Pennsylvania low-income households could be auto-enrolled for bill discounts, but hurdles remain

Despite thousands missing out on utility aid, auto-enrollment for qualifying low-income Pennsylvanians is still up for debate.

Here’s what to know

Only a minority of households that qualify for utility discounts are receiving them, even though Pennsylvania requires electric and natural gas companies to offer aid to low-income customers, Spotlight PA reported. State data show that in a typical year from 2014 through 2024, only around 22% of eligible gas customers and 23% of eligible electric customers received assistance.

Under that state’s new data-sharing system, residents applying for the Low Income Home Energy Assistance Program (LIHEAP) can authorize the state to send their income information to the utility, so they do not have to document eligibility a second time.

Some utilities and consumer advocates say that still does not go far enough, and they want qualifying customers enrolled automatically. Duquesne Light Company argued that “income-eligible customers should not be overpaying for electricity when there is an easy, automatic method” to sign them up for assistance.

Pennsylvania Public Utility Commission Chair Stephen DeFrank has been adamantly against it. While he supports using LIHEAP data to streamline the application process, he does not think enrollment should be the default option.

A Pennsylvania Public Utility Commission (PUC) spokesperson said DeFrank wants to ensure that “efforts intended to help customers do not inadvertently affect other consumer rights or choices.”

More background

Households at or below 150% of the federal poverty line — about $24,000 for one person — may qualify for reduced monthly utility bills, Spotlight PA reported. In some situations, customers who keep making payments can also have past-due balances forgiven.

Data from utility rate cases cited by Spotlight PA indicate that eligible customers who are not enrolled are more likely to fall behind on bills and face shutoffs. The stakes have grown as utility prices have risen and shutoffs have reached record highs.

The Office of Consumer Advocate said in a 2023 review that “significant paperwork,” “unreasonably short” deadlines, and “cumbersome processes” are pushing people out of the system.

The Coalition for Affordable Utility Services and Energy Efficiency in Pennsylvania has argued that the PUC is holding up data-based changes that could quickly lower bills for thousands of households.

What’s being done?

Even without approval for opt-out enrollment, utilities have continued trying to enroll more eligible customers. Companies have expanded outreach through letters, emails, phone calls, and community partnerships, and a 2024 evaluation linked stronger UGI outreach with higher participation. Still, a survey found that only 27% of eligible customers who were not enrolled knew the program existed.

A separate process that started in 2023 has already allowed the Philadelphia Water Department to automatically enroll some eligible customers. By the end of fiscal year 2026, the total had climbed to nearly 50,000.

Households can still apply for LIHEAP and check the box that allows their income data to be shared with the utility. That will not automatically enroll them, but it can make it easier to access bill discount programs and reduce paperwork.

Pennsylvania Public Utility Commission Vice Chair Kimberly Barrow said during a commission meeting that the participation gap is “way too wide.”

“I know there are a lot of unmet needs and I hope to see that tightened up on,” she said.

Where can I learn more?

Across the country, states are trying different ways to lower utility costs and protect struggling households. Check it out.

• In Kentucky, lawmakers pushed a bipartisan bill to ban utility shutoffs during dangerous weather.

• In Illinois, senators proposed a rebate program for families falling behind on utility bills.

• In New York, officials launched annual electric bill relief for more than 800,000 households.

• In California, regulators approved a rule that undercuts community solar savings for low-income renters.

• In Minnesota, lawmakers weighed changes to community solar incentives that have lowered bills for decades.

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