Buffalo, N.Y. (WBEN) - After years of advocacy, New York becomes the latest state to repeal subsidy for gas utilities, ending a policy that advocates say will save New Yorkers nearly $600 million a year on costly gas pipelines.
Lawmakers in Albany who pushed this bill to the governor's desk were joined by several advocates from across New York on Monday to celebrate the signing of the 100-foot rule repeal by Gov. Kathy Hochul this past Friday.
Supporters of the repeal feel the 100-foot rule is an outdated, unfair policy that allows for-profit gas corporations to charge customers hundreds of millions each year to expand fracked gas pipelines.
"Kathy Hochul just gave New Yorkers a $600 million Christmas present by signing our bill to repeal the 100-foot rule. This is a massive win for New York's gas customers, and for clean air and a livable climate," said State Sen. Liz Krueger, one of the sponsors of the bill in the State Legislature. "In recent years the 100-ft rule has forced all ratepayers to subsidize gas hookups for new customers and a tidy profit for utility shareholders, at a cost of $600 million every year, which compounds many times as it is paid off on gas bills for years down the road. That burden on New Yorkers will now be lifted."
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According to advocates, utilities use policies such as the 100-foot rule to fund and profit from the expansion of fossil fuels, driving up energy costs for their customers. With her signature on the bill, the governor starts the process of removing these unnecessary charges from customers' bills.
Across the country, states are moving to end similar giveaways for gas utilities. California and Colorado have already eliminated their states' versions of the 100-foot rule, while Massachusetts and Maryland are advancing the process in their own states. Washington, Oregon, and Minnesota have begun or are considering similar phase outs as well.
"This is an incredible victory for hard-working New Yorkers, our wallets, and our climate," said State Assemblymember Jo Anne Simon on Monday. "Utility companies have had a blank check to expand polluting gas infrastructure and pass those costs along to consumers through higher monthly bills. Repealing the outdated 100-foot rule ends this outrageous subsidy to the gas industry, saves consumers money, and promotes the transition to greener, more affordable energy."
Advocates further say the use of fracked gas for heating and to generate electricity is driving an energy affordability crisis in New York - a state in which 1-in-4 New Yorkers are facing high energy burdens and paying over 6% of their annual income on energy bills. New York's energy affordability crisis is reaching new heights as the cost of gas utility bills is outpacing the rate of inflation nearly fourfold, and the cost of gas is driving up both gas rates and electric rates alike.
"New York's for-profit utilities have made a fortune by recklessly expanding fracked gas infrastructure and passing costs onto consumers in the form of rate increases," said Jessica Azulay, executive director at the Alliance for a Green Economy (AGREE). "That's led to an energy affordability crisis where families are going hungry and without medicine in order to pay their heating bills. By repealing the 100-foot rule, Gov. Hochul is helping to rein in utilities' excessive spending and profiteering, saving New Yorkers nearly $600 million annually. It's also an important part of the transition toward the cleaner, healthier, and more affordable energy system that New Yorkers have been expecting since passage of our Climate Act."
"By getting rid of the outdated 100-foot rule, Gov. Hochul just saved everyday New Yorkers from paying $600 million more on their energy bills every year – millions of dollars that would have been spent to needlessly expand the polluting gas system that is already too expensive," added Liz Moran, policy advocate at Earthjustice. "This moment would not be possible without the movement behind it, that beat back fossil fuel industry goliaths to fight for a cleaner, more affordable future. We applaud Gov. Hochul for delivering on her affordability promise to New Yorkers, and we look forward to returning to Albany next year to ask the legislature and the governor to do more to tackle the climate crisis and reduce energy costs."
No timeline has been given yet when the repeal will be enacted.
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