Capital Program Planning for New Hampshire Gas Utilities

by | Oct 21, 2026

New Hampshire · Natural Gas Utilities

New Hampshire's gas system is small, aging, and boxed in by winter. Your capital plan is where those pressures meet.

Only about one in five New Hampshire homes heat with gas — fuel oil and propane still dominate — and the state sits at the tail end of a constrained New England pipeline network. That leaves two investor-owned LDCs replacing aging main and defending long-lived investment against a shrinking heating base. Invizion helps gas utilities re-sequence a capital portfolio in a click — and defend every decision.

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The bottom line: New Hampshire has one of the nation's smallest, lowest-penetration gas systems — two investor-owned LDCs replacing aging main at the tail of a constrained New England pipe, with recovery through rate cases, not surcharges. The utilities that stay defensible will be the ones whose capital plans can re-sequence as fast as winter, regulators, and electrification move.
137,0921
Natural gas customers served statewide in 2024 — a small base for a small-penetration state.
~55%2
Share of New Hampshire's 2024 gas deliveries that went to electric power generation, not homes or businesses.
$18.613
Average residential price per Mcf in 2025 — among the higher rates in the country.
~50%4
Roughly half of New Hampshire households heat with fuel oil or propane; gas is a minority fuel.

The New Hampshire Landscape

Four forces are moving your project list at once

New Hampshire's gas sector is small, but the pressures on it are not. Aging pipe, winter supply limits, electrification, and rate-based recovery all reshape the capital plan you approved last year.

System Integrity — Aging Pipe & Safety

A small system, but old pipe in the ground

New Hampshire's gas mains are run entirely by two investor-owned LDCs — Liberty Utilities (EnergyNorth)5 and Unitil's Northern Utilities.6 Both operate the older cores of Manchester, Nashua, Concord and the Seacoast, where legacy cast-iron and unprotected bare-steel main — the pipe most associated with leaks — still has to be retired.

Under PHMSA's distribution integrity-management rules, that replacement is a multi-year, mandated obligation that competes with every other project for the same limited capital.7

Decarbonization — Electrification Pressure

A shrinking base to defend long-lived assets against

New Hampshire has not enacted a gas ban, and state energy policy now runs through the Department of Energy, created in 2021, which oversees least-cost planning and the ratepayer-funded NHSaves efficiency programs.8 But heat pumps are expanding quickly, and roughly half of homes already burn oil or propane, so gas has a smaller base to defend than in almost any other state.4

Declining throughput and a flat-to-shrinking customer count raise the stranded-asset question for any main investment expected to earn a return over 40–60 years.

Supply — Winter Constraints & Price

At the end of a constrained New England pipe

New Hampshire sits at the tail of a pipeline-constrained New England network. On the coldest days gas for heating competes with gas for power generation, and the region leans on imported LNG through the Everett terminal near Boston — a fuel-security risk ISO New England has flagged for years.9

Rather than build its way out, Liberty canceled the roughly 27-mile Granite Bridge pipeline and its Epping LNG storage project in 2020, contracting instead for capacity on the interstate Tennessee Gas Pipeline.10 About 55% of gas delivered in the state now serves power plants,2 and residential customers already pay near $18.61 per Mcf.3

Capital Recovery — Rate-Based, Not Automatic

Every capital dollar goes in front of the PUC

The New Hampshire Public Utilities Commission sets rates as a quasi-judicial body.12 Unlike many states, New Hampshire has no broad automatic infrastructure-replacement surcharge for gas; LDCs recover accelerated main replacement through base rates and step adjustments approved in rate cases.12

That makes each program directly reviewable — and collides with an affordability limit, because a New Hampshire customer facing a rate increase can switch to oil, propane, or a heat pump.8

Who Runs New Hampshire's Gas

Two investor-owned LDCs, no municipal gas, and an interstate lifeline

New Hampshire's retail gas is entirely investor-owned and PUC-regulated. There are no municipal or cooperative gas utilities; supply reliability rides on a handful of interstate pipelines and regional LNG.

