Electric Bill Help

A consequence of falling behind on utility bills is damaging your credit score. For relief, check into government help, charity organizations and even utility company programs that will help you catch up.

Electric Bill Debt in the U.S.

Paying the power bill has become a major concern worry in America, and it’s not getting better. Roughly 1 in 6 households is behind on utility bills.

A survey by the National Energy Assistance Directors Association showed that the percentage of households unable to pay their energy bill for at least one month in the last year increased from 21.3% to 23.5%. It was even worse for families with children (33.1%) and households with incomes under $50,000 (38.3%) as pandemic-era support programs, including an enhanced child tax credit, went away.

The good news is there are assistance programs available. They won’t fix the problem, but they can keep the juice temporarily flowing.

Where to Get Help with Electric Bills

If you’re in danger of having your electricity cut off, don’t delay. Contact the utility company or agencies that offer help.

“We are mindful that energy affordability remains a challenge for U.S. families, particularly those who are the most vulnerable, and there continues to be a need for energy assistance in our service areas,” said James Gherardi, senior manager of corporate communications for Exelon Corp, the country’s largest public utility company.

Monthly electric bills are usually due within 30 days of receiving them. Once power is cut off, the utility company will charge reconnection fees and may ask for a deposit. Help paying utility bills can come from three sectors:

1. Government assistance
2. Utility company programs
3. Nonprofit and community resources

Government Assistance Programs

Two federal programs that are administered by state agencies can help with electric bills, and depending on where you live, there may be local programs as well.

Low Income Home Energy Assistance Program (LIHEAP)

This federal program helps low-income households that pay a high percentage of their income on home energy. LIHEAP received $3.6 billion from the Division of Energy Assistance for the 2024 fiscal year.

LIHEAP defines a low-income household as one that’s below 150% of the poverty threshold or 60% of the state’s median income. LIHEAP assists about 6.7 million families during peak hot and cold months.

How to Qualify for Energy Assistance

Eligibility for the LIHEAP program varies by state, but generally it starts at the $22,590 income level for a one-person household (150% of the federal poverty line which was $15,060 in 2024). The income level increases based on the number of people in the household.

You are automatically eligible if you meet one of these criteria:

• You’re a low-income family that meets the financial requirements. The government provides an online calculator to determine if you qualify.
• If you participate in other federal benefit programs, including SNAP (Supplemental Nutrition Assistance Program), SSI (Supplemental Security Income), TANF (Temporary Assistance for Needy Families).
• You meet certain needs-tested veteran benefits.

Individual states regulate LIHEAP and have varying application rules. A list of state and tribal LIHEAP offices is available here.

Discount Programs

Some utilities, such as Eversource in Massachusetts, Connecticut and New Hampshire, offer rate discount programs on top of what LIHEAP provides. To be eligible, customers must qualify by receiving assistance programs such as LIHEAP, Supplemental Security Income, and Supplemental Nutrition Assistance Program. Check with your electricity provider to see if you are eligible.

Weatherization Assistance Program (WAP)

The U.S. Department of Energy (DOE) Weatherization Assistance Program (WAP) reduces energy costs for low-income households by improving their homes’ energy efficiency. The program supports 8,500 jobs and provides weatherization services to about 35,000 homes every year using DOE funds.

Through weatherization improvements and upgrades, these households save on average $372 or more every year according to a national evaluation of the program. Since the program began in 1976, WAP has helped improve the lives of more than 7 million families through weatherization services.

WAP is administered at the state and local level. To apply for weatherization assistance, contact your state weatherization agency. The DOE website has a map that helps you connect with your state’s administrator. The administrator will need proof of income to determine if you’re eligible and, if so, will identify a weatherization provider in your area to do the work.

State and Local Programs

LIHEAP benefits vary widely depending on the state. In addition, some cities provide help.

The Lifeline Rate Program is a Los Angeles program that offers seniors and disabled residents a tax exemption on their electric and other utility bills.

In New York City, the Home Energy Assistance Program (HEAP) is a federally funded program that helps low-income homeowners and renters heat and cool their homes. Benefits for households that pay directly for heat based on actual usage are paid directly to the vendor that supplies the household’s primary heat source. Eligible participants you may receive help buying and installing an air conditioner or a fan to cool the home.

In Washington, D.C., the Utility Discount Programs provide discounts of up to $475 per year on electric bills, as well as discounts on gas, water and sewer bills.

Utility Company Programs

Utility companies take no joy in leaving customers in the dark. But, like any business, they need customers who pay their bills.

“Disconnection is the last resort when are unable to work with a customer to make payment arrangements,” said Scott Blake, director of media relations and policy communications for American Electric Power. “AEP’s top priority is to help all customers maintain their electric service.”

Utility companies work with people who are sincere about paying delinquent bills. They may spread the unpaid balance over several months or suggest ways to reduce your utility bill. Many energy providers have programs to help households when they can’t pay their bills on time, either with a payment plan or a temporary discount on your bill if you can pay some, but not all, of what you owe.

Payment Plans

Some utilities offer plans that divide your total yearly charges by 12. That way you pay the same every month and avoid big increases in winter months in the North or summer months in the South. The amount is based on the previous 12 months of energy consumption. This doesn’t change the total you will owe but makes it much easier to include utilities in your monthly budget. The monthly will be adjusted over time depending on your actual electric usage.

