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Homeowners Say Local Pipeline Upgrades Are Driving Soaring Utility Bills

Homeowners nationwide are blaming local construction and pipeline replacement projects for sharp increases in utility bills. In Wyncote, Pennsylvania, one resident reported "thousand-dollar" gas and electric bills as PECO spends about $1.8 billion over five years on pipeline upgrades that regulators allow utilities to recover from customers. Experts warn that the financing model for utilities can incentivize more construction, while methane leaks and burning worsen climate and health risks. Some states, like California with AB 825, are acting to limit costs and pollution, and switching to efficient electric systems such as heat pumps can help households lower bills and emissions.

Homeowners Say Local Pipeline Upgrades Are Driving Soaring Utility Bills

Homeowners link roadwork and pipeline projects to higher bills

Across the United States, residents are seeing their utility bills climb and are increasingly connecting those increases to extensive construction and pipeline replacement work on neighborhood streets.

"It looks like they are tearing every single bit of infrastructure up here," said Wyncote, Pennsylvania resident Michelle Lordi, who told NPR she has seen both her gas and electric bills reach "thousand-dollar" levels.

Why bills are rising

Local utility PECO is spending roughly $1.8 billion over five years to replace gas pipelines, and state regulators currently allow utilities to recover many of those costs directly from ratepayers. That means even when wholesale natural gas prices are relatively low, customers can face record-high residential bills because they are paying for construction, higher utility fees and taxes tied to infrastructure upgrades.

Experts note that the way utilities are financed — which often allows companies to earn returns on construction investments — can create incentives to build more infrastructure. While upgrades can improve safety and reliability in the short term, critics warn of longer-term consequences for household budgets and the climate.

Environmental and health concerns

Methane, the primary component of natural gas, is a potent greenhouse gas that traps heat far more effectively than carbon dioxide. According to the Environmental Defense Fund, methane emissions from leaks and burning contribute significantly to global warming and are linked to outdoor and indoor air pollution that can harm public health.

Despite these risks, fossil fuels still account for a large share of U.S. energy: the U.S. Energy Information Administration reports that roughly 79% of the nation's energy consumption in 2021 came from gas, oil and coal.

Policy responses and options for households

Some states are beginning to push back on costly pipeline expansion. For example, California enacted AB 825 to create a framework intended to stabilize gas markets, reduce pollution and support a shift toward cleaner electricity — a policy that state officials say could save residents up to $10 billion over the next decade.

At the household level, families can reduce exposure to pipeline-related costs and emissions by switching to efficient electric technologies. Heat pumps, which both heat and cool homes without burning fossil fuels, have outsold gas furnaces each year since 2021. Even as some federal incentives phase down, falling equipment costs and improved performance are expected to keep adoption rising.

Heating and cooling often account for nearly half of a household's energy costs, so moving to more efficient electric systems can lower bills and reduce pollution. Homeowners considering a switch should research local rebates, compare system efficiencies, and consult licensed installers for estimates tailored to their homes.

Sources: NPR, PECO, U.S. Energy Information Administration, Environmental Defense Fund.

Homeowners Say Local Pipeline Upgrades Are Driving Soaring Utility Bills - CRBC News