Setting up utilities and getting help with bills

Step 1 — Check your lease: which utilities do you pay?

“Utilities” usually means electricity, natural gas, water and sewer, and trash pickup. Phone and internet are separate: see our guide to getting a phone number and internet.

Your lease decides who pays for what. HUD’s sample lease, for example, says the tenant pays all utilities “except” the ones the landlord writes into a blank space, and HUD notes that misunderstood rules on utility bills are a common source of disputes (HUD — Housing Counselors Training). Before you sign, ask the landlord:

• which utilities are included in the rent, and which ones you must put in your own name;
• which companies serve the address;
• how the home is heated. Besides electricity and natural gas, some homes use propane, fuel oil or wood (LIHEAP Clearinghouse).

More in our guides to renting your first apartment and tenant rights.

Step 2 — Find out who provides each service

• Electricity. Your company may be owned by the city, by its members (a cooperative) or by private investors. In some states, you can buy electricity from another seller while the local utility still delivers it (EIA).
• Water. A public water system may be publicly or privately owned (EPA). Your water supplier must send you a yearly water quality report, called a Consumer Confidence Report, by July 1 (EPA — CCR).
• Trash and recycling. Local programs have different rules, so check what yours accepts (EPA — Recycling).

Find the real website. Top search results are often paid ads, and impostor sites may add fees even when they do pay your bill, so look past the ads for the company’s official site (FTC — Utility scams).

Step 3 — Open your accounts before you move in

Utilities bill you after you use the service, so the FTC says applying for them is applying for credit, and companies may ask for your Social Security number to check your credit history (FTC). No SSN yet? Ask what the company accepts instead, and see how to get a Social Security number.

What a company can ask for depends on your state. In New York, for example, you can apply by phone with your name, address, phone number and any past account details; in some cases, the utility can ask for a written application with proof of identity. Service usually starts within five business days (NY DPS).

Plan for two possible costs (HUD):

• a connection fee when the bill moves from the previous tenant’s name into yours;
• old debts: unpaid utility bills from a previous rental must be paid before companies will turn on service at your new home.

Tip: set the start date to your move-in day, keep each confirmation number, and photograph each meter on move-in day.

Step 4 — No U.S. credit? You may need a deposit

A new customer may have to pay a deposit or give a letter of guarantee, in which another person agrees to pay your bill if you don’t. The company’s policy must be the same for all customers (FTC).

State rules differ. New York’s regulator, for example, lists three cases when a home customer may owe a deposit: two or more unpaid bills in a row, a shutoff for nonpayment in the past six months, or a short-term or seasonal account. The deposit is capped at twice the average monthly bill and comes back with interest after a year without falling behind (NY DPS).

If you’re turned down. The company has to send you an “adverse action notice” within 30 days of its decision. You then have 60 days to ask in writing for the reasons (FTC).

Your payment record matters. Paying late can hurt your credit and lead to collections (FTC). See building credit from scratch for how utility bills affect credit reports.

Step 5 — If a bill is hard to pay, ask for help early

If you’re behind on your utility bills, or expect to be, contact the company right away (FTC). Ask about (FTC):

• a payment arrangement: you pay part of the overdue bill now and the rest over time. It often prevents a shutoff, but agree only if you can pay both your new bills and the old balance. Make-up payments still count as late, so ask how they’re reported;
• budget billing: a flat charge each month. If you use more than estimated, you pay extra at the end of the year.

Public programs can help too:

• LIHEAP (Low Income Home Energy Assistance Program) is a federally funded program of the Administration for Children and Families. It helps with home energy bills, energy crises, weatherization and minor energy-related repairs (ACF — LIHEAP). Eligibility is based on income, but each state and territory sets its own requirements, and you apply through its LIHEAP office, online or in person (USA.gov). Find your office with the LIHEAP search tool, available in several languages, or call 1-866-674-6327 on weekdays (ACF).
• The Weatherization Assistance Program (WAP) helps with home improvements that save money on energy (USA.gov). States and local providers run it, and eligibility depends mainly on income. Renters can apply too; the provider gets your landlord’s permission before any work. Eligible applicants go on a waiting list (DOE).
• 211. If you have trouble paying a utility bill, call 211 to talk to a specialist about local help (211). See who to call.

Questions about public benefits and your immigration status belong with a licensed attorney or a DOJ-accredited representative: see free immigration legal help.

Step 6 — Learn your state’s shutoff rules

Each state has its own policy on when utility companies can and can’t disconnect electricity or natural gas for nonpayment. It may depend on the weather, your age, a disability, or which company you have (USA.gov).

Three things to know (LIHEAP Clearinghouse):

• Most protections only pause shutoffs during certain dates or weather conditions. You are still billed, your past-due amount doesn’t shrink, and service can be cut later if you still owe money.
• The rules generally cover utilities regulated by your state’s public utility commission (PUC) or public service commission (PSC). City-owned utilities, rural electric cooperatives and fuel delivery companies usually aren’t, though they may choose to follow the rules.
• In a dispute, try to solve it with the utility first, then contact your state’s commission. The same page lists every state’s contacts.

For example, in New York, from November 1 to April 15, a utility must try to reach you or another adult at home at least three days before shutting off heat, and again on the day itself. If a doctor certifies a medical emergency, service must stay on for 30 days (NY DPS).

Step 7 — Lower your bills with simple habits

ENERGY STAR has low- and no-cost tips written for renters (ENERGY STAR):

• close shades in hot weather, and open them on cold days while the sun is out;
• keep air vents clear of furniture;
• wash clothes in cold water when you can, and run the dishwasher only when it’s full;
• plug electronics into a power strip and switch it off when you’re done;
• share the tips with your landlord for things you can’t change yourself.