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5 Winter Utility Myths
Aimee English is the Community Service Liaison at the Citizens Utility Board in Chicago, IL.
As winter drags on, your utility bills might be getting you down as much as the temperatures. Stay informed about the law regarding utilities by knowing the truth behind these 5 winter utility myths:
Myth #1: I can’t get shut off in the winter
By law, residential gas and electric accounts are protected from disconnection for nonpayment when the temperature is below freezing. That means if the National Weather Service forecasts temperatures below 32 degrees within the next 24 hours, the utility should suspend disconnection operations. If there is a weekend or a holiday included, the time period is extended.
However, if the temperature is above 32 degrees, disconnection can happen, as long as the proper disconnection notice has been sent. Also, gas and electric utilities may disconnect a residence without warning, if there is no valid customer of record. This can also happen if there is gas or electricity theft taking place.
Winter disconnections are relatively unusual, but definitely not impossible!
Myth #2: I don’t qualify for any financial assistance
There are many financial assistance programs available. They all have slightly different eligibility rules. Most are based on monthly household income, not total assets . Sometimes, you may be asked to document an arrearage (overdue bills), a disability , or a crisis of some kind, but not always.
The federal Low Income Home Energy Assistance Program (LIHEAP) awards grants based on household size and income. It also has a priority period that is reserved for senior citizens and people with disabilities. If you do not meet those criteria, you may be told to come back at a later date. But you can also receive a grant that is larger than your bill and be left with a credit balance.
It is in your best interest to explore all your options. Apply for any program that you can, as early as you can, because funds can run out.
Here are some additional resources to look into:
Myth #3: Energy “prices” go up in the winter
Your utility bill is based on how much gas and electricity you use and the price the company charges you for it. Prices are determined by different factors. However, the government regulates portions of the process to keep things under control.
Your utility bill usually goes up in the winter because you are burning a lot of gas and/or electricity to keep warm. The colder it is, the more energy your home will need to maintain warmth.
Natural gas prices have been relatively low and stable for several years. Electricity prices are gradually trending down as well. Retail energy suppliers use the fear of expensive winter bills to sell “discount” and “protection” plans, but these plans almost always end up costing more than your regulated public utility in the long run.
Pay attention to the bar chart on your bill. It shows how much gas or electricity you use every month. Know when it goes up and down, and how it compares to your neighbors. The best way to guard against high winter bills is to use free and reduced-cost weatherization and energy efficiency programs. For more information, visit:
Myth #4: I can save money on my winter bills by using a portable electric space heater
In a typical Illinois home, the gas-forced air furnace is going to be a much more effective way to raise the temperature than a small plug-in device. Yes, a little heater near you feels nice and toasty, but consider this: a 1500-watt heater used 4 hours a day will add about $25 a month to your electric bill. To save $25 on your gas bill the same month, you would have to reduce consumption by around 60 therms, which is roughly a third of the typical household’s winter gas use. You would have to turn your thermostat down to an uncomfortable level to balance the added cost of the extra electric heater.
In fact, if gas is disconnected, and the only source of heat is plug-in heaters, it is not uncommon to see an electric bill over $500 for one month, when the gas bill for the same premise would have been more like $200.
Moreover, electric heaters are dangerous. While new models are definitely safer than older ones, they still pose a burning risk to children, seniors, pets, and furniture.
Myth #5: Budget billing and payment plans save me money
Gas and electric utilities in Illinois are required by law to offer a Budget Billing Plan and Deferred Payment Arrangements (DPA).
A DPA is for when you have a past due balance. The money you owe from the past is divided into installments and added to your new bill each month until you pay it off. You pay interest on the past due balance, and your total monthly payment is larger, not smaller. For example, you may owe $100 for your current month’s bill plus $50 towards the past due amount you deferred.
Getting on a DPA in winter may not be the best idea if you aren’t prepared to pay a full month’s bill PLUS something extra.
Budget Billing, on the other hand, is supposed to help you avoid getting behind in the first place. In expensive months, you get to pay less than what you owe. In cheaper months, you pay more than what you owe. So your out-of-pocket expenses are more predictable.
For example, if your bill is $150 some months, and $50 other months, you might pay $100 every month. However, these plans do not change the price per therm or kilowatt hour that you pay; they just give you extra time to pay what you owe.
This information is posted as a public service by Illinois Legal Aid Online and its partners. Its purpose is to inform people of their legal rights and obligations. Talk to a lawyer if you have questions about how this information applies to you.
Worried about doing this on your own? You may be able to get free legal help.
