**MUST READ!***
NO GAS ALLOWANCES: As part of Massachusetts’s push to meet its climate targets, the state’s utilities regulator says new gas customers may soon need to pay the full hookup cost – no more spreading the expense to existing customers. Bhaamati Borkhetaria has more.
excerpt:
The new policy, if enacted, would start after the DPU issues final decisions on the gas companies’ climate compliance plans, the timeline of which is not clear as the agency doesn’t have a statutory deadline. DPU proposed an earlier version of this change in February that included more circumstances in which a utility could claim an “exception” to continue offering line extension allowances. The updated proposal narrows those circumstances, permitting allowances only when no “technically feasible” alternative exists.
Across the US, states are reassessing gas utility line extension policies amid climate and energy affordability concerns. California and Colorado have started to eliminate the practice. New York passed a bill this summer aiming to phase out line extension allowances. Overall, 12 states plus Washington, D.C. have either removed these policies or are actively reviewing them for reform, according to the Building Decarbonization Coalition, a national group that works on promoting fossil-fuel free buildings.
The DPU made this decision after stakeholders like the Department of Energy Resources, the attorney general, the Sierra Club Environmental Law Program, and Conservation Law Foundation shared public comment letters and testimony to the agency that eliminating line extension allowances would change the equation for developers when considering whether to add gas or electrification and decarbonized energy in new buildings.
DPU also considered a 2022 study by Rocky Mountain Institute (RMI), a nonprofit advancing clean energy solutions, which concluded that electrification of new buildings is the cheaper option for customers and developers. According to RMI, the line extension allowances distort the true costs of the system by making it easier for developers to hook up to the gas system.
Eversource and National Grid, the two biggest gas utility companies in the state, said that they are both “reviewing” the new DPU order on line extension allowances.
“There is no legal authority for the DPU to prevent customers from taking gas service, where it is economic for the gas utilities to serve those customers, and as a result, we need to closely evaluate the issues that this could raise,” said William Hinkle, a spokesperson for Eversource, in an emailed statement. “Access to safe, reliable energy service is imperative to the health, well-being, and economic success of people and businesses alike, and customer choice is paramount to realizing an affordable energy transition.”
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