BUFFALO, N.Y. (WKBW) — A new law signed by Governor Kathy Hochul will soon change the cost of connecting a home to natural gas in New York. For homeowners in Western New York, the impact could be significant.
The legislation eliminates the state's long-standing "100-foot rule," which required gas utilities to cover the cost of the first 100 feet of a new residential gas line. Those costs were previously spread across all existing ratepayers through utility bills.
WATCH: New York ends ‘100-foot rule’ for natural gas hookups and how that may impact Western New Yorkers
The law takes effect in 12 months and it does not ban new gas hookups. Utilities will still have a legal obligation to provide service, but they will no longer subsidize the connection.
Why the state says the change is needed
Supporters of the law argue the current system unfairly forces existing customers to pay for gas hookups at new homes they do not own.
State officials say New Yorkers spend hundreds of millions of dollars each year subsidizing new residential gas connections. By eliminating the subsidy, they argue ratepayers could see long-term savings.
New York State Assemblyman Patrick Burke, a Democrat, supported the change.
"This is simply we no longer subsidize the 100 foot from a new build from the home to the main line," Burke said. "We’re not going to keep forcing others to pay for other people’s natural gas lines."
Burke emphasized the law does not limit access to natural gas, but instead shifts responsibility to homeowners and builders who choose to connect.
"If you want a gas line, that’s fine," he said. "You just pay for the line yourself."
Why critics are raising concerns
Opponents warn the law could increase upfront costs for homeowners and developers, making new construction, especially affordable housing, more expensive.
Republican Assemblyman Patrick Chludzinski, who represents parts of Western New York, said the cost of new gas hookups could rise by thousands of dollars.
"This isn’t just for single-family homeowners building a new home," Chludzinski said. "In the midst of a housing crisis, when we’re building affordable housing, the cost of this is going to be passed on to the builder, who’s only going to pass that on to whoever’s renting or leasing those apartments."
Chludzinski also argues the savings for ratepayers will be minimal and could be offset by future costs tied to state climate mandates.
What National Fuel is saying
National Fuel Gas Company, which serves much of Western New York, has strongly opposed the repeal of the 100-foot rule.
Brian Welsch, vice president of National Fuel, said the change restricts energy choice and creates new barriers to building housing.
"What this bill does is it further restricts energy choice," Welsch said. "It provides headwinds around housing, makes housing harder and more expensive to build, and discourages conversions."
National Fuel points out that nearly 90 percent of homes in Western New York rely on natural gas for heating, especially during extreme winter weather.
What this means for homeowners in Buffalo
If you already have natural gas service, this law will likely not affect you directly.
However, if you’re planning to:
• Build a new home
• Add natural gas service to an existing home
• Develop new residential or affordable housing
You may need to factor in thousands of dollars in additional upfront costs once the law takes effect.
What happens next
The law will go into effect in 12 months, giving homeowners, builders, and utilities time to prepare. State officials say New York joins several other states that have ended similar subsidies.
