Utility customers across the United States could save $2 to $7 billion annually if policymakers act now to reform gas line extension allowances (LEAs), which are subsidies that cover some or all of the costs associated with connecting a new building to the gas system. In the past three years, LEAs have been reformed or removed completely in six states, while six more and D.C. are considering removing them.
This policy brief offers an overview of the current LEA landscape in the U.S. and recommendations for reforming outdated policies that promote the growth of gas consumption and emissions. Several states and utilities are in the process of addressing LEAs, and the landscape remains pixelated by the varied reform strategies, which include single-utility rate cases, statewide regulatory proceedings, and statewide laws. This brief discusses the benefits and risks of these different venues for reform and offers an overview of where existing gas subsidies remain in place in order to direct future reform efforts.
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