Austin Energy Customer Assistance Program 2026–27: Who Qualifies and How to Get the Discount
If you live in Austin and get Medicaid, SNAP, or SSI, or someone in your home does, you may already be eligible for a discount on your City of Austin utility bill. The Customer Assistance Program (CAP) cuts charges on electric, water, wastewater, and drainage. The City says CAP discounts average about $1,092 a year, depending on which City utilities you have.
Some households are enrolled automatically. Many aren't, usually because the benefit is in a different household member's name. This guide explains how to check, which papers count, and why a benefits card alone gets rejected.
Last checked October 2026. Facts come from City of Austin Utilities' Utility Bill Discounts page and the City of Austin Fiscal Year 2026 Electric Tariff. Discounts and qualifying programs are set by City Council and can change. This is general information, not legal advice.
How CAP Works in One Paragraph
The FY2026 electric tariff says CAP automatically enrolls eligible residential customers through third-party matching of benefit enrollment, and that anyone in the household who gets an approved benefit can qualify the address. You can also self-enroll by sending proof. For electric service, the tariff says CAP waives the monthly customer charge and the CAP community-benefit component, and cuts kilowatt-hour charges by 10%. Water, wastewater, and drainage discounts are added if those services come from the City.
Step 1: Check Whether You're Already Enrolled
Look at your utility bill. The City says CAP discounts show under each service as line items labeled:
"Cust Assist Program Cust Charge Discount"
"Cust Assist Prog. Credit"
"Cust Assist Program Bill Discount"
The City says you'll see three discounts under Electric, four under Water, three under Wastewater, and one under Drainage, depending on which City utilities you have.
If you see them, you're enrolled. If you don't, go to Step 2.
Step 2: See If You Qualify
Program-based eligibility. The City says you qualify if you or anyone in your household currently takes part in any of these:
All Medicaid types
SNAP (food stamps)
CHIP (Children's Health Insurance Program)
Telephone Lifeline Program
Travis County Comprehensive Energy Assistance Program (CEAP)
Medical Access Program (MAP)
Veterans Affairs Supportive Housing (VASH)
Supplemental Security Income (SSI)
Income-based eligibility. The City says you may also qualify if your household income is below 200% of the Federal Poverty Level. The City posts the income chart on its Utility Bill Discounts page. Check the year shown on the chart, and call the eligibility line if you're close to the limit.
Eligibility questions: 855-319-6630.
Step 3: Get the Right Document
This is where most applications go wrong. A Medicaid card, Lone Star card, or CHIP card won't work. The City says those cards don't show your address or current enrollment, which it needs to verify.
The City accepts one of these:
Medicaid Notice of Case Action letter from Texas Health and Human Services
SNAP Notice of Case Action letter from Texas Health and Human Services
CHIP Confirmation Enrollment Letter
Lifeline enrollment letter, or a phone bill showing Lifeline enrollment
CEAP Notice of Payment letter
MAP clinic card
VASH award letter
SSI award letter
Where to get them, according to the City:
Medicaid, SNAP, CHIP letters: Call 2-1-1, choose a language, then Option 2 for state benefits.
Lifeline: Ask your phone company for proof of enrollment.
CEAP: Your Travis County caseworker.
MAP card replacement: 512-978-8130.
VASH: Your VASH case manager.
SSI award letter: Social Security at 1-800-772-1213 (TTY 1-800-325-0778) or your local Social Security office.
Tip: If the benefit is in your adult child's or partner's name, use their letter. The City says anyone living at the service address can qualify the household, even if they're not on the utility account. The address on the letter needs to match the service address.
Step 4: Apply
Online, in English or Spanish, from the City of Austin Utilities Utility Bill Discounts page (coautilities.com).
Questions: City of Austin Customer Care at 512-494-9400 (outside Austin, toll-free 888-340-6465). The City lists hours as Monday–Friday 7 a.m.–9 p.m. and Saturday 9 a.m.–1 p.m. Central time. VRS calls are accepted.
After you apply, check your next couple of bills for the CAP line items.
What the Discounts Cover
The City lists these CAP discounts:
Electric
Electric Service Customer Charge waiver
Discount on your total electrical usage (the FY2026 tariff sets this at 10% of kWh charges)
Discount on Community Benefit Charges
Water
Water Multi-Family Program discount
Water Service Customer Charge waiver
Water Tiered Fixed Charge waiver
Water Volume Charge discount
Wastewater
Wastewater Service Customer Charge waiver
Wastewater Volume Charge discount
Drainage
50% discount on the Drainage Charge
Don't Qualify Through a Program? Apply for One
The City notes that some of the qualifying programs may fit you even if you haven't applied yet:
Medicaid or SNAP: Call 2-1-1 or apply online through Texas Health and Human Services.
CHIP: 1-877-543-7669.
Lifeline Texas: 1-866-454-8387, or download the application from the Public Utility Commission of Texas.
CEAP: Contact Travis County Health and Human Services (call 2-1-1 for the nearest office).
SSI: Make an appointment with Social Security at 1-800-772-1213.
Once you're approved for one of these, the approval letter becomes your CAP document.
What the Electric Tariff Adds
The City's FY2026 electric tariff (effective November 1, 2025) lists a few more qualifying programs for the electric discount than the utility bill discount page does. Besides the programs above, it names:
the Free & Reduced Lunch Program;
federal, state, or local housing or rental assistance vouchers; and
other government programs that use the 200% federal poverty guideline and are approved by Austin Energy.
If your household gets school lunch help or a housing voucher, ask Customer Care whether that letter can be used for your CAP enrollment.
The tariff also says CAP customers and other low-income residential customers may be eligible for:
Plus 1 bill payment assistance;
arrearage management (help with a past-due balance); and
no-cost weatherization.
One more detail from the tariff: if you qualify by income rather than through a program, Austin Energy reviews your eligibility every year. Watch your mail for a renewal request so the discount doesn't stop.
Common Mistakes
Sending a benefits card instead of a letter. The City can't accept Medicaid, Lone Star, or CHIP cards.
Sending an old letter. The City needs proof of current enrollment.
Assuming you're enrolled automatically. Automatic matching misses some households. Check your bill for the CAP line items.
Not using another household member's benefit. Anyone living at the address can qualify the household.
Address mismatch. If you moved, update your address with Texas HHS before you request the letter.
Stopping at CAP. CAP lowers future bills. It doesn't pay past-due balances. If you're behind, ask Customer Care about Plus 1 and arrearage management, and ask 2-1-1 about CEAP.
FAQ
How much does CAP save? The City says CAP discounts average about $1,092 a year, depending on your City utility services.
Can my roommate's SNAP qualify our home? The City says anyone living at the utility service address can qualify the household, even if they aren't on the account.
Why was my Lone Star card rejected? The City says the card doesn't show your address or current enrollment. Use the SNAP Notice of Case Action letter.
Is there an income-only option? Yes. The City says households with income below 200% of the Federal Poverty Level may qualify. Call 855-319-6630 with eligibility questions.
Who decides which programs qualify? The City says Austin City Council sets the qualifying programs.
Related Guides
Sources
City of Austin Utilities, Utility Bill Discounts: https://coautilities.com/wps/wcm/connect/occ/coa/util/support/customer-assistance/utility-bill-discounts
City of Austin, Fiscal Year 2026 Electric Tariff: https://austinenergy.com/-/media/project/websites/shared/pdfs/rates/tariff.pdf
City of Austin, Customer Assistance Program Overview: https://services.austintexas.gov/edims/document.cfm?id=430332
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