Gas utilities defend Mass. pipeline extensions as state probes fuel’s future

Gas utilities defend Mass. pipeline extensions as state probes fuel’s future

Policies that govern how new and existing gas utility customers share the cost of pipeline extensions remain an important part of the regulatory framework in Massachusetts, companies told state regulators overseeing a so-called Future of Gas proceeding.

The line extension policies — and customer growth more broadly — are not inconsistent with current state climate policy, the companies said. The gas distributors stressed that they have already taken steps to limit new hookups and will soon launch a new process to consider alternatives to pipeline projects, including line extensions.

The filings stem from a Massachusetts Department of Public Utilities (DPU) June 14 request for data about the companies’ line extension policies (Docket 20-80). Those policies spread the cost of extending infrastructure to new customers across the existing ratepayer base. In its request, the DPU sought to understand whether incentivizing system growth is consistent with the state’s climate policy.

Massachusetts has established emission limits for building heating and gas distribution that require gas utilities to decarbonize their business. Meanwhile, the state’s gas utilities grew their combined customer count by an average of 14,565 meters per year from 2019-2022, according to American Gas Association analysis of the most recent US government data.

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By Tom DiChristopher