QB Issue Resolution:

in the chart of accounts, create a current asset account called pre-paid utility

make your payment and use that account as the expense for the payment

when you want to apply that pre-payment to a bill
enter the bill, and the utility expense account and amount
on the next line select the pre-paid account and enter the amount as a negative amount, save

Resolution for Issue 'how do I record and allocate prepayments to a utility' available: Yes (Solved).
Source: Intuit Community forum.

how do I record and allocate prepayments to a utility: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

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