Every year, California’s gas utilities spend more than $4 billion to maintain the gas pipeline system, and these costs are only growing. But at the same time, households across the state are already transitioning to clean, all-electric appliances to meet state climate goals.
Without intervention to align utility spending with our clean energy future, Californians may face disastrous consequences. By 2050, remaining gas customers could experience gas rates that are ten or more times higher than today’s as they pay off an oversized and underused fossil fuel pipeline network.
In a new white paper, Energy + Environmental Economics (E3) lays out a plan for state regulators to tackle this crisis.
The Ball is in Regulators’ Court
State regulators at the California Public Utilities Commission need to act now to secure a managed gas transition. With their newly re-vamped Long-Term Gas Planning Rulemaking, the Commission has the perfect opportunity to get this done.
As shown below, E3’s white paper lays out five critical actions that states should take to achieve an affordable gas transition. Of these, California has completed the first.
Although the state was an early leader in acknowledging this issue, other states, including Colorado and Massachusetts, have since implemented several of the strategies above to manage gas system costs. E3’s new white paper summarizes lessons-learned from these states to provide California with a clear, implementable pathway to an affordable clean energy future.
You can read the full white paper at this link.
