Summary
Although natural gas prices are low, many people in the U.S. are seeing higher gas bills. This is due to the rising costs of replacing and upgrading old gas pipelines, which utilities pass on to customers.
Key Facts
- Natural gas prices are low, but utility bills for gas are high.
- Utilities like PECO are spending billions to upgrade gas pipelines and infrastructure.
- Customers end up paying for these upgrades through higher bills.
- Infrastructure upgrades are partly to improve safety after past pipeline explosions.
- Critics question spending on new pipelines as the world moves away from fossil fuels.
- Gas utilities make money by building and replacing infrastructure, not from selling gas directly.
- Spending on gas pipeline constructions increased by 50% from 2022 to 2023.
- Regulations allow utilities to recover the money spent on upgrades through customer bills.
