by Carol Ehlers, Human Sciences Specialist, Family Wellbeing and Finance
While inflation has hit many Americans in an already tight pocketbook, many households may also struggle to pay utility bills. Whether you are a homeowner or renter stretched thin by rising energy costs, it is important to get a good handle on how much is budgeted each month to cover your various utility bills.
When prioritizing expenses, a major household bill is utilities (e.g., electricity, gas, water and sewer, landline and cell phone, and internet/cable).
The average Iowa household utility expense of $2,580 varies widely according to the size of a home, climate, and utility usage patterns.
The highest utility cost is typically heating the home. Plan for increasing home heating costs over the next six months. Check with your energy utility provider to anticipate potential increases which can give you as consumers a more predictable estimation for your monthly budget.
Regardless of what you pay for utilities, there are ways to pay less. Below are some resources that can help.
Check Eligibility and Request Energy Assistance
The Low-Income Home Energy Assistance Program (LIHEAP) assists households with a portion of the home heating bills, particularly those facing disconnection or who have trouble paying their utility bill. Early applications for LIHEAP started October 1, with November 1-April 30 as the annual application timeframe through a local community action agency.
A general overview of the LIHEAP program is available in multiple languages. Application help from a local Community Action Agency is found on the Iowa Department of Human Rights’ website at https://humanrights.iowa.gov/dcaa/where-apply.
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 (LIHEAP). 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 November 1 through April 1, but you should still 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. 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.
Manage Utility Bills
Know How Much to Expect. Ask your utility provider 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 your home. Leaky or old windows can account for 10 to 25 percent 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 at https://humanrights.iowa.gov/dcaa/weatherization.
Lower the Thermostat. Dial down the thermostat to save energy in the winter by setting the thermostat to 68°F while you are awake and setting it lower while you are 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 8 hours) you save between 1-3 percent of your heating bill.
Remember that free financial counseling is also available to all Iowa residents through ISU Extension and Outreach’s Human Sciences Specialists in Family Wellbeing and Finance. We can help revise budgets, prioritize spending, and link you to community resources. To schedule a free financial counseling session, contact Iowa Concern at 800-447-1985 and ask for free financial counseling.