Gas Distribution System Regulatory Handbook

The Future of Heat Initiative (FoHI) retained Synapse to lead development of the Gas Distribution System Regulatory Handbook, a practical reference for state utility commissioners, commission staff, consumer advocates, and other intervenors. The handbook is organized so practitioners can turn directly to the issue before them, whether in a rate case, a leak-prone pipe filing, a depreciation study, or a dedicated planning or “future of gas” docket.

Gas utilities face rising distribution costs driven by accelerated pipeline replacement, growing competition from cold-climate heat pumps, state decarbonization policies, and volatile commodity prices. Together these raise risks of unaffordability, stranded costs, and a utility “death spiral.”

Synapse reviewed regulatory orders, utility filings, and working group activity in states that have opened future-of-gas proceedings, along with related leak-prone pipe and non-pipeline alternatives proceedings. Each chapter frames the core regulatory question, summarizes recent experience, and sets out best practices on topics including load forecasting and scenario analysis, capital planning, benefit-cost analysis, stranded costs, utility incentives, securitization, thermal energy networks, rate design, depreciation and net salvage, renewable natural gas and hydrogen, and the obligation to serve. Among its conclusions: regression-based forecasts understate structural change; accelerated cost recovery rewards pipe replacement over repair or retirement; risk analysis should be rigorous and inform benefit-cost analysis for asset replacement decisions; non-pipeline alternatives are underused; stranded-cost risk should be central to capital decisions; and standalone proceedings work best when regulators hire consultants directly, give stakeholders structured roles, and set binding near-term milestones. Synapse completed the handbook in August 2026. You can find it here.