Service Line NPAs: Unlocking Savings and Driving Electrification

This policy brief by RMI proposes a framework for service line non-pipeline alternatives (NPAs) to reduce the high costs of replacing aging gas service lines in the United States. While most NPAs focus on larger gas mains, RMI suggests that targeting the smaller lines connecting buildings to the system can save ratepayers money and accelerate electrification by providing financial incentives for customers to disconnect from the gas grid.

• US gas utilities spend an estimated $3.5 billion to $7 billion annually on replacing service lines, which RMI calculates as roughly 700,000 lines per year, or a replacement rate of approximately 1 percent. This represents up to one quarter of the total $28 billion spent on distribution systems in 2023.
• The cost to replace a single gas service line varies significantly by utility and location, with RMI citing examples ranging from $4,000 to nearly $40,000. Specifically, Con Edison estimates costs at approximately $28,000 per line, while Pacific Gas & Electric (PG&E) forecast a cost of approximately $39,000 per line for 2027.
• RMI proposes a service line NPA framework based on four design principles: enabling simple customer participation, generating benefits for non-participating ratepayers by avoiding replacement costs, providing utility incentives to align business interests with public policy, and advancing state goals for affordability and emissions reductions.
• A successful service line NPA program requires specific implementation strategies, including providing customers with advance notice (ideally more than one year) to plan for electrification, establishing a participant incentive that does not exceed the avoided cost of replacement, and determining how to handle future requests for gas service restoration.
• Con Edison's Energy Exchange Program, launched in late 2024, serves as a developed example of a service line NPA. It targets 34,000 pre-1972 service lines and offers up to $10,000 in incentives for electric upgrades, avoiding an estimated $28,000 in costs per participant.
• Washington Gas Light (WGL) proposed a 'Customer Choice Pilot' in September 2024 as part of its District SAFE Plan. RMI notes this proposal lacks several key features of a successful NPA, specifically needing a participant financial incentive and more consistent outreach.

APA

RMI (2025). Service Line NPAs: Unlocking Savings and Driving Electrification. https://rmi.org/resources/service-line-npas-unlocking-savings-and-driving-electrification/

Chicago

RMI. Service Line NPAs: Unlocking Savings and Driving Electrification. 2025. https://rmi.org/resources/service-line-npas-unlocking-savings-and-driving-electrification/.

Wikipedia

{{cite report |author=RMI |title=Service Line NPAs: Unlocking Savings and Driving Electrification |date=7 November 2025 |url=https://rmi.org/resources/service-line-npas-unlocking-savings-and-driving-electrification/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2025service, author = {{RMI}}, title = {{Service Line NPAs: Unlocking Savings and Driving Electrification}}, institution = {RMI}, year = {2025}, month = nov, url = {https://rmi.org/resources/service-line-npas-unlocking-savings-and-driving-electrification/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }