HBA testifies in favor of NW Natural’s proposed changes to Line Extension Allowances
HBA members and staff testified in favor of NW Natural’s proposed changes to Line Extension Allowances at the Oregon Public Utility Commission’s public hearing on Tuesday, April 16th. Line Extension Allowances, which are credits provided by electric or gas utilities to developers to offset the costs of installing utilities to the subdivision, based on the number of utility connections that will be made when new homes are built.
The Oregon Public Utility Commission has forced NW Natural to continually lower the Line Extension Allowances provided to developers over the last few years, leaving many developers concerned that without these allowances they may not be able to afford to run natural gas to new subdivisions. Climate activists have also targeted the allowances, arguing that they promote the burning of methane that harms the environment and contributes to climate change. Responding to these concerns, NW Natural has proposed a radical restructuring of their Line Extension Allowances. Under the current rules, for a developer to maximize the allowance received, the developer commits to installing a larger number of gas appliances in the homes that will be built. However, under NW Natural’s new proposal, in order to maximize the allowance received the developer would need to commit to minimizing the use of gas in the subdivision by installing electric heat pumps and other electric appliances, while still installing a gas meter for use in lower-usage appliance such as gas fireplaces, gas stoves or backup gas generators. The HBA and its members are supporting the change, recognizing the need for gas service in new subdivisions to provide for energy resiliency in the event of power outages, as well as providing for consumer choice in the type of fuel being used to heat and cool a home.
A decision from the Oregon Public Utility Commission is not expected until this fall.
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