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Bill Summary · SB 998

SB 998 — Natural Gas — Strategic Infrastructure Development and Enhancement (Ratepayer Protection Act)

Status: Hearing scheduled 3/13 at 1:00 p.m.
Introduced: January 29, 2025

Purpose / Intent

SB 998 revises the statutory STRIDE (gas infrastructure replacement surcharge) process to shift the program’s stated purpose from simply “accelerating” infrastructure work to “promoting” gas infrastructure improvements only when necessary and appropriate to (1) ensure safety and reliability and (2) align with State climate policy. The bill adds new requirements for the content of company STRIDE plans and tightens Public Service Commission (PSC) approval criteria so that replacement projects are evaluated against alternatives and the State’s decarbonization goals.

Key provisions

  • Changes intent language for STRIDE to require promotion of infrastructure improvements “when necessary and appropriate” and consistent with state climate policy.
  • Plan content expansions — a gas company’s plan filed with the PSC must now include:
    • A description of each eligible project, including the project’s expected useful life.
    • A demonstration that projects were prioritized based on public risk and cost‑effectiveness.
    • An analysis comparing the costs of proposed replacements with alternatives, specifically including (a) leak detection and repair and (b) targeted retirement or abandonment of system segments in conjunction with electrification.
    • A plan to notify customers affected by projects at least 2 years before construction to allow customers time to pursue electrification.
    • Standard financial inputs (pretax return, depreciation, property taxes) for estimated project cost calculations.
  • Definitions added/clarified:
    • “Natural gas” defined as methane from geological formations.
    • “Natural gas alternative” defined to include biomethane, recovered methane, synthetic methane, and hydrogen.
  • PSC approval criteria extended — PSC may approve a plan only if, in addition to existing findings, it finds that the investments:
    • Are required to improve safety after considering alternatives to replacement;
    • Are consistent with the need to reduce natural gas use in light of State climate policy;
    • Are consistent with the projected availability and cost‑effectiveness of natural gas alternatives.
  • Procedural rules preserved/confirmed:
    • PSC must act on plans within 180 days (amendments within 150 days).
    • Cost‑recovery schedules approved with plans; residential surcharge caps (historically up to $2/month) and allocation rules remain part of the framework.

Who is affected

  • Gas distribution companies (must prepare more detailed and climate‑aligned plan materials).
  • PSC (additional evaluation criteria and plan review obligations).
  • Utility customers (residential and commercial) — potential impacts on bills, notification rights, and electrification opportunities.
  • Local governments and small businesses that are natural gas customers (noted as potentially meaningfully affected).
  • State government as a utility customer.

Fiscal and administrative impact

  • PSC: can implement the bill’s review requirements with existing resources (per fiscal note).
  • Ratepayers: the bill could affect cost recovery timing and project selection; exact bill impacts depend on PSC approvals and company plans. Small businesses may see meaningful impacts depending on project and surcharge outcomes.
  • No direct State revenue increase or mandate on funds reported.

Procedural / Timeline notes

  • PSC must complete final action on plans within 180 days of filing (150 days for amendments).
  • Bill includes a 2‑year customer notice requirement before construction of projects affecting customers.
  • Bill text amends Article – Public Utilities (statutory STRIDE provisions).

Considerations / implications

  • The bill formalizes a requirement to consider electrification and alternatives to replacement, which could change which projects proceed and how costs are recovered.
  • Two‑year notification and comparative analysis requirements are intended to give customers and policy makers visibility and time to pursue non‑gas options, but could slow project timelines.
  • The operational effect on customer bills will depend on PSC practice, how companies structure plans, and the availability/cost of “natural gas alternatives.”

Compiled from official sources — confirm details with the bill’s official record.

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