This thesis examines the option of privatizing electricity and gas utilities, requiring residents of Navy Family Housing (NFH) to pay for all consumption. To assist in the payment, an Utility Housing Allowance (UHA) would be provided to residents based on the average consumption of local Private Sector Housing (PSH) residents. The goal of this thesis is to determine if implementing an UHA would reduce the overall energy consumption in NFH. Specifically, it determines the historical usage of electricity and gas in the Naval Postgraduate School's La Mesa housing village (LMV) area and the local PSH areas. It then develops forecasting models for both areas to predict the future consumption of utilities, sets a baseline consumption rate for LMV residents, and identifies the savings that would be generated from implementing the UHA program. After validating the forecasting models and comparing costs under the UHA concept, this study concludes that the UHA concept would save approximately $268,300 annually at LMV alone. Additionally, in meeting the Navy's Year 2005 goal of reducing energy consumption by 30% per square foot, by implementing an UHA concept, the projected savings in LMV alone are approximately 50% per square foot/month. Although the study focuses on LMV, it is assumed that similar energy inefficiencies are being demonstrated in other NFH areas. Therefore, this study provides the necessary steps to conduct comparative analysis in other NFH areas.