Gas supply halt in lakes region sparks housing crisis, exposes regulator failings
A sudden moratorium on new natural gas connections in the Lakes Region is throwing affordable housing development into chaos, exposing a critical oversight by local officials and a troubling lack of transparency from Liberty Utilities.
Rapid restrictions and developer frustration
Officials convened Tuesday to address the escalating situation, triggered by Liberty Utilities’ unilateral decision to deny service to new construction projects and halt reconnection efforts for sites undergoing renovations. This abrupt halt, occurring amidst a desperate need for 60,000 to 90,000 new homes, is threatening to derail critical infrastructure investments and exacerbate the region’s housing shortage.
Developer Tyler Carmichael of Laconia expressed his dismay, detailing how a planned conversion of a commercial building into 24 residential units was abruptly scuttled when Liberty refused to grant permission to connect to the gas grid. The ripple effect is significant, impacting not just this single project, but potentially dozens more.
Regulatory blind spots and missed warnings
City Manager Mitch Kloewer described the situation as a “secret that got kept too well,” highlighting the shocking lack of prior notification to local authorities. Carolyn O’Connor, a director for Liberty Utilities, admitted the company alerted state regulators in 2024 to anticipated capacity limitations, yet claimed she was unaware of the moratorium itself. This disconnect raises serious questions about internal communication and oversight.
Alternative solutions and stalled investment
While natural gas remains an option, developers are exploring alternatives – propane and electrification – but face significant hurdles. Sam Evans-Brown from Clean Energy New Hampshire emphasized the potential of state and federal incentives to lower the cost of heat pumps and energy efficiency upgrades. However, Carmichael noted that switching to electricity at this late stage adds substantial costs and delays, further complicating the timeline.
Regulatory accountability and a $20 million gap
Don Kreis, New Hampshire’s Consumer Advocate, sharply criticized both the regulators and Liberty Utilities, asserting that “there’s plenty of blame to go around.” He pointed out that Liberty had previously committed to investing $20 million in pipeline upgrades in 2022, a commitment seemingly unmet. The lack of action on this planned investment contributes to the region's vulnerability.
A community divided, a path forward
The moratorium affects seven communities – Tilton, Laconia, Franklin, Guilford, Belmont, Northfield, and Sanbornton. Despite O’Connor’s reluctance to provide specifics on the decision-making process, officials are pushing for increased transparency and a commitment to expedite pipeline development. Seeing community interest in energy infrastructure, even amidst frustration, is a positive sign, though the immediate priority remains alleviating the housing crisis.
Ultimately, the situation underscores a critical failure: the absence of proactive planning and a willingness to hold utilities accountable – a failure that’s now costing residents dearly.