to join the voluntary program. But in Lawrence, virtually all residential customers have SmartStar meters after 45,000 were installed two years ago.

Westar has seen pre-paid programs work successfully with several utilities in other parts of the country, Jensen said. He said if the pilot project goes well, Westar will seek to expand it.

Jensen said Westar also is looking for opportunities to expand the digital meter project. Lawrence has the largest concentration of digital meters in the state, and Jensen said consumers are starting to see the benefits.

About 30 percent of Lawrence customers are taking advantage of a feature that allows customers to track their home’s daily or weekly energy usage online, Jensen said. He said some customers have been able to identify when an appliance has malfunctioned and is drawing an excessive amount of energy. Others have taken advantage of a feature that allows customers to get a text alert when their monthly electric bill reaches a certain dollar amount, allowing them to reduce their energy use.

Lawrence residents who want to sign up for the pre-paid service can learn more at westarenergy.com, or can call 800-383-1183 to sign up.