Rising Gas Utility Bills: Infrastructure Costs Drive Increases

In 2025, gas utility bills in the United States rose significantly, increasing 60 percent faster than electric bills and four times faster than inflation, according to a report by the Building Decarbonization Coalition (BDC). The report highlights that the primary driver of these rising costs is not the price of gas itself, but rather the expenses associated with gas system infrastructure, which accounted for approximately 70 percent of customer bills in 2024. This shift in cost dynamics has emerged despite a decline in gas usage, driven by more efficient gas appliances and a broader push towards electrification to meet climate goals.

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The trend of rising gas utility costs can be traced back to increased spending on pipeline infrastructure, which tripled to $28 billion in 2023. Utilities began accelerating pipeline replacements around 2010, prompted by aging infrastructure that is prone to corrosion and leaks. Policies enacted in at least 42 states have allowed utilities to recover these costs more quickly, resulting in higher rates for consumers. The BDC estimates that had utilities maintained their pre-2010 investment pace, U.S. customers could have saved around $130 billion through 2023, equating to approximately $1,723 per household.

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Critics of the current gas utility model argue that continued investments in gas infrastructure are unsustainable, particularly in states with mandated climate goals. Kevin Carbonnier, a co-author of the BDC report, advocates for exploring non-pipe alternatives such as geothermal energy networks and demand-response programs to modernize energy systems without incurring the high costs of replacing aging gas pipelines. This sentiment is echoed in legislative initiatives across various states. For instance, Minnesota is considering a bill that would enable gas utilities to develop geothermal energy networks, supported by the state's largest natural gas utility, CenterPoint Energy.

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In California, lawmakers are advancing the Heat Pump Access Act to facilitate the installation of heat pumps, which are becoming increasingly popular as an alternative to gas heating. The trend is evident, as heat pumps outsold gas furnaces in the U.S. for the fourth consecutive year in 2025. This shift towards electrification is part of a broader movement to enhance energy efficiency and reduce reliance on fossil fuels.

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While the BDC report emphasizes the unsustainable nature of current gas utility spending, the American Gas Association counters that homes using natural gas save an average of $1,030 annually compared to those relying on electricity. This discrepancy highlights the ongoing debate regarding the economic viability of gas versus electric heating solutions.

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• “The sleeper culprit of these continuously rising bills is, in fact, the infrastructure,” — Kristin Bagdanov, Co-author, Building Decarbonization Coalition

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• “Let’s look at non-pipe alternatives to see if we can modernize our homes and our infrastructure, rather than putting in the millions of dollars to replace that pipe,” — Kevin Carbonnier, Co-author, Building Decarbonization Coalition

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• “We know that decarbonizing heating and cooling is one of the biggest challenges that we have in the clean energy transition,” — State Rep. Athena Hollins, Minnesota

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As the landscape of energy consumption continues to evolve, the implications of rising gas utility costs and the push for electrification will remain critical topics in the ongoing dialogue about energy policy and climate action.

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