Maryland Policy Update: Natural Gas Line Extensions
April 30, 2026
Maryland Policy Update: Natural Gas Line Extensions
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.
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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.”