Maryland Policy Update: Natural Gas Line Extensions
April 30, 2026
Maryland Policy Update: Natural Gas Line Extensions
Washington Gas continues to advocate for energy choice and affordability as the Maryland Public Service Commission (PSC) advances a rulemaking that would fundamentally change how natural gas service is extended to new customers.
In June 2025, the PSC issued an order requiring its staff to prepare regulations that would require new customers to pay the full upfront cost of extending natural gas service to their property. This would eliminate the long-standing framework under which extension costs are evaluated through an economic test that balances upfront investments against projected usage and revenues, reflecting the benefits new customers provide to the broader system.
Despite significant procedural concerns regarding the manner in which the rulemaking was initiated, and notwithstanding extensive comments, including from builders and developers, warning that eliminating line extension allowances would undermine housing availability and affordability in the state, the PSC Staff published the draft regulations proposing to end allowances in December 2025. Through two comment submission periods, utilities and many builders and developers have consistently weighed in to urge the PSC to support energy affordability and choice by retaining the current policy framework. The PSC is scheduled to hold a hearing on Friday, May 8, 2026 to consider whether the proposed regulations should proceed to publication as proposed rules in the Maryland Register.
If adopted, these regulations would significantly increase project costs for builders and developers, making otherwise viable developments potentially infeasible. At a time when affordability is a top concern for Maryland families, these new regulations intentionally create artificial barriers to entry, making basic energy access more costly and less attainable.
It’s critical to lend your voice. Builders and developers are strongly encouraged to testify at the May 8 hearing at the Maryland Public Service Commission at 10am. Please contact Ivana Sara at ivanasara@washgas.com for more information.
Washington Gas remains committed to serving the development community and ensuring that natural gas remains a viable, cost-effective option for new projects. Through regulatory engagement and public advocacy, we will continue working to preserve energy affordability, reliability, and choice while protecting the interests of Maryland’s builders and developers.