As the legislative session in Albany wrapped up this year, both the Assembly and the Senate approved a bill targeting an obscure piece of New York’s utility law known as the “100-foot rule.” Once Governor Hochul gives her signature, this legislation promises to save gas consumers hundreds of millions annually. It’s no surprise that major oil companies and their lobbyists are vigorously opposing and spreading misinformation about this consumer-centric bill, as it threatens to impact their profits.
Currently, the law stipulates that when someone applies for a new gas connection and is within 100 feet (or 200 feet in some cases) of an existing gas line, they aren’t responsible for the hookup costs. Instead of the utility covering these expenses, existing gas customers shoulder the financial burden by subsidizing the new connection.
A recent study conducted by the Public Utility Law Project reveals that the 100-foot rule incurs nearly $600 million in costs annually, contributing to higher bills for everyone.
In a new three-year rate plan announced by National Grid, gas customers in New York City and Long Island are expected to see their bills rise by an average of almost $30 monthly in the first year, $14 monthly in the second year, and about $20 monthly in the third year. These increases are largely due to around $5 billion allocated for new gas infrastructure, which includes enforced subsidies under the 100-foot rule.
The newly passed legislative bill aims to eliminate the 100-foot rule for new residential gas connections. This change will not prevent anyone from joining the gas network if they choose to; it simply ensures that others aren’t financially responsible for covering these new customer hookups, thus protecting utility shareholders’ profits.
The connection cost to the gas system remains unchanged; the difference lies in who bears this expense. Now, it will be the responsibility of the individual seeking connection, rather than all existing customers who have no say in the matter.
It’s true that this change in who pays may discourage some people from connecting to the gas system — and this will save New Yorkers money too. Data shows that it is cheaper to build all-electric homes, and cheaper in the short-, medium-, and long-term to live in an all-electric home.
A report by Switchbox found that, across the state, all-electric new construction would lead to lower energy costs — a statewide average savings of $900 each year, which increases to $3,000 per year in rural areas. Additionally, an analysis from RMI found new all-electric single-family homes are in many cases cost-competitive or cheaper to build than new fossil fuel-based homes. And while electrification is constantly getting cheaper, the cost of gas is only going up.
Some gas utilities and their allies in the fracking industry would like to portray this cost-saving measure as a cost increase for people who want to hook-up to gas. But the truth is that today nobody needs to hook up to gas, and they certainly don’t have a right to force their neighbors to pay for it.
All-electric technology is affordable, reliable, energy-efficient, and comfortable. And it’s not just newly-built homes that save money through electrification; existing homes that use propane or oil can save thousands of dollars every year by going electric.
Opponents also argue that New York does not have enough electricity generation to support electrification, but this is just a tired gas industry talking point. In reality, there is enough supply to support electrification, and New York continues to build out new supply and transmission capacity.
Electrification can help ease supply constraints because heat pumps provide extremely efficient air conditioning when the electric grid nears capacity in the summer. In winter, when heat pumps use more energy, capacity constraints are less of an issue.
There is obviously much more work to do to provide energy affordability for New Yorkers, but repealing this outdated forced subsidy that drives up costs for hard-working New Yorkers is a critical step. We urge the governor to act quickly to sign the bill and deliver this win for all our constituents.
Krueger is a state senator representing parts of Manhattan. Simon is an Assembly member representing parts of Brooklyn.
