Gas System Enhancement Program (GSEP)
UPDATE ON GAS SYSTEM COSTS
New data and analysis in CommonWealth Magazine
by report author Dorie Seavey
Spending billions fixing gas system makes no sense
“The glaring disconnect between GSEP’s original purpose and its runaway reality must be addressed. . . . To ensure that large investments of ratepayer money actually move us toward our climate goals, the Legislature should replace GSEP with a tailored ‘gas system transition program’ focused on promoting safety, reducing emissions, and using resources wisely during the energy transition.”
A report commissioned by the Gas Transition Allies finds that Massachusetts’ gas pipe replacement program is no longer financially sound and is not meeting its goals.
Intended to increase safety and reduce emissions, the Gas System Enhancement Program (GSEP) has become a massive boondoggle.
Projected to exceed $40 billion, it’s the Big Dig you’ve never heard of.
When legislators read the report, they passed legislation that requires regulators to establish a stakeholder working group to make recommendations for aligning GSEP plans with statewide greenhouse gas emission limits.
PRESS INQUIRIES: Contact gastransitionallies@gmail.com.
GSEP AT THE CROSSROADS
Watch the recording of our webinar on GSEP at the Six-Year Mark, including:
An in-depth look at the report with author Dorie Seavey
Comments on important policy changes from Senator Michael Barrett
Environmental justice perspective from Maria Belen Power of GreenRoots
“The underlying premise of GSEP—the indefinite continuation of the fossil gas distribution network—is irreconcilably at odds with the Commonwealth’s climate mandates and the urgent need for state action to dramatically reduce greenhouse gas emissions. ”
“The questions raised in this report ... warrant a fresh statewide look at this program.”
“It's time to rethink the current gas utility model that incentivizes pouring $40 billion into a failing gas system. Instead, we can invest in clean energy for everyone and fund quality jobs now.”
—Ania Camargo, Gas Transition Allies
WHAT’S IN THE REPORT
GSEP was created in 2014 to accelerate the replacement of leak-prone gas pipe owned and operated by the Commonwealth’s six investor-owned gas utility companies. Its intention was to improve safety and reduce emissions from gas leaks.
GSEP at the Six-Year Mark is a detailed, deeply researched analysis of the program that includes:
A description of the Commonwealth’s gas distribution system and a primer on how GSEP works
An assessment of GSEP’s outcomes to date based on utility-provided data, including miles of infrastructure replaced, program costs, and impact on reducing leaks and fugitive gas
Projected future costs of GSEP
Feasibility of utility plans for meeting GSEP’s approved timeline
Prospects for cost recovery by the utilities
Documentation of unprecedented gas company petitions for higher rates of return and faster cost recovery because of the impact the Commonwealth’s climate goals will have on utility operations.
KEY FINDINGS
GSEP has become a Big-Dig scale mega-project with total costs likely to exceed $40 billion, based on new data released by utilities during the DPU Future of Gas proceeding.
GSEP lacks basic program management and oversight controls. As a result, massive infrastructure decisions—totaling more than half a billion dollars annually—are being made in a piecemeal fashion.
The Department of Public Utilities has extended GSEP’s time frame to 2039 but meeting even this revised goal is increasingly unlikely.
There is no clear or compelling evidence of reduced gas leaks, leak rates, or declining methane emissions.
Cost recovery challenges for GSEP are likely to be substantial with regressive gas rate burdens for lower-income households.
GSEP is concerningly disconnected from the Commonwealth’s mandated decarbonization goals.
“GSEP is on a course to generate unrecoverable costs, an outcome with the potential to create serious inequities for ratepayers.”
— GSEP at the Six-Year Mark
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EXECUTIVE SUMMARY
An overview of GSEP at the Six-Year Mark with key findings and recommendations.
“This report finds that GSEP is in dire need of systemic, state-wide evaluation.”
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URGENT POLICY CHANGES
GSEP at the Six-Year Mark alerted our state leaders to request an investigation. We look forward to the GSEP Commission’s findings.
WHAT CAN WE DO?
This report is a wake up call to state leaders.
The Governor, the Executive Office of Environment and Environmental Affairs, the Department of Public Utilities, and the legislature can redirect GSEP funding to invest our money in clean energy.
It’s time to Triage and Transition:
Prioritize safety by incentivizing successful repair of the biggest, most hazardous leaks in line with a gas decommissioning plan.
Invest in renewable, zero-emissions energy to align with climate mandates.
ABOUT THE AUTHOR
Dorie Seavey is an applied research economist based in Boston, Massachusetts. Her current work focuses on complex systems change addressing the urgency of climate change where she specializes in targeted analyses leveraging sound data and research. Her prior research focused on issues for low-income populations in the United States, specifically home care and nursing home workers, disadvantaged job seekers, temp workers, families receiving welfare assistance, and families living with food insecurity and hunger. As Policy Research Director and Senior Policy Advisor at the Paraprofessional Healthcare Institute for over a decade, Seavey worked to successfully revise federal regulations to allow home care workers the right to minimum wage and overtime coverage, one of the few labor rights victories of the past thirty years.
Seavey received a PhD in Economics from Yale University and holds an MSc in Economics from the London School of Economics and a BA from Stanford University.
