Five-year program would cost $540M annually, install 1,250 miles of new gas mains all told
Credit: PSE&G
Tom Johnson reports
for NJ Spotlight:
for NJ Spotlight:
Public Service Electric & Gas is seeking approval to expand its gas modernization program, asking the state to allow it to spend up to $2.7 billion over five years, or about $540 million annually.
In a filing with the New Jersey Board of Public Utilities, the state’s largest utility is hoping to accelerate the replacement of aging, cast-iron and unprotected steel pipes by installing 1,250 miles of new gas mains.
The proposal is part of an industry-wide effort to modernize gas pipelines, in some cases digging up mains installed more than a half-century ago. The investments come at a time when the cost does not sock ratepayers as much in their wallets because of historically low gas prices.
“We can get this done without a big pinch in customers’ pockets,’’ said Ralph LaRossa, president and chief operating officer of PSE&G.
State regulators also have backed the projects in the past, approving a series of investments by the gas utilities in recent years, including a $900 million, three-year program by PSE&G.
“A lot of utilities are doing this. It’s consistent with what is happening across the nation,’’ said Paul Patterson, an energy analyst with Glenrock Associates.
This past spring, PSE&G indicated it would seek approval for an expanded gas modernization program at an investors conference, saying it hoped to expedite the replacement of the aging pipelines.
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