NEWARK, N.J., July 27, 2017 /PRNewswire/ -- Public Service
Electric and Gas Company (PSE&G), New
Jersey's largest utility, today unveiled a proposal for the
second phase of its natural gas infrastructure modernization
program. If approved by the New
Jersey Board of Public Utilities (BPU), the program will
enable PSE&G to continue to accelerate the replacement of its
aging cast-iron and unprotected steel gas pipes – installing 1,250
miles of new gas mains over a five-year period. The proposed cost
is about $540 million a year, or
$2.7 billion in total.
"Through the success of our current modernization program, we've
demonstrated we can manage a larger-scale, longer-duration program
safely and cost-effectively," said Ralph
LaRossa, PSE&G president and COO. "Today's proposal
would give us the ability to replace more aging gas pipes at an
accelerated pace, ensuring we can continue to provide customers
with safe, reliable natural gas service now, and for many years to
come. The filing is also in line with the BPU's proposed rules on
supporting longer-term infrastructure programs."
PSE&G has just under 4,000 miles of cast-iron gas pipes,
which is more than any other utility in the nation. At the pace
proposed today, the utility can replace in 20 years its cast-iron
and unprotected steel pipes with new, modern plastic pipes.
Pipes installed before 1960 are the most leak-prone. They make
up 25 percent of PSE&G's network, yet account for 65 percent of
leaks, excluding third-party damages. The five-year pipe
replacement program would reduce greenhouse gas emissions equal to
taking 43,000 vehicles off the road.
Today's proposal is a continuation of work the utility is
performing under its Gas System Modernization Program that is
replacing 510 miles of gas mains over three years. Since
January 2016, PSE&G has replaced
286 miles of pipes. PSE&G employees and contractors have
performed the work safely, on schedule and on budget.
Benefits of the work include improved safety and reliability of
gas service, reduction in methane emissions and creation of jobs.
Since 2009, PSE&G's residential customers' gas heating bills
are down 50 percent because of the lower cost of natural gas.
"We can get this work done now without a big pinch in customers'
pockets," LaRossa said.
The upgrades will take place across PSE&G's service
territory in 11 counties, concentrating on urban areas established
in the early 1900s, where much of the utility's cast-iron and
unprotected steel gas pipes are located. PSE&G works with
municipalities to determine when replacements will be done.
The New Jersey BPU has proposed new rules that would permit
utilities to seek approval for infrastructure programs for up to
five years. The BPU announced the rules on June 30, two months after a public hearing at
which about two dozen contractors, suppliers, labor officials and
industry groups voiced support for longer-term utility
infrastructure programs.
"Longer-term replacement programs like this one enable us to
hire and train a stable workforce, knowing we will have sustained
work for them," said J. Fletcher Creamer
Jr., Chief Executive Officer of J.
Fletcher Creamer & Son. "The filing also supports
the key components of the recent BPU rule proposal that would allow
for up to five years of infrastructure investments – greater
efficiency in project planning, construction schedules, more jobs
and greater system resiliency and
reliability."
In addition to ensuring the continued safety and reliability of
the gas system, the proposed program would create almost 3,000 full
time jobs per year for the duration of the program.
"New Jersey's economic health
is uniquely tied to the health of its infrastructure," said
Raymond M. Pocino, Vice President –
Laborers' International Union of North
America (LIUNA) and Eastern Regional Manager. "Because of
this, the modernization of PSE&G's aging gas infrastructure
will be a long-term, positive investment that will increase the
state's job growth and yield both economic and environmental
benefits for years to come."
Enhanced safety is an important benefit of the work. When lines
are replaced, gas meters located inside the home or business are
moved outside. This allows PSE&G and other first-responders to
shut off gas more quickly in the event of an emergency, facilitates
routine safety inspections and provides easier access for meter
readings. Also, excess flow valves are installed in the individual
lines that run from the mains to customers. These valves
automatically shut off gas when a service line is damaged.
The upgraded lines will operate on elevated pressure to support
the expanded use of high-efficiency appliances, improving customer
satisfaction, and reducing customer's energy bills and emissions
through improved efficiency.
More information, including a video of how the work is
performed, is available at www.pseg.com/gaswork
Public Service Electric and Gas Company (PSE&G) is
New Jersey's oldest and largest
regulated gas and electric delivery utility, serving nearly
three-quarters of the state's population. PSE&G is the
winner of the ReliabilityOne Award for superior electric system
reliability. PSE&G is a subsidiary of Public Service
Enterprise Group Incorporated (PSEG) (NYSE: PEG), a diversified
energy company.
Visit PSEG
at:
www.pseg.com
PSEG on
Facebook
PSEG on Twitter
PSEG on
LinkedIn
PSEG blog, Energize!
Forward-Looking Statements
The statements contained in
this communication about our and our subsidiaries' future
performance, including, without limitation, future revenues,
earnings, strategies, prospects, consequences and all other
statements that are not purely historical, are "forward-looking
statements" within the meaning of The Private Securities Litigation
Reform Act of 1995. Such forward-looking statements are
subject to risks and uncertainties, which could cause actual
results to differ materially from those anticipated. Such
statements are based on management's beliefs as well as assumptions
made by and information currently available to management.
When used herein, the words "anticipate," "intend," "estimate,"
"believe," "expect," "plan," "should," "hypothetical," "potential,"
"forecast," "project," variations of such words and similar
expressions are intended to identify forward-looking
statements. Factors that may cause actual results to differ
are often presented with the forward-looking statements themselves.
Other factors that could cause actual results to differ materially
from those contemplated in any forward-looking statements made by
us herein are discussed in our Annual Report on Form 10-K and
subsequent reports on Form 10-Q and Form 8-K filed with the
Securities and Exchange Commission (SEC), and available on our
website: http://investor.pseg.com/sec-filings. All of the
forward-looking statements made in this communication are qualified
by these cautionary statements and we cannot assure you that the
results or developments anticipated by management will be realized
or even if realized, will have the expected consequences to, or
effects on, us or our business, prospects, financial condition,
results of operations or cash flows. Readers are cautioned not to
place undue reliance on these forward-looking statements in making
any investment decision. Forward-looking statements made in this
communication apply only as of the date hereof. While we may
elect to update forward-looking statements from time to time, we
specifically disclaim any obligation to do so, even in light of new
information or future events, unless otherwise required by
applicable securities laws.
From time to time, PSEG, PSE&G and PSEG Power release
important information via postings on their corporate website at
http://investor.pseg.com. Investors and other interested parties
are encouraged to visit the corporate website to review new
postings. The "Email Alerts" link at
http://investor.pseg.com may be used to enroll to receive
automatic email alerts and/or Really Simple Syndication (RSS) feeds
regarding new postings.
View original content with
multimedia:http://www.prnewswire.com/news-releases/pseg-proposes-five-year-program-to-continue-natural-gas-infrastructure-upgrades-300495553.html
SOURCE PSE&G