Some fees may apply, and if you’re not careful, you may be lulled into a false sense of how much energy you’re using during peak months. Those increases will eventually show up on future bills.

Energy Efficiency Programs

Many utility companies work with local governments to help consumers improve the energy efficiency of their homes or offices. These include:

Appliance recycling program to pick up and properly dispose of inefficient older freezers and refrigerators, either for free or by offering a small rebate on an upcoming utility bill.

Weatherization programs support weatherizing residences of low-income utility customers and small businesses. These can include free energy audits and a report of results and suggested improvements.

ENERGY STAR rebates are offered by some utilities to encourage the use of more energy-efficient appliances and heating/cooling equipment. A portion of the purchase price is rebated after you’ve bought the new equipment.

Ask your utility provider if it participates in such programs. Contact information is usually included on your monthly bill.

Nonprofit and Community Resources

Utilities and government aren’t the only sources for those struggling to pay their electric bills. Nonprofits and community organizations can help, too.

Charities and Nonprofits

The United Way’s 2-1-1 is servicing the financial help equivalent of dialing 9-1-1 for this type of emergency. A regional operator will direct you to a local organization that can help you with a variety of problems, including utility assistance, and this is available by telephone or online

In 2022, the 2-1-1 network answered more than 18 million calls and 2.4 million emails, texts and web chats. These are some of the organizations you might be referred to:

• Salvation Army
• Catholic Charities
• Love Inc.
• Lutheran Community Services
• St. Vincent de Paul Society
• Jewish Federation of North America
• Urban League

There are many more programs, especially at local churches, which assist in financial crisis situations.

Community Action Agencies

Community Action Agencies (CAAs) are private nonprofit and public organizations created out of the Economic Opportunity Act of 1964 to fight poverty. In partnership with community organizations, they deliver services to create economic opportunity and transform communities, and that includes utility bill-paying assistance.

The CAA website has a search function to help you find the CAA agencies in your area.

Simple Steps to Save On Electricity

There are easy ways to save money on your electric bill. Most are just common sense.

• Heating and air conditioning are the biggest reasons your bills soar. The recommended setting for air conditioning in the summer is 78 degrees. In winter, the recommended setting is 68 degrees.
• Water heaters eat up electricity. Stop using hot water to wash clothes and try to avoid it for other uses. Also, consider lowering the water heater thermostat from 140 degrees to 120 degrees.
• Pull curtains or blinds shut in the summer to keep your house cooler. Leave them open in the winter.
• Turn off lights and fans in rooms that aren’t occupied.
• Cover the dishes you put in the refrigerator. Food releases moisture, which makes the fridge’s condenser work harder to keep things cool. Invest in Tupperware or similar containers, or at least some plastic wrap and aluminum foil.
• See if your utility company offers free energy audits of homes or other money-saving programs.

“We’re empowering customers to take advantage of these programs, which enable customer savings through home energy audits, lighting discounts, appliance recycling, home improvement rebates, equipment upgrade incentives and innovative programs like smart thermostats and combined heat and power programs,” Gherardi said.

What If You Can’t Pay Your Bill?

If you’re in a financial pinch, it’s not a good idea to ignore your electric bill. You can face late payment fees, have your service disconnected and then pay extra to have it restarted.

So, if you know you can’t pay on time, immediately contact the utility company, let them know you are trying to pay and ask for help. You may get a short extension to avoid late fees, especially if you usually pay on time.

If you need more time, ask about a repayment plan, and the electric company may negotiate a monthly payment that works for you. If you’ve had a medical emergency or if turning off your power would be dangerous because of extreme heat or cold, you may ask for a temporary payment delay.

If money continues to be tight, it may be time to adjust your budget – or start one – so that you can prioritize paying for things you can’t do without. Such as electricity.

Exploring Additional Resources

LIHEAP and private charities aren’t the only potential sources of relief. Among the programs that offer help are:

• The Veterans Relief Fund provides assistance for those who’ve served in the military.
• The Lifeline Program, which is run by the FCC. It helps reduce cell phone bills.
• Rental Assistance can be found through various federal, state and private agencies.
• LIHEAP also offers funds to buy air conditioners, heaters and weatherize houses.

What Can You Do If Your Electricity Is Disconnected?

If you find yourself in the dark, there are a few options you can try.

• The Energy Crisis Intervention Program (ECIP) helps low-income households in crisis. Getting a 24-hour disconnection notice from your utility company qualifies as a crisis under ECIP guidelines.
• See if you qualify for relief under your state’s Low Income List Administrator.
• Contact your electricity provider to see if has emergency relief options or will work out a payment plan that will maintain service.
• Consider filing for bankruptcy. It’s a desperate move and probably not worth the long-term consequences, but utility companies are usually prohibited from cutting off service to customers who have filed bankruptcy petitions.

Speak to a Credit Counselor About Your Debt

If you can’t pay for utilities, you probably also struggle to pay your other bills and it would be wise to contact a nonprofit credit counseling agency to get relief.

A certified credit counselor can help ease your money anxieties. Nonprofit agencies can set up a budget and offer programs that could get you out of debt.

It’s a great feeling to have your financial house in order. Especially when that house has plenty of electricity.