Investor-owned gas LDCs

Rates & capital recovery regulated by the NH PUC

Liberty Utilities (EnergyNorth Natural Gas) State's largest gas LDC · Manchester, Nashua, Concord & ~30 communities5
Unitil — Northern Utilities Seacoast NH (Portsmouth, Dover, Exeter, Somersworth) & southern Maine6
Liberty Utilities — Keene Isolated propane-air system, not connected to interstate pipe5

Statewide, the two LDCs served 137,092 gas customers in 2024.1

Supply & interstate infrastructure

No municipal or cooperative gas in New Hampshire

Granite State Gas Transmission Unitil-owned interstate pipeline feeding the Seacoast6
Tennessee Gas Pipeline (Kinder Morgan) Interstate capacity contracted after Granite Bridge was canceled10
Portland Natural Gas Transmission System Canadian supply routed through northern New England
Everett LNG import terminal (regional) Winter backstop for New England's constrained pipe9

New Hampshire has no municipal or cooperative gas utilities — all retail gas is investor-owned, so reliability depends on this interstate and LNG network.

Rate-Setting & Oversight

Every capital dollar has to be defensible

New Hampshire recovers gas capital through rate cases, not an automatic surcharge — which means the burden of proof sits squarely on the utility.

  • New Hampshire Public Utilities Commission (PUC) adjudicates rates and capital recovery for Liberty EnergyNorth and Unitil Northern Utilities as a quasi-judicial body.12
  • NH Department of Energy, created in 2021, holds policy, least-cost planning, and the NHSaves efficiency programs — the electrification lever that pulls load off the gas system.8
  • No broad DSIC-style surcharge. New Hampshire recovers accelerated cast-iron and bare-steel main replacement through base rates and step adjustments set in rate cases, keeping each program directly reviewable.127
  • Active rate dockets. Both Liberty EnergyNorth and Unitil Northern Utilities have filed distribution rate cases at the PUC to recover system-integrity and modernization spending — approvals are contested, not automatic.12

Funding On The Table

For New Hampshire gas, the money is mostly in the rate base

Federal gas-infrastructure grants exist, but New Hampshire's structure means most capital is recovered from ratepayers — which raises the bar on getting the sequencing right.

  • PHMSA NGDISM grants — ~$196M/year (~$1B over five years). The federal Natural Gas Distribution Infrastructure Safety & Modernization program funds main replacement — but eligibility is limited to municipally- and community-owned systems, which New Hampshire does not have.13
  • Rate-based recovery is the primary channel. Because both LDCs are investor-owned, New Hampshire's gas capital is recovered almost entirely through PUC-approved rates and step adjustments rather than federal grants.12
  • PHMSA state pipeline-safety base grants reimburse a large share of the PUC's inspection and enforcement program, supporting the distribution-integrity mandates the LDCs must meet.137
  • NHSaves efficiency & electrification programs are ratepayer-funded and, by design, shift heating load toward electricity and heat pumps — a structural headwind to gas throughput that capital plans have to price in.8

Where Invizion Fits

Turn New Hampshire's gas-system decisions into a defensible capital plan

Invizion is scenario-based capital portfolio optimization built for utilities. When a replacement mandate accelerates, throughput forecasts shift, or a decarbonization ruling lands, you don't re-plan by hand for weeks — you model it and decide with a record to stand behind.

1

Model the “what-if” before it's forced on you

A faster main-replacement schedule, a gas-line-extension ban, an RNG mandate — build the scenario and see the impact on the whole portfolio, side by side with today's plan.

2

Re-sequence 500 projects in a click

When priorities move, Invizion re-orders the portfolio automatically — accelerating, stretching, or deferring projects against the constraints you set, not weeks of spreadsheet surgery.

3

Give regulators or your board a defensible record

Every prioritization and trade-off is captured. When you're asked “why this project, why now,” the answer is documented — not reconstructed after the fact.

New Hampshire's Gas, In Brief

Questions New Hampshire gas leaders are asking

Short, sourced answers — the same facts we dig into with utilities looking at their capital programs.

