Public Service Electric & Gas Company (PSE&G;) is set to begin next phase of its Gas System Modernization Program (GSMP II), which involves replacement of gas mains in order to improve reliability and safety for gas customers.
The move follows approval of a multi-party settlement by the New Jersey Board of Public Utilities (BPU) to the firm.
As part of the GSMP II program, PSE&G will replace the old gas pipes to support a safe, clean and reliable gas system with an investment of $1.875bn.
Expected to create 3,200 jobs, the work involves replacing 875 miles of aging cast iron and unprotected steel gas pipes with strong, durable plastic piping.
Work also includes installation of excess flow valves to automatically shut off gas flow if a service line is damaged; and reduce greenhouse gas emissions.
PSE&G president and COO David Daly said: “Providing quality service requires keeping an eye on the future. This acceleration enhances safety, helps protect the environment and saves customers money over the long run.
“Our teams have already replaced hundreds of miles of aging gas infrastructure across the state, and with the approval of GSMP II, we can continue the momentum of our critical work to modernize our system, limit greenhouse gas emissions, maintain service reliability and create jobs and other economic benefits in New Jersey.”
As per the GSMP program, PSE&G is scheduled to replace more than 450 miles of high-risk pipe by December 2018.
The firm plans to commence work related to GSMP II in early 2019.
Daly added: “This period of low natural gas prices also provides a perfect opportunity to upgrade our gas system with minimal cost impact on customers. Since 2009, residential gas heating bills are down about 50%.
“We thank all of the parties involved for their thoughtful participation and review in this matter.”