Indiana's New Heat-Related Shutoff Protection — And Why It's Only Part of the Answer

Indiana now restricts electric and gas utility shutoffs on the hottest days of the year, offering a critical short-term safety net for households that fall behind on their energy bills during summer. But this protection covers only certain regulated utilities and specific customer categories — and it does nothing to reduce the balance you owe. For lasting relief, the Low Income Home Energy Assistance Program (LIHEAP) may be the most important program you haven't applied for yet.

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Data Snapshot

LIHEAP is federally funded through the U.S. Department of Health and Human Services (HHS). In federal fiscal year 2023, Indiana received approximately $138 million in LIHEAP funding to help low-income households manage heating and cooling costs (source: HHS LIHEAP State and Territory Data — https://www.acf.hhs.gov/ocs/programs/liheap). Nationally, LIHEAP served roughly 6.1 million households in 2022, according to HHS data. Despite that reach, the program is significantly underfunded relative to need — the National Energy Assistance Directors' Association estimates that fewer than 1 in 5 eligible households actually receives assistance in a given year. That means millions of people who may qualify are leaving money on the table.

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What Indiana's Shutoff Rule Actually Does

The Indiana Utility Regulatory Commission (IURC) rule creates a framework that prevents regulated electric utilities from disconnecting residential customers during declared extreme heat events — generally when temperatures reach dangerous levels that pose a public health risk. Here's what the rule does and doesn't do:

Who Is Covered - Customers of IURC-regulated electric utilities (such as AES Indiana, Duke Energy Indiana, and Indiana Michigan Power) - Residential accounts in good-faith contact with their utility about payment difficulties may receive additional protections - Customers who have applied for or are receiving LIHEAP assistance may be flagged for additional consideration

Who May Not Be Covered - Customers of rural electric cooperatives or municipal utilities, which operate under different regulatory frameworks - Commercial or industrial accounts - Customers who have not communicated with their utility or made any payment arrangements

What the Rule Does NOT Do - It does not forgive or reduce your outstanding balance - It does not prevent shutoffs once the heat event ends - It does not automatically enroll you in any payment assistance program

The bottom line: this rule buys time. What you do with that time — specifically, whether you apply for LIHEAP or negotiate a payment plan — determines whether your lights stay on past the next heat wave.

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LIHEAP: The Federal Program That Can Actually Reduce Your Bill

The Low Income Home Energy Assistance Program (LIHEAP) is a federally funded, state-administered program that helps low-income households pay for heating and cooling costs. In Indiana, the program is administered by the Indiana Housing and Community Development Authority (IHCDA) through a network of local Community Action Agencies.

Income Eligibility (General Guidelines)

LIHEAP eligibility is based on household income relative to the Federal Poverty Level (FPL). In Indiana: - Most households at or below 150% of the FPL may qualify for heating or cooling assistance - Some crisis assistance components may serve households up to 60% of Indiana's state median income - Households already receiving SNAP, SSI, TANF, or certain veterans' benefits may be categorically eligible, meaning income verification is streamlined

Because FPL thresholds change annually, check the current figures at Benefits.gov or contact your local Community Action Agency for the most up-to-date numbers.

What LIHEAP May Cover - Heating assistance: Help with natural gas, electric, propane, or other heating fuel costs during winter months - Cooling assistance: Help with electric bills during summer, particularly for households with elderly members, young children, or members with medical conditions - Crisis assistance: Emergency help when a shutoff notice has already been issued or service has already been disconnected - Weatherization referrals: Some LIHEAP programs connect households to weatherization services that reduce long-term energy costs

Benefit amounts vary by household size, income, and the type of fuel used. There is no single fixed amount — your local agency will calculate what may be available to your household.

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Documents You'll Need to Apply

Gathering your paperwork before you contact your local agency will make the process faster. Most LIHEAP applications in Indiana require:

  • Proof of identity: Government-issued photo ID for the applicant
  • Proof of income: Pay stubs (typically the last 30 days), Social Security award letters, unemployment benefit statements, or other income documentation for all household members
  • Proof of residence: A current lease, mortgage statement, or utility bill showing your address
  • Most recent utility bill: The account number and current balance are essential
  • Social Security numbers: For all household members (or documentation of immigration status if applicable)
  • Proof of categorical eligibility (if applicable): A current SNAP, SSI, or TANF award letter can simplify the income verification process

If you're in a crisis situation — meaning a shutoff notice has already arrived — bring that notice with you. Crisis cases are often prioritized.

