Seven Practical Ways to Lower Your Monthly Utility Bills

A utility bill can feel like something that simply happens to you. It arrives, the number is what it is, and you pay it. But every bill is the result of a few specific things: how much energy and water your household uses, when you use it, and the plan you're billed on. Each of those is something you can look at, and often adjust. Here are seven practical places to start, none of which need special equipment or a big upfront cost.

1. Read your bill line by line

Before changing anything, spend ten minutes with your most recent bill. Look for three things: your usage (usually in kilowatt-hours for electricity, therms or hundred cubic feet for gas, and gallons or cubic feet for water), the name of your rate or plan, and any fees or charges you don't recognize.

Many bills include a chart comparing this month with the same month last year. That comparison is more useful than month to month, because it accounts for the season. If usage rose while your routines stayed the same, something may have changed, such as an older appliance working harder or a running toilet.

If a charge doesn't make sense, call and ask about it. The answer sometimes reveals a billing error or a plan that no longer fits.

2. Ask about your rate plan and budget billing

Many utilities offer more than one way to be billed. Two options are worth asking about:

• Time-of-use plans charge different rates at different times of day. They can suit households able to run large loads, like laundry, in off-peak hours, and can cost more for households that can't.
• Budget billing, sometimes called levelized or average billing, spreads your expected yearly cost across equal monthly payments, so a hot summer or cold winter doesn't arrive as one large bill.

3. Heat and cool the people, not the whole house

Heating and cooling are typically among the largest energy uses in a home, so modest changes here tend to matter most.

• Adjust the thermostat a few degrees when everyone is asleep or out. A programmable or smart thermostat can do this automatically, but a note beside the thermostat works too.
• Replace or clean furnace and air-conditioner filters on the schedule in your system's manual. A clogged filter makes equipment work harder.
• Use ceiling fans to feel cooler in summer, and switch them off when you leave the room. Fans cool people, not rooms.
• Close curtains and blinds on hot afternoons, and open them to let the sun in on cold, clear days.
• Keep vents and radiators clear of furniture, rugs and curtains.

4. Seal the small gaps

Drafts around doors, windows and outlets let heated or cooled air escape. On a breezy day, hold a thin strip of tissue near the edges of doors and windows and watch whether it moves. Weatherstripping, caulk, door sweeps and foam gaskets behind outlet covers are inexpensive and sold at most hardware stores.

If you rent, check with your landlord before making changes, and ask whether they will handle bigger repairs such as broken window seals.

5. Lower the cost of hot water

Water heating is another significant energy use in many homes, and it's one of the easiest to adjust.

• Check the temperature setting on your water heater. The U.S. Department of Energy suggests 120°F as a setting that works for most households. If you're not sure how to change yours, follow the manufacturer's instructions or ask your landlord.
• Fix dripping faucets and running toilets. To check a toilet, add a few drops of food coloring to the tank and wait without flushing. If color appears in the bowl, the flapper may need replacing.
• Consider a low-flow showerhead, and keep showers a little shorter.
• Wash clothes in cold water whenever the care label allows.

6. Cut standby power and run full loads

Many electronics draw some power even when they seem to be off, including televisions, game consoles, chargers and anything with a clock or a standby light. Plugging them into a power strip you switch off at night, or an advanced power strip that does it for you, reduces that background use.

Run the dishwasher and washing machine only with full loads, let dishes air-dry, and clean the dryer's lint filter before every load. When a bulb burns out, replacing it with an LED gives you the same light for less electricity.

7. Look at the whole picture of household services

Utilities aren't the only monthly service bills. Internet, phone and streaming plans change over time, so review them once a year. Ask whether a lower-priced plan still meets your needs, and whether any introductory rate is about to end. Our guide on talking to service providers walks through that conversation.

If your bills are already hard to cover, don't wait until you're behind. Many utilities offer payment arrangements, and public programs exist for households that qualify. How energy assistance programs work explains where to begin.

Start with one change

You don't need to do all seven at once. Pick the one that fits your home and your week, such as reading your bill closely or checking the water heater setting, and build from there. A year from now, compare the same month's bill to see what changed.