shows targeted electrification could save Californians more than $20 billion in gas pipeline costs by 2045 while tackling climate emissions., which is the most cost-effective way to reduce pollution from our buildings, state leaders face a pivotal choice: Keep pouring billions into new gas infrastructure that is likely to be underutilized or realign our spending with the clean energy transition.
Over the past decade, gas utilities spent more than $33 billion on gas infrastructure. Today, the “net value” of the system stands at $35 billion, which gas customers continue to pay back, plus interest, on their bills. Without intervention, the financial burden will only grow. E3 finds that California investor-owned gas utilities will more than double the cost of the system over the next two decades if business-as-usual continues:
spending about $43 billion through 2045 to replace 8,900 miles of gas distribution pipelines, representing 6-10 percent of the distribution system. Notably, this number does not include the likely significant amount gas utilities are expected to spend on gas transmission infrastructure, which customers also pay for on gas bills.
At scale, targeted electrification projects can save gas customers tons of money — hundreds of millions per year in early years, and nearly $2 billion per year by 2045. Through 2045, E3 estimates that the pool of cost-effective and technically feasible projects would impact only about 3–4 percent of current gas customers but could deliver more than $20 billion in savings from avoided gas pipeline costs.