New Jersey's largest utility has received approval from a state regulatory agency to expedite the replacement of aging cast iron and steel gas lines.
Officials with Public Service Electric and Gas say the state's Board of Public Utilities passed a $905 million plan on Monday in Trenton to replace more than 500 miles of gas mains over the next several years with plastic.
The project will raise gas rates by an average of 1.5 percent each year for four years.
“Accelerated replacement of our aging gas pipes ensures we can support a safe, clean and reliable gas system well into the future,” said PSE&G president and COO Ralph LaRossa. “Since 2009, our residential customers’ gas heating bills are down 47 percent because of the lower cost of natural gas supply. The timing is right to accelerate this work -- while gas prices remain low.”
Under an agreement, methane emissions have to be reduced by at least 20 percent each year for three years wherever new piping is installed.
A spokeswoman says the company plans to have a work schedule set in January. Work will begin after the ground thaws.
