Help paying utility bills in Palo Alto

Most Californians who need help with power bills hear about CARE, FERA or Medical Baseline, the discount programs run by PG&E and the state's other investor-owned utilities. Palo Alto is different. The city owns its electric, gas, water and wastewater systems through City of Palo Alto Utilities, known as CPAU. Those state programs do not apply here. The city runs its own versions instead. County nonprofits add federal and water bill aid on top.

This page is informational. It describes the programs as CPAU, Sacred Heart Community Service and Valley Water publish them in November 2026. The program that decides eligibility always has the final word. For a broader introduction to the city's utility, including how to open an account, see our utilities guide.

The Rate Assistance Program

The city's main discount is the Rate Assistance Program, or RAP. According to the city's RAP page, it takes 35 percent off electricity charges and 25 percent off gas charges. There are two ways to qualify: financial need or medical need. You choose one category on the application.

The fine print on the application form matters:

• The discount applies to electricity and gas only. It does not reduce water, wastewater or refuse charges or the Utility Users Tax.
• It covers one utility account per customer and cannot be combined with other discounts.
• You may need to re-establish eligibility each year and must report changes.
• Giving wrong information can mean repaying up to twelve months of discounts.

Qualifying by income

On June 1, 2026 the City Council raised the RAP income limit from 50 percent to 80 percent of area median income, effective July 1, 2026. That change brought many working households into range for the first time. The city bases eligibility on the household's most recent monthly income. These are the limits the city posts:

The city adds $13,000 a year for each additional person. For a financial application, the form asks for proof of income for every adult in the household, such as a recent tax return, W-2 or 1099 forms or the last 30 days of pay stubs. Benefit award letters and unemployment notices count too. Renters attach a lease listing everyone who lives in the unit. The form also asks whether anyone in the household receives public assistance such as CalFresh, LIHEAP, SSI or TANF.

Qualifying by medical need

The second path is for households whose medical condition, treatment or equipment drives up energy use. Think of an oxygen concentrator running all day, a home dialysis machine or a home that must stay warm for someone with a specific condition. This medical need category is the closest thing Palo Alto has to the Medical Baseline program elsewhere in the state. We did not find a separate medical baseline allowance on CPAU's assistance pages.

• Physician certification. A doctor signs a statement on letterhead certifying that you are a patient and qualify for the city's Medical Need rate reduction, with the date, a signature, a medical license number and a phone number.
• Life-support equipment. The form refers to the definition in California Public Utilities Code 739, which covers devices such as respirators, hemodialysis machines and motorized wheelchairs.
• Permanent conditions. A physician can note that a condition is permanent so the discount renews automatically each year.

The form does not list an income test for the medical category. If anyone in your home depends on powered equipment, also make sure the mobile numbers on your account are current so you receive outage texts. Our power outages guide explains how those alerts work.

How to apply for RAP

1. Get the form. Download it from the city's RAP page in English, Spanish, Traditional Chinese or Russian, or apply online, which the form says is the fastest route.
2. Attach documents. Income proof for a financial application or the physician certification for a medical one.
3. Submit it. Email a scan or photo to CreditCollections@PaloAlto.gov, fax it to (650) 326-4941 or mail it to Utilities Credit and Collections, 250 Hamilton Avenue, Ground Floor, Palo Alto, CA 94301.
4. Ask questions. The form lists (650) 329-2161, Monday to Thursday from 8 a.m. to 5:30 p.m. and Friday from 8 a.m. to 4:30 p.m.

One-time help: Project Pledge and REAP

If a single bill has gotten away from you, the city points to Project Pledge, which may cover a one-time payment. CPAU's assistance page says to call Utilities Customer Service at (650) 329-2161 to check eligibility. The city describes help on utility costs for people on a limited income, facing financial hardship or carrying high medical expenses.

The Residential Energy Assistance Program (REAP) works on the cost side. The city says it can help lower energy and water costs by improving a home's efficiency. Ask Customer Service how to apply. Households planning bigger changes, such as a heat pump, should also read our electrification rebates guide, since some city rebates pay more to income-eligible customers.

LIHEAP through Sacred Heart

The federal Low Income Home Energy Assistance Program, or LIHEAP, sends a once-a-year credit to an eligible household's energy bill. In Santa Clara County, Sacred Heart Community Service in San Jose runs it. Its utility assistance page lists City of Palo Alto as an eligible provider, along with PG&E, Silicon Valley Power, submetered service and energy included in rent.

• Apply: online at caliheapapply.com or by requesting a paper form from Sacred Heart.
• Contact: 1-877-278-6455 or heap@sacredheartcs.org. Sacred Heart says staff cannot return calls about application status.
• Timing: applicants should get a letter within about eight weeks.
• Limits: funding is limited and demand is high, so eligible households may still be denied. Sacred Heart posts its 2026 income guidelines as an image on its page.

While you wait, Sacred Heart advises calling your utility about a payment arrangement to avoid disconnection. Its office is at 1381 South First Street, San Jose, (408) 278-2160.

Water bill assistance

Because RAP leaves out water, the county's Water Rate Assistance Program (WRAP) fills a gap. Valley Water and Sacred Heart run it together. CPAU lists it among its assistance options. Qualifying households can receive up to $1,000 once per program year, paid directly to the water provider. Sacred Heart says you need to:

• live in Santa Clara County and be responsible for a residential water bill due within 30 to 60 days;
• show current proof of income for the household, or proof of CalFresh or CalWORKs from the last 30 days;
• fall within its income limit and complete an application.

Call (408) 916-5014 or email waterassistance@sacredheartcs.org. Applications come in English, Spanish, Vietnamese and Mandarin.

Other ways to keep bills down

• Use major appliances outside the 4 to 9 p.m. peak if you are on the city's time-of-use rate. Our heat waves page explains why summer afternoons cost more.
• Older adults can start with Avenidas for referrals. Our resources for older adults page has its contacts.
• If groceries are competing with the utility bill, see our food assistance guide.
• Renters whose utilities are included in rent can still ask Sacred Heart about LIHEAP, which lists energy included in rent as eligible.

Frequently asked questions