Eliminating Line Extension Allowances
Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. LEAs essentially subsidize the expansion of the gas system and new gas hookups, so many states are now examining how LEAs may conflict with their policies to reduce greenhouse gases, phase out natural gas use, and electrify and decarbonize buildings. States are reforming or eliminating their line extension allowances to better align with their climate policies and increasing consumer demand for electric alternatives to gas.
Eliminating LEAs does not prohibit new gas connections or eliminate consumer choice; owners and developers of new buildings are still able to connect their building to a gas distribution pipeline, consistent with state and local regulations, but they are directly responsible for those costs. Research estimates that reforming or ending LEAs can save ratepayers millions of dollars per year, based on the pace and cost of new gas system connections, and how generous the allowances are. Early results in states that have eliminated their LEAs also indicate that this reform has led to more development without gas, rather than shifting the cost of gas connections to new customers.
States can reform or eliminate LEAs through regulatory, executive, or legislative action. In some states, LEAs have been eliminated across all gas utilities through legislation or an order issued by the utility regulator. This reform can also be initiated by a petition from an Attorney General or similar office, or an Executive Order. In other states, utility regulators have approached LEAs individually by each gas utility, typically through ratemaking proceedings.
Key Resources
The End of Gas System Subsidies: Why Gas Line Extension Allowances No Longer Serve Us
Cutting These Subsidies Could Save States Millions of Dollars
Ending Subsidies for New Gas Hook-Ups Can Save Cascadians Millions
Overextended: It's Time to Rethink Subsidized Gas Line Extensions
Model States
California
Effective July 1, 2027, California will end line extension allowances for new mixed-fuel building projects (buildings that use natural gas and/or propane in addition to electricity). Mixed-use buildings will have until June 30, 2027 to energize and claim electric line extension subsidies, and projects in the design review approval process prior to July 1, 2024 will remain eligible for electric line extension subsidies as long as they meet the energization deadline.
Colorado
Gas utilities may not provide incentives, including a line extention allowance, to establish gas service to a property.
New York
Legislation repealed the state’s “100-foot rule” that required existing utility customers to subsidize new residential gas hookups within 100 feet of an existing pipeline. With the repeal, effective April 2027, applicants must pay the cost for new gas service, rather than existing ratepayers.
Eliminating Line Extension Allowances By State
| Status | State Sort descending | Region | Components | Year Enacted | |
|---|---|---|---|---|---|
| Not Enacted |
Empty column
Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service. Empty column
|
Southeast | |||
| Not Enacted |
Empty column
Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service. Empty column
|
West | |||
| Not Enacted |
Empty column
Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service. Empty column
|
Southwest | |||
| Not Enacted |
Empty column
Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service. Empty column
|
Southeast | |||
| Enacted |
Empty column
Effective July 1, 2027, California will end line extension allowances for new mixed-fuel building projects (buildings that use natural gas and/or propane in addition to electricity). Mixed-use buildings will have until June 30, 2027 to energize and claim electric line extension subsidies, and projects in the design review approval process prior to July 1, 2024 will remain eligible for electric line extension subsidies as long as they meet the energization deadline. Establishing Policies
Empty column
|
West | 2025 | ||
| Enacted |
Empty column
Gas utilities may not provide incentives, including a line extention allowance, to establish gas service to a property. Establishing Policies
Empty column
|
West | 2023 | ||
| Not Enacted |
Empty column
Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service. Empty column
|
Northeast | |||
| Not Enacted |
Empty column
Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service. Empty column
|
Southeast | |||
| Not Enacted |
Empty column
Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service. Empty column
|
Southeast | |||
| Not Enacted |
Empty column
Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service. Empty column
|
Southeast | |||
| Not Enacted |
Empty column
Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service. Empty column
|
West | |||
| Not Enacted |
Empty column
Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service. Empty column
|
West | |||
| Not Enacted |
Empty column
Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service. Empty column
|
Midwest | |||
| Not Enacted |
Empty column
Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service. Empty column
|
Midwest | |||
| Not Enacted |
Empty column
Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service. Empty column
|
Midwest | |||
| Not Enacted |
Empty column
Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service. Empty column
|
Midwest | |||
| Not Enacted |
Empty column
Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service. Empty column
|
Southeast | |||
| Not Enacted |
Empty column
Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service. Empty column
|
Southeast | |||
| Not Enacted |
Empty column
Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service. Empty column
|
Northeast | |||
| In-Progress |
Empty column
