Congressional Hearing Highlights How Natural Gas is Key to Energy Affordability
There was one clear takeaway from a recent House Subcommittee hearing: Banning natural gas in a misguided push for electrification is the wrong answer to the current affordability crisis.
Hearing witnesses emphasized the vital role natural gas plays in providing affordable, reliable energy to American consumers, with representatives from the National Association of Home Builders (NAHB), Competitive Enterprise Institute (CEI), and Washington Gas, warning that gas bans and electrification mandates would increase costs and strain the energy grid rather than solve the problem.
As Jim Steffes, Senior Vice President of Regulatory Affairs at Washington Gas, explained:
“Our customers tell us every day, either current customers that want to ensure an affordable future, a reliable future, or developers and builders who are trying to build in this region, that they want to have the choice of natural gas. Because they understand… that it’s the more affordable option. So we are hearing that every day from our consumers.”
Natural Gas Offers a Cheaper, More Reliable Option at the Right Time
Multiple members of the committee painted a stark picture of America’s future energy needs, as U.S. power demand is estimated to grow 25 percent from 2023 to 2030 and 78 percent by 2050, driven largely by artificial intelligence and energy-hungry data centers. This staggering increase in electricity demand is already straining regional power markets, but that hasn’t stopped state and local legislators from pushing blanket electrification mandates.
Forcing consumers to switch to all electric at a time when power usage is surging will no doubt drive prices higher. Steffes underscored this point in response to a question from Congressman Troy Balderson [R-OH]:
“For the customers that I serve, a lot of their needs are heating, natural gas heating, hot water cooking. If you mandate in our communities [that] no more natural gas will be used, those customers are going to find another way to get heat. They aren’t going to go without heat. They will use electric heat. That will add additional demand to the electricity market, while it is very difficult to increase supply. Additional demand without supply increases prices.” [emphasis added]
The best way to manage rising power demand is to focus on flexible, reliable, and affordable fuels—like natural gas. As Energy in Depth has previously analyzed, natural gas storage will be a cornerstone of future grid resilience and is essential to reducing grid strain from AI data centers. Therefore, electrification mandates not only ignore affordability concerns, but reliability concerns. Steffes further warned that removing natural gas as an energy source would strip away critical redundancy during emergencies, stating:
“Removing natural gas from federal facilities…will reduce the ability to have redundant energy needs in the moment of crisis. Clearly that will challenge reliability…I also think it will challenge affordability by doing that.”
The affordability angle here is undeniable. Lawmakers on both sides of the aisle acknowledged that costs are top-of-mind for consumers. Looking at the numbers, natural gas is clearly the frontrunner for affordable energy. NAHB Chairman Buddy Hughes highlighted just how much consumers save by using gas, testifying:
“Last winter, households using natural gas spent about 42 percent less and saved over 125 billion over the last decade.”
Recent data from the U.S. Department of Energy backs up these claims. Natural gas is 3.3 times more affordable than electricity, with households that use natural gas saving an average of $1,068 per year compared to homes using electricity instead for essential tasks, including heating and cooking.
Different States Reprioritize Consumer Choice
The hearing also gave a closer look at what electrification mandates would look like for different states, as some have already pursued fossil fuel bans and other restrictive policies.
Hughes discussed New York, a state that has already passed a gas ban, despite facing a housing crisis:
“New York has already passed a ban that takes effect in 2026, and that means no gas stoves, no gas heaters, no gas furnaces in new homes. In cold weather states, meeting those requirements can add more than $15,000 to the cost of a home. That’s just not sustainable in a place where most households are already priced out of a new home.” [emphasis added]
Another example of a state ignoring economic feasibility in the pursuit of lofty climate goals is Michigan, as emphasized by Congressman John James [R-MI]:
“Governor Whitmer is pushing to adopt the 2021 building codes—codes that would add an estimated $15,000 to the cost of a new home. Now let’s be clear about what that means. For every $1,000 increase in the price of a home, 3,392 families are priced out of the market. By adding $15,000 in mandates, you’re talking about tens of thousands of hardworking families losing their short at homeownership.”
Energy in Depth has previously noted how similar mandates have been received in New Jersey, with lawmakers on both sides of the aisle, as well as public citizens, sounding the alarm over restrictions of consumer choice and how the mandates place an unfair cost burden on powerless consumers.
By pursuing electrification mandates, each of these states goes against public opinion and citizens’ best interest. A one-size-fits-all electrification plan or mandate, as is being discussed, could have catastrophic impacts on the well-being of U.S. consumers, especially those who are already energy insecure.
As Energy in Depth previously explained, energy insecure households are already paying for more energy, and will be forced to pay even more if building electrification mandates hit. Notably, these mandates do not even accomplish a key goal promoted by supporters, emissions reductions. In fact, Congressman Nick Langworthy [R-NY] explained during the hearing:
“The numbers tell the story, natural gas is more affordable than electricity and will remain so for decades to come. The DOE analysis shows that eliminating it could increase energy consumption and emissions, which undermine our efficiency goals.”
Bottom Line: Americans across the nation are facing high energy costs, and the misguided push to electrify everything, from home heating to cooking, strips away consumer choice while ignores the current affordability crisis. Natural gas is the clear right way to go, as it provides an affordable, reliable solution to energy security issues, while simultaneously decreasing emissions. Rather than impose top-down electrification mandates, policymakers should recognize that natural gas is key to keeping energy bills manageable, the lights on, and emissions trending downward.
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