Help paying utility bills in Alabama

Find out who writes the rules for your bill

Start with the company name printed on your bill, because it decides which rules protect you. The Alabama Public Service Commission (PSC) sets General Rules for the utilities it regulates. The PSC says it does not regulate electric cooperatives, municipal utilities, the Tennessee Valley Authority (TVA) or most water companies. A cooperative, a city power board or a city water and sewer department can follow its own late payment and shutoff policy. Call the number on the bill and ask for that policy in writing, along with the earliest date your service could end. Write down who you spoke with and when. Those notes help later if you need the PSC, or the city, to look at how your account was handled.

Alabama's 32 degree rule and the notice clock

Rule 12 of the PSC General Rules sets the timeline for regulated utilities. A bill not paid within 10 days of its due date becomes delinquent, and a collection fee approved by the PSC can be added if the utility sends a collector to the home. Before cutting service, the utility must give at least five days of written notice under a bold heading such as Disconnect Notice or Final Notice. Residential electric and natural gas service cannot be cut for nonpayment on a calendar day when the National Weather Service forecasts 32 degrees Fahrenheit or below for that location. Service also cannot be cut for nonpayment after 3:30 p.m. on the day right before the utility's office will be closed. The General Rules contain no matching protection for summer heat.

Ask for more time or installments

Rule 12 requires every utility office to have at least one employee with the power to extend a payment deadline and to accept a bill in installments. Ask for that person by role if the first agent says no. You can pay a delinquent account at any time before service is actually disconnected, so a partial payment plus a written plan can stop a cutoff that is days away. Rule 12(E) also requires each utility to adopt and follow tariff rules for cases where life or health may be threatened by a shutoff, or where a customer needs special consideration because of age or a disability. Ask the utility to explain that tariff rule and tell you exactly what proof it accepts.

Applying for LIHEAP in Alabama

The Low Income Home Energy Assistance Program (LIHEAP) in Alabama is run by the Alabama Department of Economic and Community Affairs (ADECA) with federal funds. ADECA does not take applications itself. Instead, it contracts with community action agencies and local nonprofits, and its LIHEAP page lists 18 regional agencies with a county map. Households with income at or below 150 percent of the federal poverty level can qualify, and priority goes to the lowest incomes, homes with high energy costs, older adults, people with disabilities and families with young children. The program covers both heating and cooling costs. While you are in touch with your local agency, ask about the Alabama Weatherization Assistance Program, which ADECA also lists among its low income programs.

Alabama Power programs worth asking about

Alabama Power lists several kinds of help on its payment assistance page. Project SHARE, run with the Salvation Army, serves low income Alabamians who are 60 or older, disabled, or both, and you apply at a local Salvation Army office. The Alabama Business Charitable Trust Fund (ABC Trust), set up by Alabama Power, is handled through community action agencies for people with low income or a temporary hardship. Customers who receive Supplemental Security Income (SSI) or Medicaid for Low Income Families (MLIF) may be eligible to save $14.50 a month through the Low Income Assistance Program. Customers whose income arrives on a fixed government schedule can ask about alternate payment dates. If your gas or water comes from another company, ask that company what it offers.

Taking a problem to the PSC

Every disconnect notice from a regulated utility must say that disputes go first to the utility and then to the PSC if they are not resolved. Give the utility a fair chance, and keep notes with the date, time, staff name and answer. If that fails, contact the PSC Consumer Service Section. You can use the online complaint form on the PSC website, call during weekday business hours, or mail a letter to the Commission in Montgomery with your contact information, the utility's name and a short description of the problem. The PSC says you can still reach out even without detailed notes. Keep paying what you can while the complaint is reviewed, since the balance does not pause on its own.

How Settlemont can sit alongside these programs

Settlemont is bill payment technology run by a for-profit company, and it accepts Utility, Medical and Education bills. An Alabama bill owner submits privately with six fields: first name, email, state, bill category, amount and due date. After that you receive a one-time private access code and name your biller in a separate private step, then staff verify the biller, you and the current balance. An approved page shows only your first name, Alabama, the category and the verified amount. Supporters who choose your bill pay a service fee of 7% by card or 5% by bank on top, and their support goes directly to Alabama Power or your other biller. You pay Settlemont nothing. Approval does not promise payment by the due date, so keep your LIHEAP application and payment plan moving.

Sources

• Alabama Public Service Commission: General Rules
• Alabama Public Service Commission: File a Complaint
• Alabama Public Service Commission: Consumers
• ADECA: Low-Income Home Energy Assistance Program
• Alabama Power: Payment Assistance

Facts checked November 2026. Rules change, so confirm with the agency or utility before relying on a protection.

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