Natural Gas Phaseout Investigated in Massachusetts

 In Industry Highlights
natural gas phaseout

It seems more and more states are considering a natural gas phaseout.  First it was California, then it was New York, and now Massachusetts is looking to follow suit.  In June 2020, the State Attorney General asked the Massachusetts DPU to analyze the timing and feasibility of sunsetting natural gas generation throughout the state.

Impetus for a Natural Gas Phaseout in Massachusetts

The state has a very compelling, 2-pronged reason for why a natural gas phaseout makes sense. 

First, the state is legally-obligated to achieve net-zero emissions by 2050.  That is a pretty aggressive goal, especially considering it’s only 30 years away.  Second, the process of heating buildings releases the second-largest amount of greenhouse gases in the state, and natural gas meets nearly 66% of these heating requirements.

Maura Healey, the state AG, has proposed a 2-phase evaluation.  First, the state’s gas companies, including National Grid, Eversource and Berkshire Gas, must each develop a comprehensive financial analysis and plan for contributing to the phaseout.  Second, state officials would be required to develop policies necessary to meet the net-zero goal while also protecting current gas customers during the transition.

Healey’s proposal must ultimately be approved by the DPU in order to move forward – there is no deadline for the DPU to respond, but experts believe it will eventually be approved. 

Ultimately, the gas industry in Massachusetts does not want to become obsolete, so I have mixed feelings about the state’s clean energy goals.  That said, the state’s natural gas infrastructure needs work – about 25% of the gas mains in the state are over 80 years old, which means that they will likely experience more ruptures leading to service outages in the future. 

Therefore, no matter what happens with the proposed natural gas phaseout, gas utilities should prepare now to expend additional resources to focus on restoration and recovery efforts in the years to come.

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