California Enacts Law Allowing Households to Choose Between New Gas Lines or Electrification Incentives
California has passed the Home Energy Choice Act (Assembly Bill 2313), which mandates that utilities offer households scheduled for gas service line replacements the option to either receive a new gas line or accept a financial incentive to transition away from natural gas. This new law aims to provide consumers with a choice that was previously unavailable, as illustrated by the experience of Merrian Borgeson, California policy director for climate and energy at the Natural Resources Defense Council. Borgeson's home received a new gas line from Pacific Gas and Electric (PG&E) despite her plans to electrify her residence and disconnect from gas. The upgrade, costing between $20,000 and $30,000, was ultimately paid for by all gas customers over time, even though the line went unused in her case. The new legislation seeks to prevent similar situations by allowing customers to opt for an incentive to switch to all-electric equipment, such as heat pumps and induction ranges, with the incentive amount being les...