Low Income Electric Programs: The Income Test and Discounts

1. LIHEAP bill and crisis help. A grant paid to your utility or fuel supplier. See LIHEAP explained.
2. A utility discount or income based plan. Some electric companies charge a lower rate or cap your payment at a share of income. This help lasts as long as you stay enrolled.
3. A payment plan. It spreads what you owe over months. See electric bill payment plans.
4. Weatherization. Free upgrades that cut use for good. See the Weatherization Assistance Program.
5. Local funds. Charities, faith groups and utility hardship funds, found through 2-1-1 and your community action agency.

You do not have to pick one. A household can get a LIHEAP grant, enroll in a discount and ask for weatherization in the same season.

The LIHEAP statute sets two ways to qualify. A household can qualify because someone in it receives certain benefits, and it can qualify on income.

• Benefits test. Someone in the household receives assistance under the state program funded by part A of title IV of the Social Security Act, supplemental security income, SNAP benefits, or certain veterans payments the law lists by section number.
• Income test. Household income does not exceed the greater of 150 percent of the poverty level for the state or 60 percent of the state median income.
• A floor. A state may not exclude a household solely on income if that income is under 110 percent of the poverty level.
• Priority. A state may give priority to households with the highest home energy costs or needs in relation to income.

Each state sets its own limit inside those rules, so the number you see on a state page can differ from the one below. The poverty guidelines give a starting point:

Source: HHS ASPE, 2026 poverty guidelines and 42 U.S.C. 8624, LIHEAP state plans and eligibility. Alaska and Hawaii use higher guidelines, and each state page shows its own.

California's CARE program gives qualifying households a discount on every electric bill. The Public Utilities Commission says electric companies with 100,000 or more customer accounts offer a 30 to 35 percent discount, and smaller ones offer 20 percent. For the period June 1, 2026 to May 31, 2027, the annual income limit is $43,280 for a household of one or two and $66,000 for a household of four. A household can also qualify by being on programs such as Medi-Cal, SNAP, LIHEAP, SSI or TANF, among others the commission lists.

An illustration, not a quote: the average California home paid $154.73 a month in 2025. A 30 percent discount on a bill that size would be about $46.42 a month, or $557 a year. Your discount depends on your utility's rate schedule and your use. You apply through your electric company.

Source: California Public Utilities Commission, CARE and FERA programs. The commission's page lists the current limits, so use it instead of the figures above after May 31, 2027.

Pennsylvania requires its electric utilities to run a Customer Assistance Program, known as a CAP. The Public Utility Commission describes two common designs. In a percentage of income plan, the customer pays a set share of income for service. In a rate discount, the customer pays a lower price per unit than other residential customers.

The details differ by company, including the income limit, the payment share and any forgiveness of past due balances, so ask your electric company for its CAP terms in writing. The commission's Bureau of Consumer Services can help at 1-800-692-7380.

Source: Pennsylvania Public Utility Commission, customer assistance program guidance. CAP terms are set company by company and revised over time.

• Do you have a discount rate, a percentage of income plan or a low income program? What is the income limit?
• Does a LIHEAP grant enroll me automatically, or do I apply separately?
• If I owe a past balance, can any of it be forgiven if I pay on time?
• Are there shutoff protections while my application is pending?
• Is there a hardship fund, and who runs it?

Write down the date, the name of the person you spoke to and what they said. If your state has a regulator, its consumer line takes complaints when a company will not explain its programs. Find your state's regulator on the regulators list.

Offices differ, so ask for the exact list. Most ask for some or all of these:

• A recent electric bill, or a shutoff notice if you have one.
• Proof of income for everyone in the household, usually for the last 30 days.
• Photo identification and proof of who lives in the home.
• Proof of benefits, such as an award letter for SSI or a SNAP card.
• The name on the account and the account number.

The average home paid $150.68 a month in 2025 at 17.23 cents per kWh. Bills vary a lot by state, which is why income limits and discounts matter more in some places. The five states with the highest average monthly bills were:

Source: EIA Form EIA-861, residential. Each state name links to its bill help page with the official LIHEAP office.

Source: Federal rules and program details were read on October 10, 2026 from the sources listed at the end of the page. Programs and funding change, so confirm each point with the office you call. Nothing here promises that a household qualifies.

• 42 U.S.C. 8624, LIHEAP state plans and eligibility
• HHS ASPE, 2026 poverty guidelines
• California Public Utilities Commission, CARE and FERA programs
• Pennsylvania Public Utility Commission
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