Palo Alto staff outline scope for gas-utility transition study, model multiple electrification scenarios

City of Palo Alto staff presented the scope of a study intended to estimate how high levels of electrification — driven by local, state and regional policy — could affect the city’s gas utility physically, financially and for safety, and asked the Climate Action and Sustainability Committee for feedback on assumptions and modeling approaches.

The study, presented by Jonathan Abenschein, assistant director for climate action, will model a range of electrification scenarios and examine the costs of decommissioning parts of the gas network, how remaining fixed costs might be allocated among fewer customers, and where parts of the system could be safely retired. "This study does not is not, a statement of what our goals are or what we think the future is necessarily going to bring. It's a study of several different scenarios," Abenschein told the committee.

Why it matters: Palo Alto’s gas utility serves homes and businesses that use gas for space and water heating; replacing those uses with electric alternatives would reduce gas sales and change the utility’s revenue base. Staff told the committee they need data to identify safety and operational risks, estimate decommissioning costs, and craft…