(The Center Square) – Property owners hooking up natural gas lines in new homes will soon cover the cost themselves.
This, after Gov. Kathy Hochul signed legislation that undoes the “100-foot-rule,” a decades-old provision that requires utility companies to connect new buildings to the system for free, so long as they are located within 100 feet of a gas main. Supporters of the new law say these costs are passed on to other customers.
“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,” 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.”
The connection price tag ranges between $2,500 and $10,000 per home, some estimates show. That amounts to a $200 million annual savings for bill payers, said Environmental Advocates New York. The nonprofit says doing away with the rule will bring the state closer to its climate action targets and encourage more homeowners to choose lower-emission utility services.
Critics, however, say the bill is a “blow to affordability” that lets utility companies off the hook.
“Without it, families and small businesses could face thousands in unexpected costs just to access basic heat and energy,” said Sen. Patricia Canzoneri-Fitzpatrick, R-Valley Stream, in a letter to Hochul sent in June. “Banning affordable, reliable energy and shifting the cost to families is not a climate solution.”
The new law will take effect in 12 months and follows in the footsteps of five other states: California, Massachusetts, Colorado, Maryland and Oregon.
