Geothermal network authority draws industry warning: limit utility construction to large projects

BOSTON — A notable change in the bill would allow gas companies to own and operate ground‑source geothermal loops and thermal networks. The administration said allowing regulated utilities to finance and build thermal energy networks could bring capital and scale to large hospital, university and industrial customers.

Geothermal contractors and the New England Geothermal Professional Association (NEGPA) told the committee they support expanded geothermal deployment but objected to broad authorization allowing regulated gas utilities to build geothermal systems of any size and to recover those costs through tariffs. They warned utilities’ balance sheets, access to tax‑exempt financing and ability to amortize investments over decades would outcompete local geothermal drillers and installers and risk closing existing small businesses.

NEGPA proposed limiting utility ownership or tariff recovery to systems at or above a size threshold (roughly 1 MW in the association’s proposal) so utilities can serve very large campus‑scale projects while local firms continue to design, drill and install systems for residential, small commercial and municipal projects. Association witnesses also suggested a mechanism for third‑party developers to develop systems and then allow utilities to purchase systems after a period of operation.

Legislators and other witnesses said geothermal networks could lower life‑cycle costs and expand non‑emitting thermal options, but several asked for guardrails to protect local installers and to ensure prevailing wage and workforce transition plans are included for projects funded or backed by the utilities.