How to request a payment plan or deferred payment arrangement with a utility

Introduction

If you are behind on an electric, gas, or water bill, asking for a payment plan or deferred payment arrangement can be one of the fastest ways to reduce the risk of disconnection. Many utilities have options for customers facing temporary hardship, and state rules often shape what utilities can offer and when they can disconnect service.

This guide walks you through what to ask for, how to prepare, what to document, and what to do if you have a shutoff notice or a health-related need for reliable service.

How Understood Care can help

If utility costs are adding stress while you are also managing health needs, caregiving, or multiple bills, it can help to have support with organization and follow through.

Understood Care can help you:

• Get your paperwork in order and build a clear “what I can pay” plan: https://understoodcare.com/care-types/analyze-bills
• Collect documents for assistance programs and complete applications: https://understoodcare.com/care-types/application-help
• Explore broader financial support options that can reduce overall strain: https://understoodcare.com/uc-articles/financial-help

What a utility payment plan or deferred payment arrangement is

A utility may use different names, but the most common options fit into a few categories.

Payment plan

A payment plan usually means you pay what you owe over time in set installments. Some plans spread only the past-due balance over several months, while you also pay your new monthly charges as they come in.

Deferred payment arrangement

A deferred payment arrangement usually means the utility agrees to delay part or all of what you owe now, often giving you time to catch up later or start installments after a short pause.

Other options that can help

Depending on your utility and state rules, you may also be offered:

• A due-date extension
• Budget billing (a more predictable monthly amount)
• Fee waivers (late fees, reconnection fees, deposits)
• Hardship programs or income-based discounts
• Temporary protections from shutoff in certain situations (these vary by state)

Before you call: get set up for a better outcome

Utilities often make decisions quickly during the call. A few minutes of prep can make the conversation more productive.

Gather what you need

Have these in front of you:

• Your most recent bill (and any shutoff notice)
• Account number and service address
• Current balance, past-due amount, and due date
• A simple list of what you can pay now and what you can pay each month
• Notes about any changes that affected your ability to pay (job change, illness, caregiving costs, fixed income timing)

Decide what you can realistically commit to

A plan only helps if you can follow it. If money is tight, build a short-term plan based on essentials first (housing, food, medications, transportation, and utilities).

If you are unsure what is realistic, write down:

• Your next 30 days of income
• Your non-negotiable expenses
• The maximum monthly utility payment you can make without skipping essentials

How to ask for a payment plan, step by step

Step 1: Call the utility before the due date if you can

Calling early matters. It is often easier to set up an arrangement before a shutoff process advances.

When you call:

• Ask the representative what options exist for customers who cannot pay the full bill
• Use the words “payment plan” and “deferred payment arrangement” so your request is clear
• If you received a shutoff notice, say so at the start

Step 2: Ask for a plan that fits your situation

You can propose a specific structure. For example:

• “I can pay $___ today and then $___ each month.”
• “I need a short deferral, then I can start installments on (date).”
• “Can we spread the past-due balance over ___ months while I pay the new monthly charges as they come due?”

If the first option offered is not affordable, say that clearly and ask for alternatives. A smaller payment that you can actually make is better than a larger promise that collapses next month.

Step 3: Ask what fees can be reduced or paused

It is reasonable to ask:

• Can late fees be waived or reduced?
• Can a reconnection fee be waived if disconnection already happened?
• Can deposits be reduced or avoided?

Step 4: Confirm what happens with shutoff while you are on the plan

Ask directly:

• Will disconnection activity pause as long as I follow this agreement?
• What counts as “on time” for each installment?
• What happens if I miss a payment by a few days?

Step 5: Get the terms in writing and document the call

Before you hang up, request:

• A confirmation number
• The total amount covered by the plan
• Each payment amount and due date
• Any fees that were waived or added
• The date the agreement starts and ends
• Where you can see the plan on your account (online portal, mailed letter, email)

Then write down:

• Date and time of the call
• Representative’s name or ID (if provided)
• A short summary of what was agreed to

A simple script you can use

You can adjust the wording to fit your situation.

• “Hi, I’m calling because I’m unable to pay my full utility bill by the due date. I want to avoid disconnection and request a payment plan or deferred payment arrangement.”
• “My account number is ___. The past-due amount is ___, and the total balance is ___.”
• “I can pay $___ today. After that, I can pay $___ per month. What options can you offer that match this?”
• “Can you confirm whether disconnection is paused while I follow the agreement?”
• “Are there any hardship programs, discounts, or fee waivers I may qualify for?”
• “Please provide the full terms of this agreement in writing and give me a confirmation number before we end the call.”

If you are a caregiver calling for someone else, you can add:

• “I’m calling as a caregiver. I can provide authorization or speak with you while the account holder is present if needed.”

If you have a shutoff notice or your service is already disconnected

If you received a shutoff notice

Take these steps as soon as you can:

• Call and request a payment plan immediately
• Ask what minimum payment (if any) stops disconnection
• Ask who to contact if you cannot reach an agreement (many states have a utility consumer assistance process)

If service is already disconnected

Ask the utility:

• The total amount required to restore service
• Whether a partial payment plus an agreement can restore service
• Whether reconnection fees or deposits can be waived due to hardship
• How quickly service can be restored after you pay

If you are in extreme temperatures, or disconnection puts someone at immediate health risk, prioritize safety first. If you believe there is an emergency, call local emergency services.

