Dive Brief:
- Public Service Electric and Gas Company (PSE&G) will invest $1.6 billion over the next five years to proactively modernize its gas systems, working to modernize 800 miles of cast iron and unprotected steel pipe.
- The utility will spend $320 million a year program, and noted that low commodity prices make this a good time to take on the upgrades.
- The plan calls for replacing an average of approximately 160 miles of cast iron and unprotected steel gas mains with plastic pipes over five years.
Dive Insight:
New Jersey's largest utility has announced a five-year, $1.6-billion upgrade to its gas infrastructure system, including replacing about 11,000 unprotected steel service lines to homes and businesses per year.
The utility requested the funding in a filing with the New Jersey Board of Public Utilities. The mains and service lines would be replaced with strong, durable plastic piping, which is much less likely to have leaks and release methane gas. New elevated pressure systems will also enable the installation of excess flow valves that automatically shut off gas flow if a service line is damaged, and better support the use of high-efficiency appliances.
“While our cast iron and unprotected steel gas pipes represent less than 30% of our infrastructure, they account for 80% of distribution systems leaks each year, excluding third-party damages,” said Ralph LaRossa, PSE&G president and COO.
Pointing to lower gas bills, LaRossa said it makes sense to make these added investments now. Since 2008, residential gas heating bills are down 44% because of the lower cost of natural gas supply. “We are in a time of unprecedented low interest rates and natural gas prices,” LaRossa said. “The timing is right to make these infrastructure investments.”