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How to Apply for LIHEAP in Indiana: Step-by-Step

Step 1: Find your local Community Action Agency. LIHEAP in Indiana is not applied for at a single state office. You apply through the Community Action Agency serving your county. The IHCDA maintains a directory at ihcda.in.gov. You can also call 211 (Indiana's social services helpline) to be connected to the right agency.

Step 2: Check current application windows. LIHEAP funding is released in cycles. Indiana typically opens heating assistance applications in the fall (often November) and cooling assistance in summer. Crisis assistance may be available year-round depending on funding availability. Call your local agency to confirm current openings.

Step 3: Submit your application. Many Indiana Community Action Agencies now offer online applications, phone applications, or in-person appointments. Ask which method is fastest given current wait times in your area.

Step 4: Follow up. After submitting, ask for a confirmation number or case number. Processing times vary — routine applications may take two to four weeks, while crisis cases are often handled within 48 hours. If your shutoff date is imminent, tell the agency immediately.

Step 5: Notify your utility. Once you've applied for LIHEAP, contact your utility company and let them know. Many utilities are required to delay disconnection for customers with a pending LIHEAP application. Ask your utility's customer service team about their specific policy.

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Other Programs That May Help

LIHEAP isn't the only option. Depending on your situation, these programs may also be available:

  • Utility company assistance programs: AES Indiana, Duke Energy Indiana, and other utilities offer their own low-income rate programs and payment assistance. Ask your utility directly about budget billing, low-income rates, or hardship funds.
  • SNAP (Supplemental Nutrition Assistance Program): If your household receives SNAP benefits, you may be categorically eligible for LIHEAP, and SNAP itself frees up household income that can go toward utility bills.
  • Weatherization Assistance Program (WAP): Administered separately from LIHEAP, WAP provides free energy efficiency improvements (insulation, HVAC tune-ups, etc.) that can permanently lower your monthly bills. Income limits are similar to LIHEAP.
  • Local emergency assistance: Many counties have emergency funds through churches, nonprofits, or local government that can help with a one-time utility payment. Your local 211 operator can connect you.

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Realistic Timeline: What to Expect

| Situation | Recommended Action | Typical Timeline | |---|---|---| | No shutoff notice yet | Apply for LIHEAP during open enrollment | 2–4 weeks for processing | | Shutoff notice received | Apply for LIHEAP crisis assistance + call utility | 24–72 hours for crisis cases | | Service already disconnected | Contact agency immediately; crisis funds may help with reconnection | Varies; act same day |

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People Also Ask

Does Indiana's heat shutoff protection apply to all utility customers? No. The protection applies to customers of IURC-regulated electric utilities. Customers served by rural electric cooperatives or municipal utilities may not be covered under the same rules. Contact your utility directly to ask about their disconnection policies during extreme heat events.

How do I know if I make too much money for LIHEAP? LIHEAP eligibility is generally set at or below 150% of the Federal Poverty Level, though Indiana may use a different threshold for some assistance types. Income limits change annually. The best way to find out if your household may qualify is to contact your local Community Action Agency or visit Benefits.gov for current guidelines.

Can I apply for LIHEAP if I rent and my landlord pays the utilities? It depends. If your utility costs are included in your rent, you may still be eligible for a benefit paid directly to your landlord. Some states and local agencies have specific provisions for renters. Ask your local Community Action Agency how they handle this situation.

What happens if LIHEAP funds run out before I apply? LIHEAP is a block grant program with limited annual funding. When funds are exhausted, agencies stop accepting applications until the next funding cycle. Applying early in the enrollment period gives you the best chance. If funds are depleted, ask your agency about other emergency resources and contact your utility about payment arrangements.

Will applying for LIHEAP stop a shutoff that's already scheduled? It may. Many utilities are required to delay disconnection for customers with a pending LIHEAP application. You must notify your utility that you've applied. This is not guaranteed in every case, so contact both your utility and your local LIHEAP agency as soon as you receive a shutoff notice.

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Program eligibility and availability vary by state. Not affiliated with any government agency.

Last reviewed: October 2026