cover image: American Gas Association Energy Analysis Modeling the Economic Impacts of a Local Gas Moratorium in the ChicagoMetropolitan Area

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American Gas Association Energy Analysis Modeling the Economic Impacts of a Local Gas Moratorium in the ChicagoMetropolitan Area

9 Feb 2024

• Average monthly gas usage for households in IL is 89 therms, resulting in an average cost of $12.19 per MMBtu and a variable cost of $9.3 per MMBtu for households that use gas for heating (93% of homes with natural gas do use it for space heating). [...] • As a high-end cost estimate, by using a high-priced single month and not an average for the cost of gas purchased, use the most expensive monthly fixed gas cost, as well as the higher cost of service, this would incorrectly result in a cost closer to $16.5 per MMBtu for 2023 or nearly 35% higher than the actual average. [...] Using distribution and transmission but not the larger of the supply costs would result in a cost of $0.0332 per kWh or $9.8 per MMBtu in 2023. [...] • Accounting for the emissions saved, the average cost per ton of CO2e saved would be $413 per metric ton of CO2e. [...] Additional costs would include: (1.) the electric generation, transmission, and distribution costs associated with increased load on the whole of the PJM Interconnection; (2.) the potential for gas utilities to raise rates on customers once the size of the customer base decreases; and (3.) and risks associated with changes in the reliability of the electrical grid and the overall resiliency of the.

Authors

O'Brien, Brendan

Pages
5
Published in
United States of America