Brattle Economists Explore How Gas Utilities Can Play a Pivotal Role in the Clean Energy Future

BOSTON, August 24, 2021 / PRNewswire / – As pressure mounts in many US cities and states to ban new uses of natural gas and enact electrification regulations, gas utilities are facing increasing uncertainty. In a new series, The Future of Gas Utilities Series: Transitioning Gas Utilities to a Decarbonized Future, Brattle Group economists outline the need for gas utilities to become proactive, innovative participants in a clean energy future and provide details on how they can now develop long-term strategies to cope with the transition in a tax and socially responsible manner.

The three-part series revolves around three building blocks for the conversion of gas supply companies:

  • A framework for how gas suppliers can assess risks and opportunities related to the decarbonisation of the energy sector
  • Strategies for Growing Business During Transition
  • Practical steps to implement these strategies and solutions
  • Part 1 of the “Assessing Risk” series published today identifies several key challenges that traditional gas utility business models face as electric heating overtakes gas heating and regulators or political bodies increasingly question the role of natural gas in meeting climate change policies Gates. These risks, as great as they may be, can be turned into opportunities, the Brattle authors note. This requires identifying comparative advantages for the gas industry in terms of likely infrastructure and energy service needs, targeting critical market niches, developing new planning tools and making several operational and regulatory adjustments to prepare for the transition and be successful.

    “With approximately $ 150 billion to $ 180 billion in risk of unrestored gas distribution infrastructure, utilities must continue to invest in existing systems to meet safety and reliability requirements, even with managed, declining gas demand,” said the series co-author Josh Figueroa, a Brattle employee. “To avoid a potential death spiral that drives energy bills higher and more customers to switch, gas utilities need to develop adaptive, long-term business strategies that mitigate emerging risks and use proactive and innovative approaches.”

    Parts two and three of the series will be released and available on the Brattle website in the coming months. The series will culminate in a symposium at the end of 2021 that will bring Brattle and industry experts together to discuss key challenges and opportunities facing the gas industry.

    “The Future of Gas Utilities Series” was published by Principal. composed Frank Graves; Associated Josh Figueroa, DR. Long lam, and Dr. Kasparas Spokas; Senior Research Analysts Tess counts, Maria Castaner, and Katie Mansur; and Research Analyst Shreeansh Agrawal.

    The Brattle Group answers complex economic, financial and regulatory questions for businesses, law firms and governments around the world. We stand out for the clarity of our insights and the credibility of our experts, which include leading international academics and industry specialists. Brattle has over 400 talented professionals on three continents. Visit for more information.

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    SOURCE The Brattle Group

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