Per a Maryland Public Service Commission (PSC) order, PSC staff were required to propose regulations to eliminate line extension subsidies for new natural gas service connection by December 1, 2025. If adopted, customers may still choose their preferred fuel, but must pay the full cost of connecting to the gas system, rather than the cost being covered by all ratepayers. In May 2026, the PSC delayed approving or rejecting draft regulations to end gas line extension allowances in a rulemaking hearing, to further study the policy's impacts and asked PSC staff to identify alternative options to ending LEAs, without a clear timeline of when the regulations may be finalized. Establishing Policies
Empty column
|
Southeast | 2026 | ||
| In-Progress |
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In 2025, the Department of Public Utilities (DPU) issued an order that proposed ending line extension allowances, requiring new gas customers to pay for upfront connection costs instead of existing ratepayers, unless there are no viable alternatives to natural gas. Per the order, gas utilities proposed revisions to tariffs that reflect the removal of LEAs, and compliance with the DPU order will be finalized in each utility’s Climate Compliance Plan docket (DPU Dockets 25-40 through 25-45). Establishing Policies
Empty column
|
Northeast | 2025 | ||
| Not Enacted |
Empty column
Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service. Empty column
|
Midwest | |||
| Not Enacted |
Empty column
The Public Utilities Commission solicited public comments on whether it should modify existing gas line extension allowances. A PUC order in response is expected. Establishing Policies
Empty column
|
Midwest | |||
| Not Enacted |
Empty column
Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service. Empty column
|
Southeast | |||
| Not Enacted |
Empty column
Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service. Empty column
|
Midwest | |||
| Not Enacted |
Empty column
Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service. Empty column
|
West | |||
| Not Enacted |
Empty column
Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service. Empty column
|
Midwest | |||
| Not Enacted |
Empty column
Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service. Empty column
|
West | |||
| Not Enacted |
Empty column
Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service. Empty column
|
Northeast | |||
| Not Enacted |
Empty column
Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service. Empty column
|
Northeast | |||
| Not Enacted |
Empty column
Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service. Empty column
|
Southwest | |||
| Enacted |
Empty column
Legislation repealed the state’s “100-foot rule” that required existing utility customers to subsidize new residential gas hookups within 100 feet of an existing pipeline. With the repeal, effective April 2027, applicants must pay the cost for new gas service, rather than existing ratepayers. Establishing Policies
Empty column
|
Northeast | 2026 | ||
| Not Enacted |
Empty column
Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service. Empty column
|
Southeast | |||
| Not Enacted |
Empty column
Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service. Empty column
|
Midwest | |||
| Not Enacted |
Empty column
Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service. Empty column
|
Midwest | |||
| Not Enacted |
Empty column
Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service. Empty column
|
Southwest | |||
| In-Progress |
Empty column
The Oregon Public Utilities Commission ordered the state’s two largest gas utilities to phase out natural gas subsidies for new customers by 2027. The orders require Avista to eliminate their line extension allowances by January 2027, and Northwest Natural to eliminate their LEAs by November 2027. Establishing Policies
Empty column
|
West | 2024 | ||
| Not Enacted |
Empty column
Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service. Empty column
|
Northeast | |||
| Not Enacted |
Empty column
Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service. Empty column
|
Northeast | |||
| Not Enacted |
Empty column
Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service. Empty column
|
Southeast | |||
| Not Enacted |
Empty column
Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service. Empty column
|
Midwest | |||
| Not Enacted |
Empty column
Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service. Empty column
|
Southeast | |||
| Not Enacted |
Empty column
Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service. Empty column
|
Southwest | |||
| Not Enacted |
Empty column
Utah has not had any gas line extension allowance (LEA) reform, but the largest utility in the state does not provide a gas LEA. Empty column
|
West | |||
| Not Enacted |
Empty column
Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service. Empty column
|
Northeast | |||
| Not Enacted |
Empty column
Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service. Empty column
|
Southeast | |||
| In-Progress |
Empty column
In individual utilty rate cases, Washington State regulators adopted a plan to phase out line extension allowances (LEAs) for three of its four gas utilities: Avista and Puget Sound Energy were required to eliminate gas LEAs by January 1, 2025; Cascade will eliminate gas LEAs for residential and commercial customers by March 1, 2027. Establishing Policies
Empty column
|
West | 2025 | ||
| Not Enacted |
Empty column
Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service. Empty column
|
Southeast | |||
| Not Enacted |
Empty column
Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service. Empty column
|
Midwest | |||
| Not Enacted |
Empty column
Gas line extension allowances (LEAs) are policies that enable new customers to connect to the natural gas system, with some or all of the costs paid for by existing gas ratepayers. Eliminating line extension allowances results in new customers directly paying for the costs to install their new gas service. Empty column
|
West |