On January 8, 2025, the Pennsylvania Public Utility Commission (PA PUC) reversed its longstanding enforcement stance, holding that landlords will be regulated as a “gas pipeline operators” when furnishing gas to their tenants using behind-the-meter gas distribution systems on their properties. In addition to aboveground and underground pipelines, the commission now claims jurisdiction over gas piping contained entirely within buildings.
The PA PUC’s unprecedented interpretation will require any landlord—regardless of size and whether they own one building or many in one complex—to comply with federal gas pipeline safety laws, including the federal Pipeline Safety and Hazardous Materials Administration, which have historically only applied to natural gas distribution companies and gas pipeline operators. Further, the PUC held that submetered properties are defined as master meter systems when meeting the other factors of the definition. These new, onerous and costly requirements include registration, operation, maintenance and reporting obligations, undoubtedly resulting in increased costs to landlords.
Read the full alert at the Duane Morris LLP Website.