More U.S. households are failing to meet their utility bills on time and the number of homes seeking public assistance is growing. This was according to groups that arrange for help. Concern over a record number of families will face housing utility shutoffs in coming months is increasing. This is still an evidence of the fallout from a distressed housing market and inflation.

"The underlying problem is many families are becoming poorer and have to pick which bills to pay," said Mark Wolfe, executive director of the National Energy Assistance Directors' Association, a group that represents state directors of energy-assistance programs. In some states, attempts to buy some time by delaying the date at which utilities are allowed to begin disconnections are done. Cutting off utility is prohibited during the winter because the effects could be life-threatening.

A preliminary survey by the National Energy Assistance Directors' Association found that the number of families receiving federal energy-assistance funds is the largest in 16 years. For the 2008 federal fiscal year, it topped 5.8 million, a 3.8% increase over fiscal-year 2007.

Some states have seen double-digit increases in the number of families receiving public assistance to pay their utility and fuel bills. The increases go as high as 80% in Nevada and 44% in Oklahoma. States control how they dole out their share of the $2.5 billion in federal funds distributed under the Low Income Home Energy Assistance Program.

Many states are asking Congress to give increases in the funds for energy assistance as the troubled homes also increase.