Gas Spending and Analysis

OPC’s gas utility spending reports provide critical information on current and future business-as-usual spending to maintain and expand the gas delivery system—the pipes, concrete, computers, and other infrastructure that make up the local distribution system. The data relied on is publicly available information from utility reports and regulatory filings. While actual utility rates depend on many decisions yet to be made, the reports provide numerous data and projections that reflect business continuing as usual, without significant deviations in State policy, customer behavior, or utility practices, will result in customer bill increases.

OPC released its most recent spending report in February 2025. As its first report released in 2022, the 2025 report highlights the need to reverse current practices otherwise, customers will face daunting rate increases until 2100. 

The 2025 report, prepared by the consulting firm DHInfrastructure, includes analysis of current spending data, gas utility capital spending projections, customer utility bill projections resulting from infrastructure spending, and the impact of customer migration on customer bills.

Overall gas utility capital spending projections from the 2025 report show Maryland’s three largest gas companies continue to pursue massive annual capital investment programs and are projected to spend $49.3 billion on capital investments between now and 2100. This represents a 49 percent increase in projected spending from our 2022 report. And as of February 2025, only 3% of STRIDE program spending has been recovered, meaning Maryland customers are only at the very early stages of paying for this spending. 

Current spending data: 

If the pace of capital investment continues, the capital component of the revenue requirements that customers pay will more than double over the next 25 years. If STRIDE plans continue as currently constituted, by 2044 Maryland customers could be paying upwards of three times more for STRIDE investments per year than they paid in 2024. For more information about how the STRIDE plans accelerate and encourage infrastructure spending, please visit “STRIDE.”

Customer utility bill projections:

We evaluated how the capital investments will affect the typical customer’s monthly winter bill, assuming business as usual—without accounting for any migration of gas customers to electric service. 

  • BGE: Winter bills will grow from an average of $240 in 2022-2024 to $402 by 2035, and $498 by 2050. If gas prices spike to 2022 levels, another $51 per month would be added to the typical winter bill. 
  • WGL: Winter bills will grow from an average $194 in 2022-2024 to $256 by 2035, and $340 by 2050. This could be an additional $50 per month if gas prices spike to 2022 levels. 
  • Columbia: Winter bills will grow from an average $229 in 2022-2024 to $337 by 2035, and $365 by 2050. This could be an additional $88 per month if gas prices spike to 2022 levels.

Accounting for likelihood of customer migration from gas given highly efficient electric appliances are outcompeting gas appliances nationally, and climate policies promoting electrification, by 2035 a typical customer’s winter bill at various reduction scenarios (10, 30, and 70 percent):

  • For BGE, increases to $491/month with a 10% reduction, to $595/month with a 30% reduction, and to $1,219 with a 70% reduction. 
  • For Columbia, increases to $457/month with a 10% reduction, to $549/month with a 30% reduction, and to $1,102 with a 70% reduction. 
  • For WGL, increases to $324/month with a 10% reduction, to $377/month with a 30% reduction, and to $696 with a 70% reduction. 

For more in-depth discussion and analysis within the February 2025 Gas Spending Report, click here. For synopsis of the 2025 Gas Spending Report, click to download the Executive Summary and the summary of key findings. To read the 2025 press release, click here.

Previous Gas Reports and subsequent exec summary and key findings: 

Resources:

Op-Eds:

Press Releases: