Governor Signs Repeal of 100-Foot Rule for Natural Gas Hookups

ALBANY—New York Gov. Kathy Hochul signed legislation on Dec. 19 to eliminate the “100-foot-rule” for new natural gas hookups that state officials claim costs New Yorkers hundreds of millions of dollars a year.

The new law, which 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 passing them on to the rest of the utility’s ratepayers.

New York joins five other states, including California, Massachusetts, Colorado, Maryland and Oregon, that have removed similar ratepayer subsidies.

“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,” Gov. Hochul said. “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.”

Each year, New Yorkers spend hundreds of millions of dollars on connecting new homes to the gas system. Currently, all existing ratepayers of a utility subsidize the first 100 feet of new gas lines. Under legislation S.8417/A.8888 signed by Gov. Hochul, new applicants must pay 100% of the material and installation costs for gas service, as opposed to other ratepayers.

State Senator Liz Krueger said, “Kathy Hochul just gave New Yorkers a $600-million Christmas present by signing our bill to repeal the 100-foot rule. This is a massive win for New York’s gas customers, and for clean air and a livable climate. In recent years the 100-ft rule has forced all ratepayers to subsidize gas hookups for new customers and a tidy profit for utility shareholders, at a cost of $600 million every year, which compounds many times as it is paid off on gas bills for years down the road. That burden on New Yorkers will now be lifted.”

Assemblymember Jo Anne Simon said, “This is a victory for hard-working New Yorkers, our wallets, and our climate. Utility companies have had a blank check to expand polluting gas infrastructure and pass those costs along to consumers through higher monthly bills. Repealing the outdated 100-foot rule ends this subsidy to the gas industry, saves consumers money, and promotes the transition to greener, more affordable energy.”