Rethinking Natural Gas Infrastructure: How Non‐Pipe Alternatives are Shaping Utility Planning

Abstract

As greenhouse gas (GHG) emission reduction efforts accelerate, utility regulators nationwide are rethinking the role of natural gas in reducing GHG emissions over current levels. A key strategy emerging in several states is the mandatory consideration of non‐pipe alternatives (NPAs); solutions that avoid the need for new natural gas hook‐ups. California, Massachusetts, New York, and Colorado are leading the effort, and other states like Maryland, Hawaii, Oregon, Minnesota, and New Jersey are not far behind. Before gaining approval for traditional new pipeline investments as opposed to pipeline replacement, regulators are requiring utilities to thoroughly analyze the costs and benefits of NPAs. This is compelling natural gas utilities to rethink their business models and find the most effective ways to present NPAs to regulators and customers. With this enhanced scrutiny and regulatory mandates that are increasingly focusing on sustainability, natural gas distribution utilities are at a crossroads. The challenge lies in adapting to these expectations and innovating scalable investments that will meet regulatory demands while driving the transition to a cleaner energy future.