Compounding Long-term Dividends at 5-7% CAGR
(MMtherms/household)
Gas Utilities Critical for Long-term Energy Delivery
Affordability, Reliability and Climate Benefits Remain Strong
Annual U.S. Household Energy Demand
Gas vs. Electric
Cost of Electricity Over Natural Gas
Delivered
Electrification Costs
Household Energy Bills
6.0x
120
Natural Gas
Electricity
U.S. Average
5.0x
100
80
60
40
20
4.0x
3.0x
U.S. Average
200%
175%
150%
125%
100%
liiii l… l...
0
Michigan
Virginia Maryland District of
Columbia
U.S.
Average
2.0x
1.0x
0.0x
Michigan Virginia Maryland District of
Columbia
U.S.
Average
75%
50%
25%
0%
Michigan
Virginia
Maryland District of
Columbia
U.S. Average
U.S.
Average
Demand for natural gas within
AltaGas' jurisdictions represents ~70%
of total household energy consumed.
The current delivered cost of
electricity over natural gas is
approximately three times.
Sources: Energy Analysis, AGA; RRA; Internal Analysis Using US Government Reported Public Information.; Notes: internal calculation, based on 2022 data, measured using therms equivalent.
AltaGas
Gas Utilities are Irreplicable
Switching to an all-electric home would
increase the average monthly bill by
~$275 (>75% of the average monthly
household savings).
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