Public Service Electric and Gas Company (PSE&G) has reached a $1.875bn settlement with the Staff of the New Jersey Board of Public Utilities (BPU), the New Jersey Division of Rate Counsel and other parties to continue the replacement of aging gas pipes.
The project involves replacement of aging gas pipes, supporting a safe, clean and reliable gas system well into the future.
The settlement agreement, however, is due to secure approval from the BPU.
In a filing with the BPU in July 2017, the utiligy had sought approval for the replacement of the cast iron and unprotected steel gas mains throughout its service territory.
PSE&G president and COO David Daly said: “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.
“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.”
Once the settlement is approved, the New Jersey-based regulated gas and electric delivery utility will replace 1408km of gas mains as well as make other improvements to its gas system over a period of five years.
As part of the five-year program, which is expected to create about 3,200 sustained jobs, the firm will replace mains and service lines with strong, durable plastic piping, which could reduce leaks and release methane gas.
The firm also plans to deploy new elevated pressure systems, which will enable the installation of excess flow valves that automatically shut off gas flow in case of service line damage.
The other parties supporting the settlement comprise 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, and the Engineers Labor-Employment Cooperative, among others.