8 min read · Last updated September 15, 2026
- The Low Income Home Energy Assistance Program (LIHEAP) is federally funded but state-run – Ohio’s own consumer-advocate office says applications “may take up to twelve weeks to be processed.”
- Ohio’s Percentage of Income Payment Plan (PIPP Plus) caps a struggling household’s monthly gas-and-electric bill at 5% of income (10% for all-electric homes), with a $10 minimum payment, and it’s an ongoing benefit, not a one-time check.
- A charity hardship fund like Idaho Power’s Project Share can pay up to $450 toward a bill, and a Salvation Army utility-assistance program in Salt Lake City says processing typically takes three to six business days.
- These programs are designed to stack, not compete – Ohio requires percentage-of-income plan applicants to also apply for LIHEAP, and a hardship fund like UGI Utilities’ Operation Share says explicitly it’s meant to “supplement, rather than replace” government assistance.
LIHEAP typically pays the most but can take up to twelve weeks to process, while a percentage-of-income payment plan like Ohio’s PIPP Plus permanently caps your bill at a fixed share of income every month instead of paying out once. A charity hardship fund can pay a smaller amount within days, and government and utility guidance both indicate you can, and often should, apply for more than one program at once.
In this article
- What each option actually is
- What the numbers look like on a real bill
- Choose based on your deadline
- Frequently asked questions
Three kinds of help exist when a utility bill becomes unmanageable: a federally funded Low Income Home Energy Assistance Program (LIHEAP) grant that one state’s own consumer office says can take up to twelve weeks to process, a percentage-of-income payment plan that permanently caps a bill at a fixed share of monthly income, and a charity hardship fund that can pay in as little as three business days. The shutoff notice on the counter usually decides which one to try first. Renata Flores, a home health aide facing a disconnection notice with payment due in five days, doesn’t have twelve weeks to wait on the biggest program, but she also doesn’t realize the two faster options exist alongside it.
What each option actually is
The Low Income Home Energy Assistance Program (LIHEAP) is a federal block grant that funds state, tribal, and territorial programs helping households pay heating and cooling bills. States set their own income limits within federal bounds: per the Administration for Children and Families, a state’s LIHEAP income ceiling can’t exceed the greater of 150% of the Federal Poverty Guidelines or 60% of the State Median Income, and can’t go below 110% of the Federal Poverty Guidelines. LIHEAP typically pays out once per heating season rather than every month, and most states also run a separate “crisis” component specifically for households facing an active shutoff. Processing isn’t instant: Ohio’s LIHEAP-funded Home Energy Assistance Program states that applications “may take up to twelve weeks to be processed,” a real example of how slow the standard, non-crisis track can run.
A percentage-of-income payment plan works differently: instead of a one-time payment, it permanently caps what a household pays toward its utility bill each month, with the state or utility covering the rest. Ohio’s version, called PIPP Plus, bills a participating household 5% of its monthly income for gas and electric combined, or 10% if the home is all-electric, with a $10 minimum payment regardless of income. Ohio sets its own income limit for PIPP Plus at 175% of the Federal Poverty Guidelines, and the benefit continues month after month with annual reverification, rather than paying out once.
A charity hardship fund or pledge program is typically smaller and faster than either government option. Idaho Power’s Project Share, run in partnership with The Salvation Army and local Community Action Partnership agencies, can pay up to $450 toward a customer’s energy bill. A Salvation Army utility-assistance program in Salt Lake City states it’s available once per year per household, with an income limit at or below 150% of the Federal Poverty Guidelines, and says processing typically takes three to six business days – far faster than a state LIHEAP application. These funds generally aren’t meant to stand alone: UGI Utilities’ Operation Share states its own hardship fund “is designed to supplement, rather than replace, existing federal and state assistance programs.”
