Public Service Electric & Gas is seeking approval to expand its gas modernization program, asking the state to allow it to spend up to $2.7 billion over five years, or about $540 million annually.
In a filing with the New Jersey Board of Public Utilities, the state’s largest utility is hoping to accelerate the replacement of aging, cast-iron and unprotected steel pipes by installing 1,250 miles of new gas mains.
The proposal is part of an industry-wide effort to modernize gas pipelines, in some cases digging up mains installed more than a half-century ago. The investments come at a time when the cost does not sock ratepayers as much in their wallets because of historically low gas prices.
“We can get this done without a big pinch in customers’ pockets,” said Ralph LaRossa, President and Chief Operating Officer of PSE&G.
State regulators also have backed the projects in the past, approving a series of investments by the gas utilities in recent years, including a $900 million, three-year program by PSE&G.