Bill > S684

This bill establishes a four-year pilot program for gas public utilities, which are companies that distribute gas to homes and businesses, to develop and test "thermal energy networks." A thermal energy network is a system that uses underground pipes to supply heating or cooling to multiple buildings by exchanging energy from sources like the earth's heat (geothermal energy), waste heat, or surface water, often in conjunction with heat pumps. The program allows these utilities to recover the costs of these "thermal energy network projects" through customer rates, with the goal of demonstrating the benefits and costs of these networks as an alternative to traditional natural gas infrastructure, especially in areas with aging gas lines or no existing gas service. Gas public utilities must submit a "thermal infrastructure plan" to the Board of Public Utilities (the state agency that regulates utilities) for approval, which will consider factors like project cost, expected benefits including greenhouse gas reductions and job creation, financial impact on customers, and whether the project serves vulnerable populations or addresses inefficient buildings. The Board will report on the pilot program's results and decide whether to extend or make it permanent, and the bill also updates the definition of a public utility to include thermal energy distribution under the Board's jurisdiction.