7 min read · Last updated October 8, 2026

A household enrolled in Ohio’s Percentage of Income Payment Plan (PIPP) Plus earns utility arrearage forgiveness worth one twenty-fourth of its overdue balance every time it pays on time, a program open to households at or below 175% of the federal poverty level, $57,750 a year for a family of four in 2026.

In this article

• What a winter moratorium actually does, and doesn’t do
• Utility arrearage forgiveness: how Ohio’s 1/24 program works
• The worked math: what $600 in arrears looks like on a payment plan
• When to start, before the moratorium window even opens
• What families get wrong
• Frequently asked questions

What a winter moratorium actually does, and doesn’t do

Montana bars most regulated utilities from disconnecting gas or electric service between November 1 and April 1 without the state Public Service Commission’s approval. That protection kicks in for a household at or below the federal poverty line, a household receiving public assistance, or a household with a member age 62 or older or living with a disability.

Montana’s own consumer guidance calls out a specific misconception directly: having children in the home, at any age, does not by itself stop a winter disconnection. The protection in that state runs on income, assistance status, age, and disability, not on whether a child lives there.

A moratorium like this one also only delays the shutoff. The balance behind it is still due, still growing, and a utility can typically move forward once the protected window ends if nothing was paid in the meantime.

Utility arrearage forgiveness: how Ohio’s 1/24 program works

Ohio runs a structurally different kind of protection. Its Percentage of Income Payment Plan (PIPP) Plus lets an eligible household pay a set percentage of its income toward an electric or natural gas bill, rather than the full billed amount, and it’s open to households at or below 175% of the federal poverty level, $57,750 a year for a family of four in 2026.

Every time a PIPP Plus household makes that required payment on time, state regulation requires the utility to reduce the household’s existing arrearage by two things at once: the gap between what the full bill would have been and what PIPP Plus actually required that month, plus one twenty-fourth of the household’s arrears balance from when they enrolled. Keep making on-time payments and both credits keep stacking until the arrearage hits zero. Exactly how long that takes depends on the size of your own payment gap, as the worked example below shows.

Feature	Winter moratorium (example: Montana)	Arrears forgiveness (example: Ohio PIPP Plus)
What it does	Pauses an eligible disconnection for a set season	Reduces the overdue balance itself every on-time month
Does it erase the debt?	No, the balance keeps accruing	Yes, a little with every on-time payment, until the balance reaches zero
Who qualifies	Income at the poverty line, public assistance, age 62+, or disability	Income at or below 175% of the federal poverty level
Does having children matter?	Not in Montana specifically	Not a factor either way; income is the test
Best for	A household that needs the season to find a longer-term plan	A household ready to commit to monthly payments and actually clear the balance

The worked math: what $600 in arrears looks like on a payment plan

Monica Reyes, a mother of two in Dayton, Ohio, is carrying a $600 overdue electric balance into fall. Her actual monthly bill runs $140, but her required PIPP Plus payment, based on her income, is $90.

Each month she pays that $90 on time, the utility credits $50 toward her arrearage, the gap between the $140 bill and the $90 payment, plus $25, one twenty-fourth of the $600 starting balance. That’s $75 credited against the $600 balance for a single on-time payment. At $75 a month, Monica’s $600 arrearage would clear in 8 months of on-time payments, well before winter even ends.

When to start, before the moratorium window even opens

The deadline that matters isn’t the first day of a state’s winter protection window. It’s the date a utility actually files for permission to disconnect a specific account, and arrearage-forgiveness programs like PIPP Plus run year-round, not just in winter. Applying for help with the Low Income Home Energy Assistance Program (LIHEAP) in the fall, before any shutoff notice arrives, gives a household like Monica’s time to get an arrearage plan approved and start building a payment history before the season that puts the most pressure on a utility bill even begins.

Families who want the full picture on protection rules by state should also see our guide to utility shutoff protections for families with children, and anyone who hasn’t applied for LIHEAP yet should start there first.

What families get wrong

The most common mistake is assuming a winter moratorium means the debt disappears, then getting a disconnection notice the week the protected season ends with the full balance still due. The second is waiting for an actual shutoff notice before calling the utility, instead of calling in the fall when more payment options are usually still available. The third is assuming an arrears plan runs itself; missing even one payment on a plan like PIPP Plus typically costs that month’s forgiveness credit and can end the plan entirely if it keeps happening.

Frequently asked questions

Does a winter shutoff moratorium erase what I owe? No. A moratorium like Montana’s November 1 to April 1 rule only pauses a disconnection for households that meet specific conditions. The balance keeps accruing, and a utility can typically resume collection or move toward disconnection once the protected period ends if nothing was paid.

Does having young children protect my family from a winter shutoff? Not automatically everywhere. Montana’s own Public Service Commission calls this a common misconception; that state protects households based on income, public assistance status, age 62 or older, or disability, not simply because children live there. Check your own state’s specific rule rather than assuming.

How does Ohio’s PIPP Plus actually forgive debt? Each time you make your required income-based payment on time, the utility reduces your arrearage by the gap between that payment and your actual bill, plus one twenty-fourth of your arrears balance at enrollment. Keep paying on time and both credits keep stacking until your arrearage reaches zero. How long that takes depends on your own payment gap.

What happens if I miss a payment on an arrears forgiveness plan? You typically lose that month’s forgiveness credit, and repeated missed payments can remove you from the plan altogether, leaving the original balance due again. Contact your utility or program administrator as soon as you know you might miss a payment.

When should I apply for a payment plan if my state has a winter moratorium? Before the moratorium starts, not after a disconnection notice arrives. Applying in the fall gives you time to get approved, start building a payment history, and head into winter with a plan already in place instead of an unresolved balance.