Help Paying Electric Bills: Programs That Can Reduce Your Costs

Electric bills can be one of the highest household expenses – and when the bill spikes in summer or winter, it can be impossible to keep up on a limited income. Several programs exist to help cover electric costs, and most people who qualify don’t know these resources are available.

LIHEAP: Federal Energy Assistance

The Low Income Home Energy Assistance Program (LIHEAP) is the main federal program for help with home energy costs, including electricity. It provides grants – money you don’t pay back – to help with electric bills and in some states, other energy-related costs.

Income limits are generally 150% of the federal poverty level, though states vary. Priority is given to households with elderly members, young children, or people with disabilities. LIHEAP funding is seasonal – most states open applications in fall for heating season and in spring or summer for cooling. Contact your local community action agency or your state’s energy office to apply. You can also call 211 to find local resources.

Utility Company Assistance Programs

Many electric utilities operate their own assistance programs for low-income customers:

• Low-income rate discounts – Reduced monthly rates for qualifying customers. Ask your utility company directly – these programs often aren’t advertised.
• Budget billing – Averages your annual cost into equal monthly payments, eliminating the spike when temperatures are extreme.
• Payment arrangements – If you’ve fallen behind, call before your service is shut off. Most utilities will set up a payment plan.
• Arrears forgiveness – Some utilities reduce past-due balances over time if you stay current on new bills. Ask if this program exists.
• Shutoff protections – Many states prohibit electric shutoffs during extreme heat or cold, and for households with elderly, disabled, or seriously ill members. Know your state’s rules.

Weatherization: Reduce Your Bill Permanently

The Weatherization Assistance Program (WAP) provides free home energy improvements that cut electric bills for good – insulation, air sealing, heating and cooling system upgrades. There’s no cost to eligible households (income generally up to 200% of the federal poverty level). Contact your local community action agency to apply.

SNAP and Automatic LIHEAP Eligibility

In many states, receiving SNAP automatically makes you eligible for the minimum LIHEAP benefit – called “categorical eligibility.” This is worth checking because the minimum LIHEAP benefit unlocks the Standard Utility Allowance deduction for SNAP, which can increase your food benefits. Contact your local LIHEAP office to ask about categorical eligibility in your state.

State and Local Programs

Many states supplement federal LIHEAP funding with their own energy assistance programs. Some utility service territories also have state-mandated low-income programs. Contact your state’s public utilities commission or department of social services to find out what’s available beyond LIHEAP in your area.

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Money Instructor does not provide legal or financial advice. This material has been prepared for educational and informational purposes only. Program rules and funding levels change. Verify current eligibility with your state energy office or local community action agency.