Regulatory Update: Line Extension Allowances, Montgomery County Gas Ban, and BEPS

October 30, 2026

Washington Gas continues to monitor key regulatory and legislative issues that may impact builders, developers, and future energy choices across our region. While several matters remain under review, there are currently no changes affecting new natural gas service requests or Line Extension Allowances.

Line Extension Allowance Update

In our last newsletter, we shared that Chairman Barve appeared to recognize industry concerns regarding the proposed Line Extension Allowance rule. A Line Extension Allowance helps offset the cost of Washington Gas construction needed to provide natural gas service to a new development. Maryland is considering a proposed rule that would eliminate this allowance. If adopted, builders would be responsible for paying Washington Gas's full construction cost without the allowance.

During Commission discussions, it was indicated that an Order would be issued directing Staff to conduct a comprehensive review of Line Extension Allowances, including a cost-benefit analysis, and return to the Commission with options for future consideration.

At this time, the Commission has not yet issued that Order, and there have been no changes to the current process.

Montgomery County Gas Ban and BEPS Update

There have also been no significant developments regarding the Montgomery County gas ban litigation or the Building Energy Performance Standards (BEPS) matter. Oral arguments for both cases are currently scheduled for December and are expected to be heard back-to-back. Beyond those scheduled hearings, there have been no substantive updates or decisions issued.

Washington Gas continues to work closely with coalition partners and industry stakeholders to advocate on behalf of our customers, builders, and developers. We remain actively engaged in these proceedings and will continue to provide updates as new information becomes available.

What Does This Mean for Builders and Your Customers?

For now, it means business continues as usual. Washington Gas is still processing requests for new natural gas service and providing Line Extension Allowances under the current framework. No changes have been implemented to existing policies or procedures related to Line Extension Allowances, the Montgomery County gas ban, or BEPS.

Planning a Project? Contact Your Washington Gas Representative Early

If you are planning a new residential or commercial development project, contact your Washington Gas representative early in the planning process so we can help support your project's timeline, service needs, and long-term energy planning.

We remain committed to advocating on behalf of our customers and keeping you informed of any developments that could affect your projects or future growth plans.

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