NEW YORK (WKBW) — New York Governor Kathy Hochul announced she signed legislation on Friday to eliminate the "100-foot rule" for new residential natural gas hookups.
According to the governor, New Yorkers spend hundreds of millions of dollars connecting new homes to the gas system each year. Currently, all existing ratepayers of a utility subsidize the first 100 feet of new residential gas lines. Under the new legislation, the applicants must pay 100 percent of the material and installation costs for gas service, as opposed to other ratepayers.
“It’s simply unfair, especially when so many people are struggling right now, to expect existing utility ratepayers to foot the bill for a gas hookup at a brand new house that is not their own. I have made affordability a top priority and doing away with this 40-year-old subsidy that has outlived its purpose will help with that.”
The governor's office said the new law takes effect in 12 months and:
- Only applies to residential buildings
- Does not prohibit new gas hookups
- Utilities still have a legal “obligation to service,” but the law shifts the costs of natural gas hookups to the applicants rather than pass them on to the rest of the utility’s ratepayers.
National Fuel issued the following statement in response to the governor's announcement:
"National Fuel strongly opposes the repeal of New York’s 100-foot rule, which ensures homeowners and businesses can connect to safe, reliable, and affordable natural gas service.
Repealing this rule would force families and small businesses to pay thousands of dollars upfront and make affordable housing projects harder to build thus slowing the creation of homes for low- and moderate-income families. It would also discourage conversions from higher-emission fuels like propane and heating oil, blocking a cost-effective path to lower carbon emissions for more than 750,000 homes across the state.
Natural gas is critical for heating during extreme cold and supporting the electric grid during peak demand. Restricting access threatens reliability and affordability at a time when the state’s electric system is already under strain. Taking away this rule limits access to natural gas, a dependable and cost-effective option recognized in the State Energy Plan as essential for reliability and affordability.
Advocates claim repealing the 100-foot rule eliminates an unfair subsidy and saves ratepayers money, but that ignores regional differences and the full impact. In National Fuel’s service territory, the cost to connect new customers is offset by the revenue they bring, which helps cover fixed costs and can reduce or delay future rate increases for everyone.
State leaders should maintain balanced energy policy—prioritizing affordability, reliability, and customer choice while advancing environmental goals responsibly."
This is a story we reported on back in June. We spoke to New York State Assemblyman Patrick Burke, who was in favor of it, and New York State Assemblyman Patrick Chludzinski, who was against it.
Supporters said the purpose of the bills is to save ratepayers money.
"Anytime someone builds a new home, we all pay for their new gas line," Assemblyman Burke said in June. "If people want to add gas to their home, they can. It's just the rest of us aren't going to pay for it."
Those against the bill argue that taking away the free service will only hurt the housing market further.
"Now with new home construction and major renovations, it will add anywhere from $7,500 to $15,000 in upfront costs, possibly as high as $25,000 depending on where you live to connect to natural gas," Assemblyman Chludzinski said in June.
The governor's office said New York joins California, Massachusetts, Colorado, Maryland and Oregon, which have removed similar ratepayer subsidies.
