The Massachusetts Department of Public Utilities has implemented a new policy to end subsidies for gas utility lines in newly built homes and buildings, aiming to curb natural gas use. Under this policy, those wanting gas heat must pay the full connection cost, about $9,000 per home. Previously, the cost was distributed to existing customers via small monthly surcharges.
This policy shift supports the state’s plan to transition residents from gas and achieve net-zero carbon emissions by mid-century. Climate advocates believe this change is crucial for reducing reliance on gas and saving customers money. The new policy order is part of Massachusetts’ decarbonization strategy.
Environmental organizations’ analysis showed existing gas customers paid $160 million in 2023 for new connections, highlighting the financial burden of expanding gas networks. Six states have similar policies, and others, including Massachusetts and the District of Columbia, are considering such measures according to Kristin George Bagdanov of the Building Decarbonization Coalition.
The order allows utilities to charge ratepayers for new gas line installations only if no alternatives exist. Eversource, a major utility, is currently assessing the order’s implications. The Greater Boston Real Estate Board opposed the draft, arguing it raises costs for developers of low-income housing projects.
By 2024, the department states, new construction costs in Massachusetts will show little difference between gas and all-electric systems. The policy seeks to address electrification barriers without perpetuating gas infrastructure growth. Gas utilities have until September 7 to propose revisions to the order.
Original Story at insideclimatenews.org