California and Massachusetts plan for gas network decline
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Gas utilities in California and Massachusetts are beginning to plan for the eventual retirement of gas networks as more customers switch to electric power.
California’s SB 1221 process allows utilities to compare the cost of repairing gas systems to the cost of switching customers to zero-emission alternatives in 151 designated neighbourhoods. The state will approve up to 30 pilot projects without requiring unanimous agreement from all property owners, with initial applications due in April 2027.
Massachusetts’ National Grid is also testing a similar approach by proposing to convert 118 customers in Winthrop and Leominster to electric heating equipment, allowing the company to remove aging gas pipes. This coordinated approach is necessary because savings from retiring gas infrastructure only appear when enough customers on a single system switch to electricity. These programmes acknowledge that simply forecasting declining gas demand is not enough.
Regulators are now focusing on which gas pipes should continue to receive investment, considering factors like affordability, disruption, and local priorities. The process also requires evaluating the impact on the electric grid and ensuring that customers do not face higher costs or difficult building upgrades during the transition.
