New York will soon stop forcing utility customers to pay for gas hookups at newly built homes.
Governor Kathy Hochul signed legislation Dec. 19 that eliminates the long-standing “100-foot rule,” a policy that spread the cost of new residential gas connections across all ratepayers.
Under the old rule, utilities covered the first 100 feet of a new gas line and passed that cost on to existing customers. State officials say the subsidy cost New Yorkers hundreds of millions of dollars each year.
What changes under the new law
The legislation, S.8417/A.8888, shifts the full cost of new residential gas hookups to the people requesting them. New applicants will now pay 100 percent of the material and installation costs.
The law does not ban new gas hookups. Utilities still have an obligation to provide service, but they can no longer bill other customers for those connections.
Governor Hochul said the change targets fairness and affordability.
“It’s simply unfair… to expect existing utility ratepayers to foot the bill for a gas hookup at a brand new house that is not their own,” Hochul said.
When it takes effect
The new rule applies only to residential buildings and will take effect in 12 months.
Supporters say the change will ease pressure on monthly utility bills while encouraging cleaner energy choices. State officials also note that New York now joins California, Massachusetts, Colorado, Maryland, and Oregon in removing similar subsidies.
State leaders framed the move as part of a broader affordability push that focuses on lowering everyday costs for households statewide.
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