California law lets residents skip gas line upgrades for electrification funds
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In California, Pacific Gas and Electric and other utilities must now offer homeowners a financial incentive to switch from gas to electric power instead of replacing aging gas service lines.
Merrian Borgeson of Berkeley asked PG&E not to replace her gas line because she planned to fully electrify her home. The new Home Energy Choice Act (Assembly Bill 2313) formalises this option for all households scheduled for gas line replacement.
The law allows customers to receive funds, potentially worth several thousand dollars, to install electric appliances like heat pumps and induction stoves. Natural Resources Defense Council estimates that PG&E customers could save $20 million if the utility incentivised 1,000 households with $17,500 each, rather than replacing gas lines. PG&E typically spends $20,000 to $30,000 to upgrade a gas service line, with costs shared by all gas customers over 50 years.
California’s Public Utilities Commission will establish specific incentive amounts, prioritising larger payments for customers in disadvantaged communities. Several other states, including Illinois, Maryland, Minnesota, Oregon, and Washington, are considering similar legislation.
