Utility and Telephone Discounts

What are utility and telephone discounts?

Utility and telephone discounts are lower rates charged to low-income customers for gas, electricity, and telephone service. Massachusetts law requires regulated gas and electric utility companies to offer discounted rates to customers who receive public assistance benefits and meet income limits. Customers with low-income rates get the same level of service as customers paying the standard rate.

Note: Municipal utility companies that are publicly owned do not have to offer discount rates.

Lifeline and Linkup are discounted telephone services for income-eligible Massachusetts customers. Lifeline provides discounted basic local telephone service for landline phones, or free SafeLink cell phone service. Linkup offers discounted installation of landline phones.

What is SafeLink?

SafeLink Wireless Lifeline Service is a new government supported free cell phone service for Massachusetts residents with limited incomes. People who are getting TAFDC, EAEDC, SSI, SNAP food stamps, MassHealth/Medicaid, or LIHEAP fuel assistance are income eligible. The goal of the program is to make cell phone service available to everyone, regardless of income or credit rating.

SafeLink provides a free cell phone plus 80 minutes per month per household. There are no contracts and no monthly fees. TracFone Wireless, a large U.S. prepaid cell phone company, provides the SafeLink service.

With SafeLink Wireless Lifeline Service:

• You will get one free cell phone and 80 free minutes every month per household. Minutes you do not use are rolled over. You can buy additional minutes.

• Voicemail, caller ID, and call waiting are included.

• There are no contracts or monthly fees.

• You cannot get SafeLink Wireless Lifeline Service if anyone in your household already gets Lifeline service from another phone company. You must cancel the other service first.

If you have questions about the program or want to apply, call SafeLink at 1-800-977-3768 or visit the SafeLink Wireless web site.

Am I eligible?

To qualify for gas and electricity discounts:

• Your household income must be within the income limits (see What are the income limits? below)

• You must be getting help from one or more of these public assistance programs:

  • Supplemental Security Income (SSI)
  • Transitional Aid to Families with Dependent Children (TAFDC)
  • Emergency Aid to Elderly, Disabled and Children (EAEDC)
  • SNAP (Food Stamps)
  • Refugee Resettlement Benefits
  • MassHealth/Medicaid
  • LIHEAP Fuel Assistance
  • Head Start
  • Public housing / Subsidized housing (such as Section 8)
  • National School Breakfast/Lunch Program (free)
  • Veterans' Services
  • Veterans Non-Service Connected Disability Pension
  • DIC for Surviving Parents of Veterans
  • other approved public benefit programs (check with your utility company)

• The utility bill must be in the name of the person getting public assistance.

• You must be a residential customer.

To qualify for Lifeline and Linkup telephone discounts:

• You must be getting help from one of the following public assistance programs:

  • Transitional Aid to Families with Dependent Children (TAFDC)
  • Emergency Aid to the Elderly, Disabled and Children (EAEDC)
  • Supplemental Security Income (SSI)
  • MassHealth/Medicaid
  • SNAP (Food Stamps)
  • LIHEAP Fuel Assistance
  • Certain programs for people with limited incomes who live on tribal lands

• The telephone service must be in the name of the person getting public assistance.

• For standard landline telephones, you must have basic local telephone service. Unlimited toll service and long distance calling plans do not qualify.

• For SafeLink cell phone service, you must live at an address where you can get mail from the U.S. postal service (not a P.O. box), and no one else in your household can be getting a Lifeline discount from any phone carrier (landline or cell phone service).

  Note: If you do not qualify for Lifeline telephone service, you may be able to get a free personal voice mail phone number from the Community Voice Mail (CVM) program. See How can I get a phone number if I am homeless or in transition?

What are the income limits?

Many utility discount programs use a gross annual income limit equal to 60% of the state median income (SMI). Other utility companies use a gross annual income equal to 200% of the Federal Poverty Guidelines (FPG). Check with your utility company for their income eligibility rules.

Households that get certain public benefits such as TAFDC, SSI, MassHealth, or SNAP food stamps automatically qualify for utility discounts.

What benefits will I get?

• Gas and electricity:

  You will get lower rates for your gas and electric service. The discounts range from 20% to 35% off the standard residential rate, depending on which utility company you use. Your bill will usually say "R-2" or "R-4" if you are getting the discount rate.

• Lifeline and Linkup for landline phones:

  • Lifeline offers telephone customers a discounted rate on their basic local monthly telephone bill. The Lifeline discount does not apply to long distance charges or cell phone service. Verizon Lifeline customers get a discount up to $18.39 off their monthly bill for local flat rate or measured service. In addition, toll-blocking is offered free of charge.

  • Link Up pays half of the cost of phone installation, up to a maximum of $30. It does not cover the cost of wiring inside your home.

• Cell phone SafeLink Wireless Lifeline Service:

  • You will get one free cell phone and 80 free minutes every month per household. Minutes you do not use are rolled over. You can buy additional minutes.

  • Voicemail, caller ID, and call waiting are included.

  • There are no contracts or monthly fees.

  • You cannot get SafeLink Wireless Lifeline Service if anyone in your household already gets Lifeline service from another phone company. You must cancel the other service first.

