AMES, Iowa – While inflation has hit many Americans in an already tight pocketbook, many households may also struggle to pay utility bills. With rising energy costs, it’s important for homeowners and renters to plan their budget each month to cover their various utility bills, says Carol Ehlers, a human sciences specialist with Iowa State University Extension and Outreach.
When prioritizing expenses, be sure to consider all household utilities (e.g., electricity, gas, water and sewer, landline and cell phone, and internet/cable). The highest utility cost is typically for heating the home, said Ehlers, who specializes in family wellbeing.
“You can plan for home heating costs to increase over the next six months, as many consumers may be surprised by prices that are higher than normal. Check with your energy utility provider to anticipate potential increases, which can give you a more predictable estimation for your monthly budget,” Ehlers said.
An average Iowa household utility expense is $2,580 but the actual cost varies widely according to the size of a home, climate and utility usage patterns. Regardless of what you pay for utilities, there are ways to pay less, Ehlers noted.
Step 1. Check eligibility and request energy assistance
The Low-Income Home Energy Assistance Program assists households with a portion of the home heating bills, particularly households facing disconnection or who have trouble paying their utility bill. Early applications for the program started Oct.1, with Nov. 1 through April 30 as the annual application period through a local community action agency.
The Iowa Health and Human Services website includes a general overview of LIHEAP, as well as a link to local community action agencies. Individuals may apply for the program at the community action agency in their county.
Step 2. Ask for a winter moratorium
Your utilities may not be shut off during the “winter moratorium” if you apply for and qualify for the Low-Income Home Energy Assistance Program.
- This program helps many low-income households pay their heating costs.
- If you are certified eligible for LIHEAP, utilities cannot shut off your gas or electric services from Nov. 1 through April 1.
- You should try to pay as much as you can on your utility bills, even during the winter moratorium.
“It is always best to keep making payments to the maximum extent possible during any period when your utility provider is prohibited from disconnecting your service,” Ehlers said. “Making payments during the winter moratorium creates ‘good will’ with the utility company, with whom you may be negotiating a payment plan, and keeps the problem from getting worse.
Step 3. Manage utility bills
- Know how much to expect: Ask your utility provider for how much the utility bill was last year for your home or apartment. Electric and natural gas average monthly costs in Iowa start at $215 and go higher depending on the size of your home and weather conditions. Pay as much as you can afford monthly.
- Weatherize: Leaky or old windows can account for 10% to 25% of heating costs due to warm air escaping. Replace windows with double-pane windows or install storm windows. Get help from the Iowa Weatherization Assistance Program.
- Lower the thermostat: Dialing down the thermostat saves energy in the winter. Set the thermostat to 68 degrees Fahrenheit while you’re awake and set it lower while you’re asleep or away from home.
“Even one degree lower can make a difference. Industry figures for every degree you turn down your thermostat, and leave it for eight hours, you save between 1% and 3% of your heating bill,” Ehlers said.
Free financial counseling is also available to all Iowa residents from ISU Extension and Outreach human sciences specialists in family wellbeing.
“We can help revise budgets, prioritize spending and link you to community resources,” Ehlers said. For more information, contact Iowa Concern at 800-447-1985 and ask for free financial counseling.
–Carol Ehlers, ISU Extension
