Utilities: Keeping the Lights On and the House Warm for Less

Think of a retired mail carrier who heats his house with gas. His January bill was almost twice his summer bill, and he started keeping the thermostat lower than he likes.

Utility bills come every month, and they rise and fall with the seasons. This guide explains how the bills are set, what can lower them, and what protections exist if a bill falls behind.

What this covers

Utilities are the services that keep a home running: electricity, natural gas or other heating fuel, water and sewer, trash pickup, phone, and internet. Some come from private companies owned by investors, some from a city or public authority, and some from member-owned cooperatives.

How the cost is set

Most bills combine two things: how much you use, and the price per unit. Use goes up with heating in winter, cooling in summer, and the number of people in the home.

For utilities owned by investors, a state utility commission (a state board that oversees utilities) approves the rates. In Nevada, for example, the fuel the utility buys is passed through to customers without markup. The rest of the rate is set in a public case, based on the utility's costs plus a fair profit. It must be just and reasonable¹. City-owned utilities and water authorities may set rates in other ways.

What you get in return

Steady heat, cooling, light, clean water, and a working phone are more than comforts. They keep a home safe to live in and let you call for help. Federal energy help exists partly to help households keep safe temperatures year round and to reduce the health and safety risks of unsafe heating and cooling².

Ways to lower it

Programs and rules vary by state and by utility. Start with our page Help with housing costs, state by state, and ask your utility what it offers.

• Energy bill help (LIHEAP). The Low Income Home Energy Assistance Program, or LIHEAP, is federal money that states use to help with heating and cooling bills, energy emergencies, weatherization (sealing drafts and adding insulation), and small energy repairs³. States may set income limits up to 150% of the federal poverty level, or 60% of the middle income in their state. They are told to put households with frail older adults first. In the 2024 budget year it reached about 5.9 million households, 17% of those who qualified⁴. Congress provided about $4 billion for the 2026 budget year⁵. Find your state's office on the LIHEAP contact list, or call the Energy Assistance Hotline at 1-866-674-6327.
• Weatherization Assistance Program. This Department of Energy program helps lower-income homes use less energy. Households save $372 or more a year on average⁶. You apply through your state.
• Discount rates. Many utilities offer lower rates for customers with lower incomes. California's CARE discount program, for example, takes 30% to 35% off electric bills at large utilities and 20% off gas. As of October 2026, the income limit for one or two people is $43,280⁷. Massachusetts starts income-based discount levels on November 1, 2026⁸.
• Budget billing. Your utility estimates a year of use and spreads it into 12 equal payments. It does not lower the total, but it evens out winter and summer peaks. In Massachusetts it is open to all customers, regardless of income⁸.
• Lifeline for phone or internet. This federal program takes up to $9.25 a month off phone or internet service. You may qualify with income at or below 135% of the federal poverty level, or if you get SNAP food benefits, Medicaid, Supplemental Security Income, public housing help, or the Veterans Pension⁹.
• Water bills. The federal water bill program, the Low Income Household Water Assistance Program (LIHWAP), has ended. For help now, call 211 or try your local Community Action Agency, a nonprofit that runs local help programs¹⁰. Ask your water utility, too.
• An energy check. Sealing air leaks and insulating can save up to 10% on annual energy bills¹¹. A professional energy check goes room by room and often tests for leaks. Ask for references before you hire one¹².

If a bill falls behind

• Payment plans and forgiveness. Utilities often offer payment plans. Some forgive part of a past-due bill each month you pay on time. In Massachusetts, for example, you need at least $300 that is 60 days past due⁸.
• Medical certificates. In many states, a note from a doctor or other health provider can delay a shutoff. The time varies, for example up to 90 days in Colorado¹³.
• Weather and age protections. Some states limit shutoffs in winter or extreme heat, and some protect older customers. North Carolina, for example, bans winter shutoffs for older customers. Arkansas bans them for certain protected customers when 95 degrees is forecast¹³. Ask your utility or state utility commission what applies to you.
• Crisis help. LIHEAP emergency help must reach a household within 48 hours, or 18 hours if the situation is life-threatening¹⁴.

What can change it

• Someone moving in. Another person means more showers, laundry, cooking, and devices, so use goes up. Decide ahead how to split each bill and write it down. See Sharing the Kitchen, the Fridge, and the Everyday and What Goes in a Home Sharing Agreement. Rent or a new household member can affect income-based programs, so read Will Sharing My Home Affect My Benefits?
• A heat pump. A heat pump can cut electricity use for heating by up to 75% compared with electric resistance heat, such as baseboard heaters¹⁵.
• Weatherization. Sealing and insulating lower what it takes to heat and cool the home, as above.

An extra set of hands

Another person in the home, or a helpful family member, friend, or neighbor, can help keep these bills lower.

• What it accomplishes. Changing the furnace filter, which generally needs doing every one to three months¹⁶. Adding weatherstripping to doors and putting film on drafty windows. Helping fill out a LIHEAP or discount rate application. A weatherstripping replacement job averages $265 to hire out, and a handyman charges $60 to $125 an hour plus materials, as of June 2026¹⁷.
• What it protects. Someone who notices a cold house, a space heater left on, or a bill that suddenly doubled can raise it before it becomes a crisis.
• What it preserves. The comfort of a warm home, and the money that would otherwise go to wasted heat.

This help is optional and agreed in advance. Skilled or risky work, such as roofs, trees, electrical, plumbing, gas, furnace repairs, and anything on a ladder above the first floor, belongs to licensed professionals. Being present is not caregiving. See Help Around the House Is Not Caregiving.

Watch for

• Utility impostor scams. A caller says your power will be shut off today unless you pay now. Real utilities do not insist on gift cards, wire transfers, or cryptocurrency. Hang up and call the number on your paper bill or the utility's website. Report scams to the Federal Trade Commission and to your utility¹⁸.
• Fake grants. LIHWAP never charged fees or gave grants to individuals. If someone offers a "LIHWAP grant" or asks for a fee, report it to the federal health department's fraud hotline at 1-800-447-8477¹⁰.
• Turning the heat too low. Saving money should not mean an unsafe house. Ask about help before it comes to that.

Conversation starters

If you are an adult child or friend talking with an older adult:

• "Your house felt cold last time I visited. How are the heating bills this winter?"
• "Want me to look into whether your utility has a discount rate?"
• "I have a free Saturday. Should we put new weatherstripping on the back door?"

If you are an older adult talking with family or caregivers:

• "My gas bill doubled this month. Would you help me figure out why?"
• "I'd like help with the energy assistance application. Can we do it together?"
• "If someone moves in, I want us to agree on the utilities from the start."

Steady heat, cooling, light, clean water, and a working phone are more than comforts.

Last reviewed October 14, 2026