How many natural gas customers does New Hampshire have?
About 137,092 in 2024, served by two investor-owned LDCs — Liberty Utilities (EnergyNorth) and Unitil's Northern Utilities.156
Do most New Hampshire homes heat with natural gas?
No. Fuel oil and propane lead, and only about one in five households heats with natural gas — one of the lowest gas-heating shares in the country.414
What happened to the Granite Bridge pipeline?
Liberty Utilities canceled the roughly 27-mile Granite Bridge pipeline and its planned Epping LNG storage facility in 2020, instead contracting for capacity on the interstate Tennessee Gas Pipeline.10
Why are New Hampshire winters a gas-supply risk?
New Hampshire is at the end of a constrained New England pipeline network, so on cold days heating competes with power generation and the region relies on imported LNG through Everett — a winter fuel-security risk ISO New England has repeatedly flagged.911
How do New Hampshire gas utilities recover infrastructure investment?
Mostly through PUC rate cases and step adjustments — the state has no broad automatic surcharge, and federal NGDISM grants are closed to its investor-owned LDCs.1213
How does Invizion help New Hampshire gas utilities plan capital?
Invizion is scenario-based capital portfolio optimization for utilities. It lets you model how a main-replacement mandate, a winter-supply contract, or an electrification-driven throughput decline reshuffles your whole project list, re-sequence the portfolio automatically, and keep a defensible record of every trade-off for the PUC.

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About the Author

GB

Guy Barlow

President, Invizion

Guy Barlow leads Invizion, a capital lifecycle management platform for water and wastewater utilities. He has spent two decades at the intersection of utility capital programs, funding, and analytics, helping utilities make faster, more defensible capital decisions.

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Invizion helps utilities model, optimize, and defend their capital programs. Explore how it works, or read our latest thinking on capital planning across the utility sector.

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This briefing was last reviewed September 2026.

Sources

  1. U.S. Energy Information Administration — Number of Natural Gas Consumers, New Hampshire (137,092 total in 2024). www.eia.gov
  2. U.S. Energy Information Administration — Natural Gas Consumption by End Use, New Hampshire (electric power ~55% of 2024 deliveries). www.eia.gov
  3. U.S. Energy Information Administration — Natural Gas Prices, residential (New Hampshire $18.61/Mcf, 2025). www.eia.gov
  4. U.S. Energy Information Administration — New Hampshire State Energy Profile (fuel oil and propane lead home heating; natural gas a minority fuel). www.eia.gov
  5. Liberty Utilities — EnergyNorth Natural Gas, New Hampshire (service territory; Keene propane-air system). new-hampshire.libertyutilities.com
  6. Unitil / Northern Utilities — natural gas operations in New Hampshire and Maine; Granite State Gas Transmission. unitil.com
  7. PHMSA — Gas Distribution Integrity Management & Pipeline Replacement (cast-iron / bare-steel replacement obligations). www.phmsa.dot.gov
  8. New Hampshire Department of Energy — least-cost planning, energy policy, and NHSaves efficiency programs (department created 2021). www.energy.nh.gov
  9. ISO New England — winter fuel security and natural gas / LNG reliance in New England. www.iso-ne.com
  10. New Hampshire Public Radio (NHPR) — Liberty Utilities scraps the ~27-mile Granite Bridge pipeline and Epping LNG project (2020); contracts Tennessee Gas Pipeline capacity. www.nhpr.org
  11. Utility Dive — New England winter pipeline constraints and gas-supply reliability coverage. www.utilitydive.com
  12. New Hampshire Public Utilities Commission — gas rate cases, step adjustments, and cost recovery for regulated LDCs. www.puc.nh.gov
  13. PHMSA — Natural Gas Distribution Infrastructure Safety & Modernization (NGDISM) grants (~$196M/year, ~$1B over five years; municipal/community-owned systems only) and state pipeline-safety base grants. www.phmsa.dot.gov
  14. U.S. Census Bureau — American Community Survey, House Heating Fuel, New Hampshire (Table B25040). data.census.gov