Protections and assistance programs to ask about

Rules vary widely by state and by the type of utility (private, municipal, cooperative). Still, there are common categories worth asking about.

State and local protections

Ask your utility whether your state has protections related to:

• Extreme heat or cold conditions
• Older age
• Disability status
• Serious illness or medical need for electricity (for example, medically necessary equipment)

If you are told “we cannot do that,” ask what agency handles utility consumer complaints in your state and how to contact them.

Federal energy and weatherization support

If you need help beyond a payment plan, ask about:

• Energy bill assistance programs for heating and cooling costs
• Weatherization programs that can reduce future bills through home efficiency improvements

Even if you do not qualify, a utility may still offer hardship options, budget billing, or referrals to local partners.

If losing service could affect your health or safety

Reliable power can be essential if you use medical equipment at home or if certain temperatures worsen symptoms of a health condition. Research has linked energy insecurity with negative health outcomes, and medical device users may face added costs and risks when power is unstable.

If this applies to you:

• Tell the utility you have a health-related need for continuous service and ask what documentation they require
• Ask your clinician’s office what they can provide (some utilities require a form or letter)
• Create a backup plan for critical devices when possible (battery backup options, emergency contacts, local cooling or warming locations)
• If you are feeling overwhelmed, consider asking a trusted family member, caregiver, or advocate to help you make the calls and track paperwork

Tips to reduce stress while you handle this

Money stress can trigger real physical and emotional symptoms. If you notice sleep problems, headaches, stomach upset, irritability, or feeling overwhelmed, you are not imagining it. Chronic stress can affect multiple systems in the body.

A few practical steps that can help while you work the problem:

• Break tasks into small steps (today: call and request options, tomorrow: submit documents)
• Write down a simple call log so you do not have to keep it all in your head
• Ask for help making calls if phone conversations are hard right now
• If stress symptoms are persistent or severe, consider talking with a clinician or mental health professional

FAQ

• How do I request a utility payment plan? Call the number on your bill, ask for a “payment plan” or “deferred payment arrangement,” and propose an amount you can commit to each month.
• What is a deferred payment arrangement with a utility? It is an agreement that delays some or all of what you owe now, often followed by installments later.
• Can a utility disconnect my service if I am on a payment plan? Many utilities pause disconnection while you follow the agreement, but you should ask for the exact policy and get it in writing.
• What should I say when I ask for a payment plan to avoid shutoff? State that you want to avoid disconnection, give the amount you can pay now and monthly, and ask what options match your budget.
• What documents do I need for a utility hardship payment plan? Often your bill, account number, proof of income or benefits, and sometimes documentation of hardship or medical need.
• Can I ask a utility to waive late fees or reconnection fees? Yes. Ask directly whether fees can be reduced or waived due to hardship and request written confirmation.
• Does a past-due utility bill affect my credit? It may not be routinely reported, but unpaid bills sent to collections can appear on credit reports.
• What if I cannot afford any payment plan amount? Ask about hardship programs, budget billing, and government energy assistance, and consider contacting local referral lines for community support.
• What should I do if my electricity is needed for medical equipment? Tell the utility it is a health-related need, ask what medical documentation is required, and make a backup safety plan.
• How can I get help if my utilities are already disconnected? Ask the utility what amount restores service, whether partial payment plus an agreement is allowed, and what emergency options exist in your area.

References

• https://www.cpuc.ca.gov/consumer-support/late-bill-assistance/make-a-payment-plan California Public Utilities Commission
• https://www.usa.gov/help-with-utility-bills USAGov
• https://www.usa.gov/help-with-energy-bills benefits.gov
• https://www.usa.gov/weatherization-energy-programs USAGov
• https://www.energy.gov/scep/wap/how-apply-weatherization-assistance The Department of Energy's Energy.gov
• https://www.congress.gov/crs_external_products/R/PDF/R47417/R47417.2.pdf Congress.gov
• https://www.eia.gov/todayinenergy/detail.php?id=51979 U.S. Energy Information Administration
• https://www.consumerfinance.gov/about-us/blog/behind-bills-three-steps-help-you-make-tough-choices-tight-moments/ Consumer Financial Protection Bureau
• https://www.consumerfinance.gov/about-us/blog/tools-to-help-pay-bills/ Consumer Financial Protection Bureau
• https://files.consumerfinance.gov/f/documents/cfpb_your-money-your-goals_prioritizing-bills_tool.pdf Consumer Financial Protection Bureau
• https://www.consumerfinance.gov/ask-cfpb/does-my-history-of-paying-utility-bills-like-telephone-cable-electricity-or-water-go-in-my-credit-report-en-1817/ Consumer Financial Protection Bureau
• https://consumer.ftc.gov/getting-utility-services-why-your-credit-matters Consumer Advice
• https://www.mayoclinic.org/healthy-lifestyle/stress-management/in-depth/stress-symptoms/art-20050987 Mayo Clinic
• https://my.clevelandclinic.org/health/diseases/11874-stress Cleveland Clinic
• https://www.atsdr.cdc.gov/community-stress-resource-center/php/resources/stress-effects-on-body.html ATSDR
• https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0235068 PLOS
• https://www.nature.com/articles/s41598-024-82464-x.pdf Nature
• https://www.frontiersin.org/journals/sustainable-energy-policy/articles/10.3389/fsuep.2023.1231821/full frontiersin.org