PSE&G looks to move forward on New Jersey gas modernization plan
Public Service Electric and Gas Company (PSE&G) announced a $1.875 billion settlement with New Jersey regulatory authorities to continue the replacement of aging gas pipes in the state.
PSE&G sought approval from the New Jersey Board of Public Utilities (BPU), the New Jersey Division of Rate Counsel, and other regulators to accelerate the replacement of the cast iron and unprotected steel gas mains throughout its service territory.
The settlement will allow PSE&G to replace 875 miles of gas mains and implement other improvements to its gas system over the five-year period. The settlement agreement is pending approval by the BPU.
“By year-end, we expect to have replaced hundreds of miles of aging gas pipes under the first phase of our Gas System Modernization Program,” David Daly, PSE&G president and chief operating officer, said. “This agreement means we can continue the next phase of this important work, which will result in improved safety and reliability of gas service and reduced methane emissions. It will also ensure we have the critical infrastructure needed to grow New Jersey’s economy for years to come.
The Environmental Defense Fund, Local Union 94 of the International Brotherhood of Electrical Workers, Local 855 of the United Association of Journeymen and Apprentices of the Plumbing and Pipefitting Industry, the Engineers Labor-Employment Cooperative, New Jersey Laborers-Employers Cooperation and Education Trust, Ferreira Construction, and Creamer-Sanzari Joint Venture also support the settlement.
“Together with our contractors, we have demonstrated we can manage a larger-scale, longer-duration program safely and cost-effectively,” Daly said. “We thank all of the parties involved for their thoughtful participation and review in this matter.”
The mains and service lines will be replaced with plastic piping, which is less likely to have leaks. The five-year program is also anticipated to create about 3,200 jobs.
