PSE&G announced Wednesday it received approval from the New Jersey Board of Public Utilities (NJBPU) that will enable the utility to continue the modernization of its aging gas systems in 2024 and through 2025.
The state’s largest utility said that with the extension of the second phase of its Gas System Modernization Program (GSMP), it expects to invest $902 million over two years, which will maintain hundreds of good-paying jobs toward the state economy.
The program allows for the continued replacement of some 400 miles of aging cast iron pipes, many of which are 70 to 100 years old, as PSE&G works to improve reliability while reducing greenhouse gas emissions.
While PSE&G has replaced nearly 1,800 miles of cast iron and unprotected steel mains in recent years, it remains the nation’s utility with the largest number of aging cast iron pipes.
The company says the GSMP is beneficial in a number of ways, such as:
“Continuing this work that reduces methane emissions and enhances the reliability of our gas system is a critical step to realizing our Powering Progress vision for customers,” said Kim Hanemann, president and CEO, PSE&G, in a press release. “Natural gas been the most affordable heating option for millions of New Jersey customers for years. We’re pleased to continue our balanced approach to decarbonization while meeting today’s energy demand.”
The utility also noted that as part of the settlement with the NJBPU it will defer action on the third phase of its GSMP, with the parties agreeing to reconvene on it by no later than Jan. 31, 2025. If approved, work covered under the third phase would be slated to start in January 2026.