California has passed the Home Energy Choice Act (AB 2313), which requires utilities to offer households a choice when an aging gas service line needs replacement: accept a new line, or take a cash incentive to go all-electric. The option comes after PG&E replaced a Berkeley homeowner's line even though she was already electrifying and had no need for gas; the utility said it couldn't wait, and the cost, typically $20,000 to $30,000, becomes part of all gas customers' rates over the infrastructure's life.
Under the new law, the electrification incentive will be less than the utility's cost to replace the line, so customers who remain on gas benefit from the difference. Merrian Borgeson, California policy director for climate and energy at the Natural Resources Defense Council, says the law sends a clear message that California is no longer going to invest millions of dollars in gas infrastructure without considering the future.
NRDC calculates that PG&E's gas customers could save $20 million if 1,000 households each took a $17,500 incentive rather than having their service lines replaced. PG&E replaces about 15,000 service lines annually, so the new option has substantial room to grow—and marks a concrete shift in how the state handles its existing gas system.