How to ask
- Call the number on the bill or the disconnection notice. Say you want a payment arrangement and cannot pay the full amount now.
- Tell them what you can pay today and what you can pay each month.
- Ask for the plan in writing, by email or mail, and read it.
- Mark the dates. A missed installment can end the plan.
Questions to ask
A checked example: Texas deferred payment plans
The Texas rule on bill payment and adjustments lists minimum terms for a retail provider's deferred payment plan. It is one state's rule, shown here to make clear what a plan can look like.
| Term | What the rule says |
|---|---|
| Who can ask | A residential customer with a bill due in July, August or September, or in January or February if the delivery company reported an extreme weather emergency in the prior month, and who is a critical care or chronic condition customer or has expressed an inability to pay. |
| Who is excluded | Customers who were disconnected in the past 12 months, submitted more than two insufficient-funds payments in that period, or are new customers without enough credit or payment history. |
| Initial payment | No greater than 50 percent of the amount due. |
| Installments | The deferred amount is paid in equal installments over at least five billing cycles, unless the customer agrees to fewer. The customer may choose a level or average payment plan instead. |
| Deposit | The provider may not seek an additional deposit because the customer entered this kind of plan. |
| Fees | A one-time penalty up to 5 percent on a delinquent bill is allowed, and the plan may include it, but it may not include a finance charge. |
| In writing | The plan must be confirmed in writing with its length, total amount, each installment, whether the balance shows on each bill and the disconnection terms. |
| Weather and disasters | A provider must also offer a plan on request for bills due during an extreme weather emergency. |
| If you default | The provider may pursue disconnection after notice. The 50 percent and five-cycle terms do not apply to a customer who has defaulted. |
| Switch hold | A provider may block you from changing providers until the deferred balance is paid, and must remove the hold once it is. |
Source: Texas rule text read on October 10, 2026. Rules change, and this is one state's rule used as a worked example. Your state's rules differ, so confirm with your utility and your state commission.
Payment plan or budget billing
A payment plan deals with a balance you already owe. Budget billing evens out your normal monthly charges across the year. They solve different problems, and you can ask about both. If you are behind, a payment plan comes first.
Pair a plan with other help
A plan lets you pay over time, and bill assistance can pay part of the balance. Apply for LIHEAP and local funds while your plan is in place. A pledge from an assistance agency can also pause a shutoff in some states. See emergency bill assistance.
If you cannot keep the plan
Call the company before you miss a payment, not after. Explain what changed and ask whether the plan can be reset with a smaller installment, a different due date or more time. A company that hears from you early has more room to help than one that hears from you after a default, and any new arrangement should be confirmed in writing again.
What to avoid
- Do not ignore a notice. Asking early costs nothing, and waiting narrows your choices.
- Be careful with high-interest loans or cards to pay a utility bill. A plan from the utility often costs less.
- Do not agree to a plan you cannot afford. A plan you cannot keep ends in default. Offer an amount you can pay every month.
Sources and further reading
Frequently asked questions
Can I get a payment plan for my electric bill?
Often, yes. Many utilities offer one on request, and some rules require it in certain conditions. Call before the shutoff date and ask for the terms in writing.
Is there a down payment?
It depends. In Texas, a qualifying plan can ask for an initial payment of up to 50 percent of the amount due. Other companies and states differ.
Will a payment plan stop a shutoff?
Usually, as long as you keep to it. Ask whether the plan holds the shutoff and what happens if you miss a payment.
Does a payment plan add interest?
It depends on your company and state. In Texas, a plan can include a one-time penalty up to 5 percent but not a finance charge.