California Approved a Gas Pipeline Solution. Now Comes the Hard Part.
Source: Opinion by Jalal Awan at The Utility Reform Network
State utilities are spending billions of dollars every year to maintain and upgrade California’s natural gas distribution system just as we’re trying to wean ourselves off of this fossil fuel energy source that contributes to climate change. One possible solution emerged from the state legislature and received Gov. Gavin Newsom’s blessing when he signed Senate Bill 1221 into law in September 2024. The bill directs utilities to create “decarbonization zones” — designated neighborhoods where aging gas pipelines would be retired and residents helped to switch to electric appliances like heat pumps and induction stoves, funded by the savings from avoided pipeline replacements. The California Public Utilities Commission faces a monumental task in implementing this promising idea, but early evidence reveals how difficult it can be for regulators to uphold ratepayers’ interests when utilities control the data and have their own financial priorities.
