At a recent Utilities Board meeting on February 18, 2026, officials proposed the introduction of a Natural Gas Integrity Federal Compliance Charge bill rider. This new charge is designed to fund safety improvements for the local natural gas system.
The proposal follows a directive received from federal regulators in late 2024, requiring an accelerated replacement schedule for bare steel gas lines. The utility provider agreed to complete this work within ten years. These infrastructure upgrades aim to enhance community safety and maintain reliable service for approximately 200,000 customers.
A bill rider functions as an additional utility charge that is separate from standard base rates. It allows the utility to recover costs tied to specific projects or programs and is intended as a temporary measure. The need for accelerated work was not included in the five-year financial plan presented to City Council because the federal notice arrived after the plan’s submission.
If approved, residential customers would see an increase of $8.54 per month on their natural gas bills, representing a 17% rise in that portion of the bill and translating into a 2.9% increase on the total four-service utility bill. Commercial and industrial customers would face an $18 monthly increase.
The projected cost of this program is estimated at $90 million between 2026 and 2029. To maintain consistency with the original five-year rate case from 2024, officials expect the bill rider would remain in place through 2029. Afterward, there will be an evaluation to determine whether to continue using a bill rider or incorporate funding for these upgrades into base rates.
A central component of this effort involves assessing and replacing all bare steel gas mains and service lines due to their higher risk of corrosion. The acceleration means about 39 miles of infrastructure would be replaced annually, which is expected to improve long-term safety and reliability.
During construction periods, some customers may experience temporary service interruptions or notice increased activity as crews replace pipeline segments or service lines.
The utility acknowledged that rate changes can present challenges for customers and offered assistance programs for those needing help paying their bills.
Next steps include a rate hearing at City Council scheduled for April 14, followed by a decision on April 28. If approved, new rates would take effect July 1, 2026. Dates are subject to change pending confirmation from City Council agendas.
