Richmond utilities report urges lead-line replacement, recommends ending gas line-extension subsidies; CSO update details schedule and funding

Kevin Cianfarini, presenting the 2025 annual report for the Public Utilities & Services Commission, told the Government Operations Committee the commission recommends a more detailed hydraulic review as the city updates its Richmond 300 master plan and urged accelerated public outreach and grant seeking for lead service line replacement. "The city currently has roughly 2,200 known lead service lines, 14,000 known non‑lead service lines, and 66,000 service lines which require identification," Cianfarini said.

The commission also spotlighted natural gas policy. Cianfarini said declining per‑customer gas demand — in part because newer construction favors electric heating — has shifted utility finances and prompted a recommendation to eliminate line‑extension allowances. He cited an estimate from the Regulatory Assistance Project that removing those allowances could save existing utility customers between $1 million and $4 million annually. "Line extension allowances offer gas connections to new customers at no or reduced upfront costs," Cianfarini said, "and in an era of declining gas usage they are subject to financial uncertainty."

Council members asked about equity and homeowner impacts from ending the allowance. Cianfarini acknowledged the savings estimate is a ballpark and that detailed cost estimates would require DPU collaboration. Director Scott Morris of the Department of Public Utilities said DPU can evaluate utility‑backed financing and block‑by‑block replacement programs contingent on available EPA funding.

Scott Morris then briefed the committee on the city's combined sewer overflow (CSO) program. Morris noted the city operates eight wastewater pumping stations, 25 CSO outfalls and about 140 million gallons per day of wastewater treatment capacity. He reviewed regulatory milestones tied to the 2020 CSO law (Senate Bill 1064) and confirmed interim‑plan deadlines were met (interim plan submitted by July 1, 2021; construction began July 1, 2022) with an interim completion target of July 1, 2027. The final plan was required to be submitted by July 1, 2024; construction is to begin July 1, 2025, with full program completion targeted by July 1, 2035.

Morris said the original final‑plan cost estimate was about $1.2 billion but that a value‑engineering effort reduced estimated costs by over $500 million. He emphasized that the team reviewed many alternatives to reach required bacterial‑load reductions while lowering costs, and warned there are trade‑offs — additional projects, property acquisitions or community impacts — that require continued public engagement. Morris listed priority 2026 actions including advancing CSO‑31 storage tank, CSO‑24 partial separation, completing CSO‑12 design and awarding a fixed‑price design‑build contract backed by a recent $100 million allocation.

On audits and customer service, Morris reviewed DPU's progress modernizing its customer information system, reconciling bad accounts, updating warehouse inventory controls and deploying mobile meter‑reading units to reduce billing errors. He reminded the committee that DPU waived late fees and disconnections for November related to a federal shutdown and outlined a payment‑plan option (for example, spreading a $1,200 balance into $100 monthly payments over 12 months).

The committee recorded follow‑up actions: assist the Public Utilities & Services Commission in filling vacancies and clarifying quorum language; request a timeline update on the natural gas master plan; and ask DPU to evaluate financing options for lead service line replacement.

The committee did not take a formal vote on policy changes during the meeting; members requested additional data and follow‑up from DPU and the commission.