Local officials gathered Tuesday to address an ongoing moratorium on new natural gas connections in the Lakes Region in a meeting organized by Rep. Maggie Goodlander.
The moratorium has been a source of frustration for residents and local developers, who said Liberty Utilities has denied gas service to buildings, and has declined to re-start gas service at sites that disconnected for construction projects.
That’s impacting the development of affordable housing, officials said, at a time when between 60,000 and 90,000 new homes are needed to meet the needs of a growing population.
Carolyn O’Connor, a director of government and regulatory affairs from Liberty Utilities, said the company informed state regulators in 2024 that they anticipated a lack of capacity for gas service in the area. But O’Connor said she was not aware of any public announcement of the moratorium, and several local officials said the denials took them by surprise.
Mitch Kloewer, Franklin’s city manager, said officials didn’t know about the moratorium until they heard from a resident who couldn’t connect their household to gas.
“I don't know how a secret that big got kept that well,” he said.
Developers converting a building from commercial property into 24 residential units in Laconia were planning to use natural gas, but when they tried to connect, Liberty denied their request, said Tyler Carmichael, the city’s assistant director for planning and community development.
Natural gas isn’t the only option for powering buildings. Developers could switch to propane, or electrify their heating systems and hot water heaters. Clean Energy New Hampshire’s Sam Evans-Brown said state and federal programs could help bring down the cost of heat pumps and energy efficiency upgrades, making electricity a more affordable option.
In Laconia, the developer is trying to convert the building to electricity. But switching over this late in the process involves additional costs and wait times, Carmichael said.
There have been at least 18 cases in which Liberty has denied gas service to a customer, officials said. O’Connor said the moratorium affects seven communities: Tilton, Laconia, Franklin, Guilford, Belmont, Northfield, and Sanbornton.
But, she told the group she couldn’t provide specifics on the nature and scope of the moratorium, how Liberty was assessing which connections to deny, or share details about solutions the company is working on. She said another Liberty representative would address those questions.
O’Connor said Liberty has done “preliminary engineering” on expanding pipeline capacity in the area, and would continue doing that engineering in 2026.
In 2022 filings, Liberty said they would spend $20 million on a project to upgrade the pipeline, according to New Hampshire Consumer Advocate Don Kreis. But, he said, it appears the company hasn’t moved forward with that project, and state regulators haven’t pushed them to.
“There’s plenty of blame to go around here,” Kreis said. “I don't think the company deserves to be let off the hook. It has failed to deploy necessary capital in order to meet its public service obligations. But the regulators have failed to be vigilant in oversight of the company.”
Goodlander, who called the meeting after learning of the issue in February, said she would push for more transparency from Liberty.
“In the middle of what is a genuine cost crisis where building more homes is so core to the solution, you've made it even more uncertain and unaffordable to do that. And everyone's projects are hanging in the balance,” Goodlander said.
There are some interim solutions Liberty could institute, including adding liquefied natural gas to their existing system. But among those gathered for the meeting, speeding up pipeline development seemed to be the main goal.
For O’Connor, seeing a community excited about energy infrastructure was exciting, even if officials were frustrated with Liberty.
“When we see large infrastructure projects, or even small ones, a lot of times it's mostly
concerns,” she said. “You don't hear the voice of the communities that want the development.”