You can choose between a Lifeline discount for your landline phone or SafeLink Lifeline cell phone service. You cannot get both.

Getting discount utility rates does not affect your eligibility for other assistance programs.

How do I apply?

There are several ways to apply for utility discounts:

• Automatic enrollment:

  If you get benefits from certain public assistance programs, your utility company should automatically enroll you in its utility discount program. Some benefit programs, including fuel assistance, do not offer automatic enrollment.

  Automatic enrollment works like this:

  1. The utility companies give their customer information to the Department of Transitional Assistance (DTA).
  2. The DTA matches this information against the names of public assistance recipients.
  3. The DTA tells the utility companies which customers qualify for discount rates.
  4. The utility companies automatically enroll these customers in their discount rate programs.
  5. The utility companies notify customers that they have been enrolled, give them information about the low-income rate program, and let them withdraw from the discount program if they choose.

  If you are getting public benefits, check your utility bill or call your utility company to make sure you are getting the discount rate. Most utility companies use "R-2" or "R-4" for the discount rate. If you have not been automatically enrolled, you can apply directly to your utility company.

  If you are a utility customer and do not want your information given to the DTA for automatic enrollment, you should notify your utility company that you want your name removed from the shared list. Otherwise your name will be included on the list given to the DTA

• Fuel assistance clients:

  If you get fuel assistance (LIHEAP) but do not get other public benefits, your fuel assistance agency will contact your utility companies for you.

  To get utility discounts through your fuel assistance agency, the name on your utility bills must match the name of the person getting fuel assistance. If the names do not match, you should change the name on the bills, or apply directly for the discount rates (see below).

• Applying directly:

  You may also apply directly to your utility companies for their discount rate programs. Some utility companies have online applications, or you can call and have an application sent to you.

  • Utility company contact information:

    Contact information for the major Massachusetts utility companies is listed in our Utilities Directory: Massachusetts Utilities Directory.

    If your utility company is not listed, look on your bill for the Customer Service number. You may also call the Department of Public Utilities at 877-886-5066 or the Department of Telecommunications and Cable at 1-800-392-6066 toll free. The DPU and DTC are the Massachusetts agencies that regulate gas, electric, and telephone companies.

  • Lifeline and Link Up landline telephone discounts:

    You can download an application from the Massachusetts Department of Telecommunications and Cable (DTC) web site, and mail it to your telephone company: Application for Lifeline/Link Up Telephone Service (PDF)

  • SafeLink Wireless Lifeline Service:

    You can apply for free cell phone service on the SafeLink Wireless web site: SafeLink Wireless. The application is short and easy to complete.
    
    If you have questions or want an application mailed to you, call SafeLink Wireless at 1-800-977-3768. SafeLink service is provided by TracFone Wireless.

The discount rate is given for one year and must be renewed. Renewal is automatic if you continue to get public benefits that use automatic enrollment. If you apply for fuel assistance each year, your fuel assistance agency will help you. Otherwise you must reapply on your own.

If you stop getting public benefits, you must notify the utility company that you no longer qualify for the discount rate.

Useful links

These links are external links to web sites that are not part of MassResources.org. When you click on these links, you will leave our site. Click "Back" on your browser to return.

1. Help with Your Winter Utility Bill
   From the Massachusetts Department of Public Utilities, information about discount rates, shut-off protection, fuel assistance programs, and home energy conservation.

2. Link Up & Lifeline - What Consumers Should Know
   Information about discount rates on monthly telephone service and telephone installation charges in Massachusetts, including eligibility, benefits, and application form. From the Massachusetts Department of Telecommunications and Cable (DTC).

3. Telephone Assistance Programs for Low Income Households
   Lifeline and Link-up benefit and eligibility information by state and telephone company. From the USAC, the agency in charge of the federal Universal Service Fund that offers help to low income households to pay for basic telephone service.

4. Legal Tactics: Tenants' Rights in Massachusetts
   From the Massachusetts Law Reform Institute, a 2008 handbook about tenants' rights in private housing. Chapter 6 - Utilities (requires Adobe Reader) has excellent information about utility service, shut-off protection, termination of service, discount rates, help paying your bills, and common problems.

5. Massachusetts General Laws, Chapter 164, Section 1F
   Massachusetts laws about utility discount rates, including eligibility requirements, automatic enrollment, funding, and outreach.

6. 220 CMR 11.00 (Electric Utilities) and 220 CMR 14.00 (Gas Utilities) Code of Massachusetts Regulations
   Massachusetts DPU regulations regarding electric and gas utilities, including the rules about discount rates.

7. Utilities Advocacy for Low-Income Households in Massachusetts
   Detailed information about utility arrearage management programs, shutoff protection, discount rates, payment plans, financial assistance, budget plans, and more. From the National Consumer Law Center, 2007 (requires Adobe Reader).

8. SafeLink Wireless
   Information about free cell phone service from SafeLink Wireless, a government supported program provided by TracFone Wireless. Includes benefits, eligibility, how to apply, and Customer Service.

Utility Discounts section last updated on 4/14/10