| Factor | LIHEAP | Percentage-of-Income Payment Plan (e.g. Ohio’s PIPP Plus) | Utility Hardship Fund (e.g. Project Share, Salvation Army) |
|---|---|---|---|
| Benefit size | Varies by state and household factors; not a fixed federal amount | Bill capped at 5% of income (10% if all-electric); $10 minimum payment | Up to $450 a year (Idaho Power’s Project Share) |
| One-time or ongoing | Typically once per heating season | Ongoing – a recurring monthly cap, reverified annually | Typically once per year per household |
| Income test | State-set, within a federal range tied to the Federal Poverty Guidelines or State Median Income | Ohio sets its limit at 175% of the Federal Poverty Guidelines | 150% of the Federal Poverty Guidelines (Salvation Army example) |
| Approval time | Up to twelve weeks (Ohio’s own published estimate) | Processed alongside LIHEAP intake in states that link the two | Three to six business days (Salvation Army example) |
| Can combine with the others? | Yes – required alongside percentage-of-income plan applications in Ohio | Yes – Ohio requires applicants to also apply for LIHEAP | Yes – explicitly designed to supplement, not replace, government assistance |
| Best for | The largest available benefit, if you can wait out processing time | Ongoing, predictable bills every month going forward | An active shutoff notice with only days to respond |
What the numbers look like on a real bill
Say Renata’s household brings in $2,000 a month and her combined gas-and-electric bill runs $180 some months. Under a percentage-of-income payment plan structured like Ohio’s PIPP Plus, her bill would be capped at 5% of that income, or $100 a month, with the utility covering the rest. If her home were all-electric instead, the cap would rise to 10%, or $200 a month – actually above her current $180 bill, meaning the cap wouldn’t reduce her payment in that scenario, since the plan sets a ceiling relative to income rather than guaranteeing a discount off her specific usage.
LIHEAP works on a different structure entirely: rather than a monthly cap, it’s typically a single seasonal payment or credit, with the exact amount set by her state’s program design and the household’s specific circumstances. If Renata’s shutoff date arrives before LIHEAP’s twelve-week processing window closes, a hardship fund like Project Share, paying up to $450, or a Salvation Army-style pledge, responding in three to six business days, can cover the gap while the larger, slower benefit is still pending.
Choose based on your deadline
Choose LIHEAP if you’re not facing an immediate shutoff and can wait out a multi-week application process for what’s often the largest available benefit. Choose a percentage-of-income payment plan if your state or utility offers one and your struggle is ongoing rather than a single crisis – it resets your bill every month, not just once. Choose a charity hardship fund first if you have a shutoff notice with a deadline of days, not weeks, and apply for the slower programs at the same time rather than waiting to see if the fast one is enough.
What could change this calculus: not every state runs a percentage-of-income payment plan the way Ohio does, so check with your own state’s public utility commission or energy office for an equivalent program. A utility’s own hardship fund balance can also run out before the season ends, so applying earlier rather than later matters even for the fastest option.
Frequently asked questions
Can I apply for LIHEAP and a percentage-of-income payment plan at the same time? In states that run both, yes – Ohio’s PIPP Plus program actually requires applicants to also apply for LIHEAP and weatherization assistance as part of the process. Applying for multiple programs at once is standard practice, not something that disqualifies you.
Do I have to pay back LIHEAP or a hardship fund grant? No. Both LIHEAP and charity hardship funds like Project Share or Salvation Army utility assistance are grants, not loans – you don’t repay them. A percentage-of-income payment plan isn’t a grant either; it simply caps what you owe each month based on income.
What if my state doesn’t have a percentage-of-income payment plan like Ohio’s? Some states run similar programs under different names, while others don’t offer one at all. Contact your state’s public utility commission or energy assistance office to find out what’s available, since LIHEAP and local hardship funds still exist even where a percentage-of-income plan doesn’t.
Will applying for one of these programs stop a shutoff that’s already scheduled? It depends on your utility’s own policy and how far in advance you apply – many utilities pause a scheduled disconnection once they receive proof you’ve applied for assistance, but this isn’t guaranteed everywhere. Call your utility directly and ask before assuming a pending application protects you.
How do I find the percentage-of-income plan or hardship fund available in my own state? Start with 211, a free helpline and directory that connects callers to local assistance programs, or your state’s energy assistance office. Your utility company can also tell you directly whether it participates in a hardship fund or percentage-of-income plan.
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