""We had thousand-dollar bills this past winter," Lordi said outside her home recently, as construction crews replaced old gas lines in her neighborhood. Her bill combines gas and electric, but during the winter heating season, that's mostly gas. Now Lordi is making the connection between her higher gas bill and the nearby construction. "It looks like they are tearing every single bit of infrastructure up here," Lordi says."
"Because it's a monopoly utility, regulators will pass those costs on to ratepayers. This construction and Lordi's higher bill are part of a trend across the United States. Even though natural gas prices are relatively low now, residential gas utility rates are nearing record highs. That's because customers are paying more for infrastructure, construction, utility costs and taxes than they are for the actual fuel."
Residents in neighborhoods undergoing pipeline replacement are experiencing large winter gas bills. Utilities are investing billions over multi-year programs to upgrade gas pipelines and related infrastructure, with regulators allowing those costs to be recovered from ratepayers. Residential utility rates are rising toward record highs because customers now pay more for infrastructure, construction, utility costs and taxes than for actual fuel. The upgrades aim to improve pipeline safety after a deadly 2010 explosion. Climate scientists call for a transition away from fossil fuels, prompting regulators in some states to require cheaper safety alternatives or targeted network shutdowns. Nationwide gas construction spending rose sharply, increasing 50% from 2022 to 2023 to $49.1 billion.
Read at www.npr.org
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