At the end of this year’s legislative session in Albany, the Assembly and Senate passed a bill that would repeal an esoteric section of New York’s public utility law referred to as the “100-foot rule.” Once Governor Hochul signs the bill, it will provide hundreds of millions of dollars each year in savings to gas customers. Unsurprisingly, the oil majors and their lobbyists are working hard Spending is harder To spread misleading information about the consumer-friendly bill, because it may affect their bottom line.
Under current law, when a potential customer applies for a new gas connection, as long as it is within 100 feet (200 feet in some circumstances) of an existing gas line, it does not have to pay any of the costs associated with the new connection. But it is not the utility that bears these costs for the new customer. Instead, all other existing gas customers are forced to subsidize the new connection.
According to A Final analysis From the facilities data before Public Utilities Billthe 100-foot rule costs nearly $600 million every year, leaving everyone’s bills higher.
Under the recent three-year price agreement announced National networkcustomers in New York City and Long Island will see their gas bills increase by approximately $30 per month in the first year, $14 per month in the second year, and approximately $20 per month in the third year. These price increases are largely driven by nearly $5 billion in spending on new gas infrastructure, including through forced subsidies below 100 feet. a base.
The bill passed by the Legislature would end the 100-foot distance. New residential gas connection rules. This will not prevent anyone from connecting to the gas system if they so choose. It would simply mean that everyone wouldn’t have to pay millions to attract 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, rather than someone else who has no choice in the matter.
It’s true that this change in who pays might discourage some people from connecting to the gas system — and that would save New Yorkers money, too. Data shows that it is cheaper to build all-electric homes, and it is cheaper in the short, medium and long term to live in an all-electric home.
A Report from Switchbox It found that all-electric new construction, across the state, would lead to lower energy costs — the statewide average savings being $900 per year, which rises to $3,000 per year in rural areas. In addition, A Analysis from RMI It found that new single-family homes powered by electricity are in many cases less expensive or cheaper to build than new homes powered by fossil fuels. While electricity is constantly becoming cheaper, the cost of gas is rising.
Some gas utilities and their allies in the fracking industry like to portray this cost-saving measure as a cost increase for people who want to connect to gas. But the truth is that no one today needs gas delivery, and they certainly have no right to force their neighbors to pay for it.
All-electric technology is affordable, reliable, energy-efficient and convenient. And it’s not just newly built homes that save money through electricity; Existing homes that use propane or oil can save thousands of dollars each year by switching to electricity.
Opponents also argue that New York doesn’t have enough electricity generation to support electrification, but that’s just a tired talking point in the gas industry. In realityThere is enough supply to support electricity, and New York continues to build new supply and transportation capacity.
Electricity can help alleviate supply constraints because heat pumps provide very efficient air conditioning when the electric grid approaches maximum capacity in the summer. In the winter, when heat pumps use more energy, capacity limitations are less significant.
Clearly, there is a lot of work to be done to provide energy affordability to New Yorkers, but eliminating these forced subsidies is outdated. Raising costs for hardworking New Yorkers is a critical step. We urge the Governor to move quickly to sign this bill and deliver this win for all of our voters.
Krueger is a state senator who represents parts of Manhattan. Simon is an Assembly member who represents parts of Brooklyn.