TL;DR
Get backup power and energy gear delivered free with Prime
- Fast, free delivery on millions of items
- Prime Video, Amazon Music and more included
- Member-only deals all year
California’s Home Energy Choice Act will require utilities to offer households facing gas service line replacement a choice: a new line or financial support to electrify. The program is capped at 1% of each utility’s customers, expires in 2035 unless renewed, and still needs detailed rules from state regulators.
California has enacted the Home Energy Choice Act, requiring utilities to offer households scheduled for a gas service line replacement a choice between a new line and a financial incentive to electrify. The law, Assembly Bill 2313, could help customers avoid paying for gas infrastructure they no longer need while reducing replacement costs shared by gas customers.
The law applies when a utility plans to replace the pipe connecting a home to the gas distribution system. Instead of automatically installing a new line, the utility must offer the household an incentive to switch to electric appliances, potentially including a heat pump, induction range or heat-pump water heater. The payment is intended to be lower than the cost of replacing the line, with the difference potentially benefiting gas customers collectively.
The Natural Resources Defense Council estimates that PG&E customers could save $20 million in total if the utility paid 1,000 households $17,500 each to electrify rather than replacing their service lines. That is an estimate, not a statewide forecast. PG&E replaces about 15,000 service lines annually, according to the report, but the law’s cap means the program will reach only a limited share of customers.
California regulators must still establish the detailed framework, including incentive levels. The law calls for larger incentives for customers in disadvantaged communities. Utilities’ proposed programs must be approved by January 1, 2028. The programs are capped at 1% of each utility’s customers and the law is set to expire on January 1, 2035, unless renewed.
Who Pays for the Next Gas Line
The choice changes how utilities approach an expensive repair when a household is already moving away from gas. A service line replacement can cost $20,000 to $30,000 in PG&E’s area, plus interest and ongoing operating and maintenance expenses, according to the report. Those costs are recovered from gas customers over time, including households that may not use the new pipe.
Offering money to electrify could avoid some replacement spending and help California advance its carbon-neutrality goal for 2045. The savings are not guaranteed for every customer or program: the regulator’s framework and each utility’s approved plan will determine incentive amounts and eligibility. The limited customer cap also means the policy will initially cover only a small portion of utility customers.
The law raises a broader cost question as households leave the gas system: if fewer customers pay into it, the remaining customers may face a larger share of system expenses. Utilities San Diego Gas & Electric and SoCalGas opposed the bill, arguing it could create an unfair cost shift. Supporters counter that the incentive applies when replacing a line would itself impose costs on all gas customers.
As an affiliate, we earn on qualifying purchases.
From Berkeley Repair to State Policy
The law followed cases in which utilities replaced service lines even when residents expected to stop using gas. Merrian Borgeson, California policy director for climate and energy at the Natural Resources Defense Council, said PG&E replaced her aging line in Berkeley while she was preparing to replace her home’s last gas appliance with an induction stove. She said she later requested that the line be shut off, leaving a new pipe unused.
“Now, I have no gas in my house,” Borgeson said. “But the customers all around me are paying for that pipeline for the next 50 years.” She advocated for AB 2313. Assemblymember Marc Berman, the bill’s author, said in an email that the law gives Californians a chance to choose what powers their homes and provides financial support if they decide to leave natural gas.
California is the third jurisdiction to authorize this kind of alternative to replacing gas pipelines and the first to do so statewide, according to the report. New York utility Con Edison began its Energy Exchange Program in 2024, offering eligible households up to $20,000 to electrify. Colorado’s Public Utilities Commission authorized Xcel Energy to create a similar program in July, with a launch expected within months, according to Kiki Velez of the Natural Resources Defense Council.
““It’s this huge signal of where the state is headed.””
— Merrian Borgeson
As an affiliate, we earn on qualifying purchases.
Incentives and Notice Still Pending
The state has not yet set the incentive amounts, eligibility details or full program rules. The Public Utilities Commission is expected to define those details, including larger payments for residents in disadvantaged communities. Until the framework and utility plans are approved, households cannot know what support will be available to them.
It is also unclear how much advance notice residents will receive before a utility plans to replace their line. Borgeson said she was concerned customers might learn about the incentive only at the last minute. RMI recommends notifying residents one to five years ahead, around the time replacement is scheduled; that recommendation is not a requirement specified in the report.
The total savings and effects on remaining gas customers are also uncertain. The NRDC’s $20 million figure is an estimate based on 1,000 PG&E customers receiving $17,500 each. It does not establish actual savings across California, and the law’s cap limits participation.
As an affiliate, we earn on qualifying purchases.
Regulators Set the Program Rules
The California Public Utilities Commission is the next key step: it must establish the framework utilities will use, including incentive levels and rules for serving disadvantaged communities. Utilities then need their individual programs approved by January 1, 2028.
Residents will need clear, timely notice of planned replacements to compare the incentive with the cost and practical requirements of switching appliances. The law is scheduled to expire on January 1, 2035, though lawmakers could renew it before then. The report also said advocates were discussing similar proposals in Illinois, Maryland, Minnesota, Oregon and Washington.
As an affiliate, we earn on qualifying purchases.
Key Questions
What choice does California’s new law give households?
When a utility schedules a gas service line replacement, it must offer the household a choice between a new line and a financial incentive to electrify. The program details and payment amounts still need to be set.
How much money could a household receive?
The law’s final incentive levels have not yet been determined. The NRDC used $17,500 per household in an estimate of potential PG&E customer savings; that figure is not a confirmed payment amount for every participant.
When will the programs be available?
The California Public Utilities Commission must develop the framework, and utilities must have their proposed programs approved by January 1, 2028. The report does not give a specific launch date for customer offers.
How many customers can take part?
Programs are capped at 1% of each utility’s customers. The law is set to expire on January 1, 2035, unless renewed.
Why did some utilities oppose the law?
San Diego Gas & Electric and SoCalGas argued that customers who leave gas service could shift system costs onto those who remain. Supporters say the incentive is offered when leaving can avoid the expense of replacing a line.
Source: rss
Halloween Picks
halloween
As an affiliate, we earn on qualifying purchases.
