At the tail end of this year’s legislative session in Albany, the Assembly and the Senate passed a bill that would repeal an esoteric section of New York’s utility law referred to as the “100-foot rule.” Once Gov. Hochul signs the bill, it will deliver hundreds of millions of dollars every year in savings to gas customers. Unsurprisingly, Big Oil and their lobbyists are working hard and spending harder to spread disinformation about this consumer-friendly bill, because it might cut into their bottom line.
Under existing law, when a prospective customer applies for a new gas hookup, as long as they are within 100 feet (200 feet in some circumstances) of an existing gas line, they do not have to pay any of the costs associated with the new connection. But it’s not the utility that picks up those costs for the new customer. Instead, it’s all the other existing gas customers being forced to subsidize the new connection.
According to a recent analysis of utility data by the Public Utility Law Project, the 100-foot rule costs almost $600 million every year — driving up everyone’s bills.
Under a recent three-year rate agreement announced by National Grid, customers in New York City and Long Island would see their gas bills increase by an average of nearly $30 per month in the first year, $14 per month in the second year, and about $20 per month in the third year. These rate increases are driven in large part by nearly $5 billion in spending on new gas infrastructure, including through forced subsidies under the 100-ft. rule.
The bill that passed the Legislature will end the 100-ft. rule for new residential gas hookups. This will not prevent anyone from connecting to the gas system if they choose to do so. It will simply mean that everyone else won’t be forced to pay millions to hook up new customers and line the pockets of utility shareholders.
The cost of connecting to the gas system remains the same. The only difference is who pays that cost: the person who wants to be connected, instead of everyone else who doesn’t have a choice 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.
