Service Line NPAs: Unlocking Savings and Driving Electrification

The policy brief argues that gas utilities in the U.S. spend between $3.5 billion and $7 billion annually to replace aging service lines. It proposes a service line NPA framework where utilities offer customers financial incentives to electrify and disconnect from the gas system instead of replacing the pipe. This approach aims to reduce ratepayer costs, lower emissions, and avoid stranded assets. The brief highlights Con Edison's Energy Exchange Program as a developed example and discusses design considerations such as participant incentives, utility support, and customer outreach.

• U.S. gas utilities spend an estimated $3.5 billion to $7 billion annually on service line replacements, which may represent 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 examples ranging from $5,000 to $10,000 on average, and specific cases reaching $28,000 for Con Edison and approximately $39,000 for Pacific Gas & Electric (PG&E).
• A service line NPA program is designed to provide financial incentives to customers to electrify and terminate gas service, thereby avoiding the capital cost of replacement and benefiting remaining ratepayers.
• Con Edison's Energy Exchange Program, launched in late 2024, targets 34,000 pre-1972 service lines and offers up to $10,000 in incentives for non-space heating electric appliances, avoiding an estimated $28,000 in costs per participant.
• Washington Gas Light (WGL) proposed a 'Customer Choice Pilot' in September 2024, though the document notes it lacks key features of a successful NPA, such as participant financial incentives and consistent outreach.
• Effective service line NPA programs require specific design elements, including advance notice aligned with replacement horizons, coordination with contractor networks, and regulatory mechanisms to align utility business incentives with public interest.

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} }