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PSE&G to launch 2nd phase of pipe replacement program

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PSE&G to launch 2nd phase of pipe replacement program

Public Service Electric and Gas Co. is set to implement the second phase of its gas system modernization program following the approval of the $1.88 billion settlement agreement with the New Jersey Board of Public Utilities Staff and the New Jersey Division of Rate Counsel.

The Public Service Enterprise Group Inc. subsidiary on July 27, 2017, proposed a plan to modernize its natural gas infrastructure, allowing for the installation of about 1,250 miles of new gas mains. The program would allow the company to replace all of its cast iron and unprotected steel pipe within 20 years.

The utility expects to complete the replacement of about 450 miles of old pipes by December, under the first phase of the program, with neighborhood work expected to begin in 2019 as part of the program's second phase.

Under the second phase of the program, Public Service Electric and Gas would, among other things, upgrade about 875 miles of cast iron and unprotected steel gas pipes to more durable plastic piping over a period of five years. Excess flow valves that automatically shuts off gas flow when a service line is damaged will also be installed, according to a May 22 news release.

Within the five years, the average residential customer's annual bill is expected to increase by less than 2%, or about $17, per year.

With almost 4,000 miles of cast iron lines, Public Service Electric and Gas has more cast iron pipe than any other utility in the U.S. Pipelines installed prior to 1960 comprise 25% of the company's system but account for 65% of leaks not caused by excavation damage, the company noted.