Analyzing the Gas System: A Framework to Reduce Consumer Costs and Risks
Summary
The report highlights a trend of massive infrastructure spending by both electric and gas utilities in the U.S., which is driving up consumer energy bills. While the electric sector has a 'full toolbox' of regulatory and technical solutions to manage costs, the author contends that gas utility solutions are 'more nascent and uncharted.' The document proposes the use of a gas system analysis (GSA) to provide the foundational technical information necessary for decision-makers to avoid investing in redundant or irrelevant long-lived assets.
Key insights
- U.S. energy utilities are engaging in significant infrastructure spending: investor-owned electric utilities are projected to spend $207.9 billion in 2025, with over $1.1 trillion planned through 2030, while gas utilities may spend more than $1.4 trillion by 2050 for system expansion and pipeline replacement.
- Rising utility rates are increasing the financial burden on consumers, with an analysis estimating that at least 210 U.S. gas and electric utilities have proposed or implemented rate hikes that will increase bills by $71.2 billion for electricity and $18.7 billion for gas by 2028.
- Evaluating gas utility investments is more difficult than evaluating electric utilities because gas infrastructure is largely invisible, some utilities are not required to provide detailed system information, and decision-makers may lack the necessary technical expertise.
- A gas system analysis (GSA) is proposed as an essential tool to provide regulators and stakeholders with the data on distribution, transmission, and storage systems needed to make informed decisions and avoid 'expensive long-lived assets that may be redundant or irrelevant'.
Cite the original document
- APA
- Brown, L. (2025). Analyzing the Gas System: A Framework to Reduce Consumer Costs and Risks. Energy Innovation. https://energyinnovation.org/report/analyzing-the-gas-system-a-framework-to-reduce-consumer-costs-and-risks/
- Chicago
- Brown, Lydia. Analyzing the Gas System: A Framework to Reduce Consumer Costs and Risks. Energy Innovation, 2025. https://energyinnovation.org/report/analyzing-the-gas-system-a-framework-to-reduce-consumer-costs-and-risks/.
- Wikipedia
- {{cite report |last1=Brown |first1=Lydia |title=Analyzing the Gas System: A Framework to Reduce Consumer Costs and Risks |publisher=Energy Innovation |date=8 December 2025 |url=https://energyinnovation.org/report/analyzing-the-gas-system-a-framework-to-reduce-consumer-costs-and-risks/ |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{brown2025analyzing, author = {Brown, Lydia}, title = {{Analyzing the Gas System: A Framework to Reduce Consumer Costs and Risks}}, institution = {Energy Innovation}, year = {2025}, month = dec, url = {https://energyinnovation.org/report/analyzing-the-gas-system-a-framework-to-reduce-consumer-costs-and-risks/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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