New York Gov. Kathy Hochul repealed a decades-old rule that had required utilities to provide free or subsidized natural-gas hookups for some new customers, a change announced in late 2025. The policy had shifted the cost of extending gas lines onto existing ratepayers’ bills, and state leaders and advocates say ending it should reduce incentives to expand fossil-fuel infrastructure as New York pursues climate goals. Supporters framed the move as a rare, concrete win for cutting long-lived emissions sources in buildings, while acknowledging it also changes the economics of how homes and businesses choose heating and cooking systems.

Gov. Kathy Hochul’s repeal of a rule that allowed for free gas hookups for some new customers was applauded by climate activists and other supporters.

Highlights:

  • Ratepayer cross-subsidy: The repealed provision increased gas bills for millions of New Yorkers by spreading the cost of certain new line extensions across existing customers, rather than charging the new customer up front.
  • Advocates’ reaction: Climate advocates and allied groups celebrated the decision as an unusual piece of “good news” in state climate policy, arguing it removes a structural incentive to keep adding gas connections.
  • Buildings and emissions: Supporters say the change is designed to curb future fossil-fuel use by making new gas service less automatically attractive compared with non-combustion alternatives for heat and cooking.
  • Policy mechanism: The action ended what local coverage described as the “100-foot rule,” a longstanding approach to funding short gas-line extensions to new customers through utility rules rather than direct customer payment.

Perspectives:

  • Gov. Kathy Hochul’s administration: The state repealed the longstanding rule to stop shifting hookup costs onto other gas customers and to align utility incentives with efforts to curb fossil-fuel use. (The New York Times)
  • New York climate advocates: Advocates praised the repeal as a tangible step that makes it harder to expand gas infrastructure and easier to steer new buildings toward cleaner options. (Gothamist (via Google News))

Sources:

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