Bill to slash gas delivery fees heads to Gov. Hochul's desk
Homeowners say the exemption keeps their bills rising, even as they use less gas.
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A bill that could lower utility bills for New Yorkers is now on Gov. Kathy Hochul’s desk. The measure, A8888, would stop customers from paying for new gas lines built by utilities such as Con Edison and National Grid, ending the so-called 100-foot exemption.
Homeowners say the exemption keeps their bills rising, even as they use less gas.
Brooklyn resident Ken Schles said his delivery fee was three times higher than the charge for the gas itself.
“It’s outrageous. I shouldn’t be subsidizing National Grid’s business model,” he said.
Under current rules, when utilities build a new gas line within 100 feet of an existing one, the cost is passed to customers through delivery fees. Schles said his bills are “through the roof” and called the practice “highway robbery.”
He noted he is not against paying for infrastructure. Schles installed solar panels on his roof to cut electric costs. But he said paying for new gas lines that raise his bills does not make sense.
Some developers are also pushing for the governor to sign the bill.
Alloy LLC built the first all-electric skyscraper in downtown Brooklyn, 505 State St.
Partner David McCarty tells News 12 that investing in gas lines now is akin to investing in phone lines after the Internet boom.
“This isn’t the future, it’s right now. We have dozens of these buildings now in New York that are all electric,” he said, adding that even for large-scale projects, electric is now cheaper to build and run.
"There are many complicated parts of the climate crisis, and building new units this is not one of them," he said.
Tenant Valeria Rincon questioned why gas lines are treated differently than electric connections, calling the exemption an unasked-for subsidy that falls on the backs of rate payers, adding she has not missed her gas bill since moving into the all-electric building.
“No one foots the bill for buildings to get a connection to the electric system. So why is there an exception for the gas system?” she said.
News 12 reached out to the utility companies. Con Edison said in a statement that "Con Edison recognizes the need to advance the clean energy future, and we support the legislative repeal of the 100-foot rule entitlement."
National Grid said: "We do not support the repeal of line extension allowances to assist customers in connecting to our gas network." It added that the repeal would "discourage oil to gas conversions for properties."
Hochul’s office said she is reviewing the legislation.
