What counts as a utility
A utility is an essential service delivered to your home over shared infrastructure — usually by a regulated monopoly, sometimes by a private company you get to choose. For most households the list is short but the bills are not.
Electricity
Almost always the largest utility bill. In some states the wires company and the energy supplier are separate, and you can choose the latter.
Natural gas
Heating, hot water and cooking in much of the country. Highly seasonal — a winter bill can be several times a summer one.
Water and sewer
Usually municipal, rarely optional, and often billed quarterly. Sewer charges are frequently calculated from water use.
Waste and recycling
Either bundled into local taxes or contracted privately, depending on the municipality.
Internet
Not a regulated utility, but treated as essential by almost every household. This is the one with the most genuine choice.
Home security
Optional, but commonly set up at the same time as everything else when moving in.
What utilities typically cost
National averages are a starting point, not a forecast. Climate, house size, insulation, local rates and how many people live with you move these numbers enormously — heating a draughty house in Minnesota and cooling a flat in San Diego produce very different bills from identical habits.
| Utility | Typical monthly cost | What drives it |
|---|---|---|
| Electricity | $110 – $160 | Air conditioning, electric heating, home size, local rate per kWh |
| Natural gas | $50 – $100 (annual average) | Winter heating; summer bills are far lower |
| Water and sewer | $40 – $80 | Household size, irrigation, municipal rates |
| Waste and recycling | $20 – $45 | Whether the municipality bundles it into taxes |
| Internet | $50 – $80 | Speed tier, equipment rental, promotional status |
Typical ranges for a mid-sized US household. Verify against your local provider and the EIA before budgeting.
Setting up utilities when you move
The goal is arriving to a house with power, water and heat already on, and no overlap paying for the old address. Two weeks of notice is usually enough; internet installation is the step that most often needs longer.
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1
Three to four weeks out — find out who serves the address
Electricity and water are typically fixed by geography. Internet and, in some states, your energy supplier are a genuine choice. Start with the internet check, because installation slots book up furthest ahead.
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2
Two weeks out — schedule start dates
Set services to start the day before you take possession, so you are never moving in the dark. Book internet installation for moving day or the day after.
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3
Two weeks out — set stop dates at the old address
Stop the day after you leave, not the day you leave. Overlapping by one day costs pennies; a gap costs a service call.
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4
Moving day — take meter readings
Photograph the meters at both properties. It is the only defence against an estimated bill you disagree with.
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5
First week — check the first bills
Confirm the start dates and readings match what you agreed, and that no deposit was charged that should not have been.
- Have ready: the new address with unit number, your move-in date, photo ID, and often a Social Security number for the credit check.
- A deposit is common without local credit history, and is usually refunded after twelve months of on-time payment.
- Landlords sometimes require proof that utilities are in your name before handing over keys.
Reducing what you pay
Electricity
Heating and cooling dominate the bill. A programmable thermostat, sealing draughts around doors and windows, and LED lighting deliver most of the available saving. Where time-of-use rates exist, shifting laundry and dishwashing off-peak is free money.
Natural gas
Lowering the thermostat a couple of degrees and insulating the loft do far more than anything at the appliance level. Servicing the furnace before winter keeps it running efficiently.
Water
Low-flow fixtures and fixing a running toilet — which can waste more water than the rest of the house combined — are the two that pay back fastest. Outdoor irrigation is usually the biggest single line.
Every bill
Budget billing evens out seasonal spikes without reducing the total. Paperless and autopay discounts are small but permanent. And ask about rate plans annually — most people are on whatever they signed up to years ago.
Where you can choose your energy supplier
In a deregulated market the company that owns the wires or pipes is separate from the company that sells you the energy. The infrastructure company still handles outages and still bills you for delivery; you choose who supplies the actual electricity or gas, and at what rate.
Retail energy choice exists in around a dozen states plus the District of Columbia, most extensively in Texas, and in several more states for natural gas only. Some states offer it to businesses but not households. Because the rules change, confirm your own state before assuming you can switch.
What choice gets you
- Competitive rates, and the ability to lock one in.
- Genuine renewable-energy plans if that matters to you.
- Fixed-rate contracts that protect against price spikes.
What to watch for
- Teaser rates that jump to a variable rate at the end of the term.
- Early termination fees on fixed contracts.
- Monthly fees that make a low per-unit rate misleading.
- Door-to-door sales tactics — never sign anything at the door.
Help if you are struggling to pay
Assistance exists and is significantly under-claimed. Eligibility is usually based on household income relative to the federal poverty guideline or the state median income, and applying takes less time than most people expect.
- LIHEAP — the Low Income Home Energy Assistance Program helps with heating and cooling bills, and with reconnection after a shut-off. Administered by each state.
- Weatherization Assistance Program — funds insulation and efficiency work that permanently lowers bills, at no cost to qualifying households.
- Lifeline — an FCC programme discounting phone or internet service for qualifying low-income households.
- Utility hardship funds — most large utilities run their own, often with a charitable partner, and they are not means-tested as strictly as federal programmes.
- Budget billing and payment plans — available on request from virtually every utility, and they stop a shut-off proceeding while you are on one.
If you rent
- Establish in writing which utilities are included in rent before you sign.
- In shared buildings, water and waste are often the landlord’s and electricity yours.
- Putting utilities in your own name builds a payment history that reduces deposits later.
- Some buildings have an exclusive internet arrangement — check before assuming you can choose.
- Take meter photographs on the day you move in and the day you leave.