Regulatory Updates
July 02, 2026
Update On Line Extension Allowance Draft Regulations
On May 8th, The Maryland Public Service Commission (“PSC”) held a hearing on Staff’s proposed regulations banning Line Extension Allowances (“LEA’s). Maryland’s utilities were united in opposing the proposed regulations. The utilities said that if these regulations are issued without change, it will have severe negative consequences for housing costs, energy affordability and customer choice. The utilities further spoke to there being no evidentiary record at all – let alone one supporting the need for these changes, OPC’s argument that LEA’s are a subsidy, and there has also been no analysis of the affordability/impact on cost of these regulations.
Washington Gas is excited to inform you that Chairman Barve appeared to recognize all of these concerns and stated that an Order will be issued that will request staff go back and do a full analysis of Line Extension Allowances, including a cost-benefit analysis and for Staff to come back to the Commission at some point in the future with options for the Commission to consider.
What does this mean for you and your customers? At this time, there are no changes to how Washington Gas handles requests for new service or provides Line Extension Allowances.
Montgomery County Gas Ban
As you all may remember this particular Gas Ban applies to new construction across multiple types of entities including residential. The Gas Ban will take effect at some point in the future after Montgomery County issues regulations reflecting the Ban. Those regulations must be issued by December 31, 2026. Washington Gas, the National Association of Homebuilders of the United States, Restaurant Law Center, National Federation of Independent Business, Inc., the Maryland Building Industry Association, National Propane Gas Association, Philadelphia-Baltimore-Washington Laborers’ District Council and the Teamsters Local 96 (Plaintiffs or coalition) sued to stop the Ban. A U.S. District Court Judge dismissed the lawsuit against the ban on March 25th of this year, and the above entities have appealed to the U.S. Appeals Court for the 4th Circuit. Briefing is in process, and Plaintiffs submitted their opening brief on May 26th. We are excited that on June 2nd both the American Gas Association and the U.S. Department of Justice filed briefs supporting Plaintiffs’ position. Oral arguments have not been scheduled.
The coalition believes this Ban is illegal because it takes away the customer's choice guaranteed by the Federal Energy Policy and Conservation Act.
WGL feels confident in the coalition’s position that this Ban is illegal – and indeed notes that the 9th Circuit decision invalidating Berkeley’s similar ban came after the Plaintiffs in that case lost their challenge at the District Court level.
As things move forward in this case, we will keep you informed.