Avoiding Gas and Electric Shutoff - Payment Plans and Other Remedies

Authored By: Iowa Legal Aid LSC Funded

Utility bills can strain the budgets of many Iowans. This is especially true for elderly and disabled Iowans on fixed incomes. If you cannot afford to pay your natural gas and electric utility bills, you have certain rights and remedies that may help you avoid having utilities shut off.

The Winter Moratorium

Your utilities may not be shut off during the "winter moratorium" if you 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. You should try to pay as much as you can on your utility bills, even during the winter moratorium. As of April 1, however, if a balance remains past due on a utility bill, the utility company can stop your service if the bill is not paid or a payment plan arranged. To find the nearest place to apply for LIHEAP, go to this website: or call your local Community Action Agency.

Regular Payment Plans

Most utilities are required to offer you a reasonable payment plan if you have not been able to pay your gas or electric bills. Whether a payment plan is "reasonable" depends on a number of factors, including your ability to pay. At a minimum, utilities must give you the option of spreading payments evenly over at least 12 months if you have not been disconnected, or have been disconnected for less than 120 days. If you have been disconnected for more than 120 days, then the utility must give you the option of spreading payments evenly over at least 6 months.

If you have been unable to keep up with your utility bills, you should contact your utility to negotiate a reasonable payment plan. You must be offered this type of payment plan unless you are behind on an existing payment plan. While you are on the plan, you also have to pay your current bill.

Second Payment Plans

A second payment plan must be offered to you by the utility if you made at least two payments in a row on time under the first payment plan before getting behind in payments. If this happened to you, you should contact your utility and request a second payment plan. This second payment plan must be for the same amount of time as the first plan, or longer. While you are on the plan, you also have to pay your current bill. The utility may require you to make the first payment up front before allowing you to make a second payment plan.

Health Hazards

Disconnection must be delayed if it would present a special danger to your health or to the health of anyone who lives with you. Contrary to what some believe, a health hazard is not limited to life-threatening situations. A health hazard can happen if a member of your household has a physical or mental impairment (including depression) or developmental delay (mental retardation, for example). Sometimes, just having very young or very old members of the household may be enough to delay disconnection. If the utility company is given a doctor's statement stating that a person living at the residence faces a special danger if they go without gas or electric service, the utility must delay disconnection for 30 days. If the gas or electric service is already shut off for 2 weeks (14 days) or less by the time the utility receives the doctor's statement, the utility must reconnect service immediately. Then they must delay disconnection 30 days. During the 30 day delay, a payment plan must be entered into and you must continue to pay your current bill, or else the utility may be allowed to disconnect you after 30 days pass (unless the winter moratorium is in effect and you are certified as eligible for LIHEAP, as discussed above).


If one of the heads of the household is deployed for military service, you can inform the utility company about that, and the utility company is prohibited from disconnecting service during the deployment and for 90 days after that person returns, even if nothing is paid on the bill during that time.

Good Samaritan Rule

Someone else may set up service where you live in his or her name if you have fallen behind in payments to the utility company. This arrangement can avoid gas and electric service shut-offs or get service turned back on if it has been shut off. The utility company cannot require the new customer to pay your old bill as a condition for giving him or her service, but they can require that the standard deposit be paid (up to the highest bill for one month's service at that address in the previous year).

Limitation of Service

Utility companies that provide electric service have the option of providing service limiters for customers who are behind on their utility bills and facing disconnection. This is a device that would limit the amount of electricity provided to a house. The utility company can only install this device if the customer agrees, and it is an alternative to disconnecting the electricity service. This could be something the utilities will use in future, but seek legal advice about options before agreeing to this.

Other Possible Assistance or Payment Options.

Some County General Relief Departments, Area Agencies on Aging, churches and other local charitable organizations may have funds to help Iowans who are low income, have a disability, or are elderly. You should contact your local Area Agency on Aging, churches and charities for program availability.

In addition to the above, utilities must comply with other requirements. These include providing certain notices and a list of customer rights and responsibilities. If you offer a reasonable payment plan and the utility rejects it, or if you otherwise feel that disconnection or refusal of service is not appropriate, you can file a complaint with the Iowa Utilities Board. Contact them at:

Iowa Utilities Board
(877) 565-4450

Iowa Utilities Board
1375 E. Court Avenue, Room 69
Des Moines, Iowa 50319-0069

You can also file a complaint on the Iowa Utilities Board website:


Iowa Legal Aid provides help to low-income Iowans. 

To apply for help from Iowa Legal Aid:call 800-532-1275. 

Iowans age 60 and over, call 800-992-8161 or 

apply online at


If Iowa Legal Aid cannot help, look for an attorney on “Find A Lawyer” on the Iowa State Bar Association website   A private attorney there can talk with you for a fee of $25 for 30 minutes of legal advice.

*As you read this information, remember this article is not a substitute for legal advice. 


Last Review and Update: Jan 06, 2020