The Climate Action and Sustainability Committee of Palo Alto convened on June 13, 2025, to discuss the scoping of a gas utility transition study. Assistant Director for Climate Action, Jonathan Abenschein, presented the report, emphasizing the need to assess the financial and physical impacts of electrification on the gas system.

Abenschein outlined that the study aims to evaluate how a significant reduction in gas usage, driven by local and state policies promoting electrification, will affect the gas utility. The committee acknowledged that as gas consumption declines, there will be financial implications, including costs associated with system abandonment and the need to maintain safety and operational efficiency during the transition.

The study will model various scenarios, projecting gas sales reductions from 20% to 80%, primarily focusing on the replacement of gas heating systems with electric alternatives. Notably, the study will exclude large medical and industrial buildings due to their complexity in modeling.

Key objectives of the study include estimating the costs of abandoning parts of the gas system, identifying strategies to mitigate these costs, and understanding how declining gas sales may impact utility rates and operations. The committee discussed the importance of ensuring that the transition remains equitable and safe for all customers.

Abenschein highlighted that the study will also analyze the potential for retiring sections of the gas infrastructure and the cost efficiencies associated with block retirements versus service-by-service disconnections. The findings will inform future policy decisions and strategies for managing the transition effectively.

The meeting concluded with a commitment to continue collaborating with the Utilities Commission and other stakeholders to ensure a comprehensive approach to the gas utility transition. The committee plans to review the study's findings and implications in future meetings, aiming for a smooth transition to a more electrified energy system in Palo Alto.