A transition away from gas and towards low or zero-emission heating will require planning and coordination to achieve the most efficient and equitable outcomes. In Massachusetts, New York, Rhode Island, California, Nevada, and the District of Columbia, local agencies and utility commissions have opened investigations into the future of gas and are working with gas utilities to determine their role in a decarbonized economy. This includes assessing whether investing in building new and repairing existing gas infrastructure makes sense.
Currently, about half of U.S. households use piped utility gas to heat their homes. As states move towards achieving their climate targets, households heating with fossil fuels will need to transition to other energy sources with lower greenhouse gas emissions. Electrification—switching from burning fossil fuels to electricity—is an essential strategy to facilitate this transition. However, states must recognize that the timing and execution of this transition is key in achieving their climate goals in a cost-effective and equitable manner.
Despite climate goals and the push towards electrification, gas utilities across the country are still building more gas infrastructure and in some states, like Massachusetts, the gas distribution system is riddled with aging, leaky pipelines that need to be replaced. Leak-prone gas infrastructure (e.g., uncoated steel, cast iron, wrought iron, among other materials) results in an abundance of gas leaks that pose risks to public safety, service reliability, and environmental health.
Despite the risks that leaky pipelines pose, does it make sense to continue investing in gas infrastructure as we transition away from fossil fuels? Gas system investments made today may be abandoned in the near future—so-called “stranded assets”—as the number of gas customers shrink dramatically over the next few decades for states to meet their long-term climate goals. However, some of today’s gas system investments in gas leak repairs and pipeline replacement may be needed to ensure that the risks posed by our gas infrastructure are minimized in the short term.
With climate targets quickly approaching, more and more local agencies and utility commissions are working closely with gas utilities and other stakeholders to determine what the future of gas utilities looks like in a decarbonized economy. As gas and other fossil fuels become less viable into future years, gas utilities’ business models must adapt to fit within a low-carbon economy by changing the type of energy they deliver or the services that they provide.
