Upgrading pipelines enhances safety and
reduces methane emissions
NEWARK, N.J.,
Oct. 11,
2023 /PRNewswire/ -- The New Jersey Board of Public Utilities today
approved a settlement that will enable PSE&G to continue
modernizing aging natural gas pipes in 2024 through 2025, enhancing
safety and reliability and helping New
Jersey meet its clean energy goals. With this extension of
the second phase of PSE&G's Gas System Modernization Program
(GSMP), the state's largest utility expects to invest $902 million over two years, maintaining hundreds
of well-paying jobs and contributing to New Jersey's economy.
The extension allows PSE&G to continue to update its
existing gas distribution system to improve reliability and reduce
greenhouse gas emissions by approximately 54,000 metric tons CO2e,
by replacing at least 400 miles of aged pipes with modern ones.
Although nearly 1,800 miles of cast iron and unprotected steel
mains have been replaced in recent years, PSE&G remains the
nation's utility with the largest number of aging cast iron pipes,
much of which is 70 to 100 years old.
"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 chief
operating officer, PSE&G. "Natural gas has 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 benefits of GSMP include:
- Prioritizing and replacing pipelines most prone to leaks,
including many in municipalities that have a significant number of
overburdened communities;
- Maintaining the infrastructure through upgraded equipment, such
as modern regulators and the installation of excess flow valves,
with the aim of enhancing safety;
- Upgrading to higher pressure during replacement enabling
customer use of higher efficiency and more environmentally-friendly
appliances;
- Immediate reduction of leaks by installation of new pipes that
can also deliver emerging lower-carbon alternative fuels;
- Ensuring our customers' power sources remain affordable and
diversified; and
- Realizing the benefits of maintaining jobs and vendor
relationships through the continuity of the program.
In 2014, PSE&G began to accelerate the updating of its gas
system by replacing aged pipes with state-of-the-art gas lines. We
are about a third done, having replaced 1,450 miles of gas lines.
We have also reduced methane emissions by approximately 300,000
metric tons CO2e from 2011 to 2022 – the equivalent of taking
65,000 cars off the road. The second phase of GSMP was completed
earlier this year and reduced PSE&G's gas system methane
emissions by approximately 22% from 2018 levels.
The updated lines are also more reliable. When Tropical Storm
Ida caused widespread flooding in September
2021, 90,000 gas customers were spared shutoffs due to our
modernizing efforts.
PSE&G residential gas bills are now approximately 35 percent
lower than in 2008, including February
1, March 1 and October 1 gas supply price reductions reflecting
lower natural gas supply costs. The extension is forecasted to
increase monthly average gas bills for the typical residential gas
customer about 3.8% percent or $3.50
per month.
As part of this settlement, PSE&G also agreed to defer
action on its third phase of GSMP, with the parties to that filing
to reconvene on it by no later than January
31, 2025. Work covered under the third phase, if approved,
would be expected to commence in January
2026.
PSE&G
Public Service Electric & Gas
Co. is New Jersey's oldest and
largest gas and electric delivery public utility, as well as one of
the nation's largest utilities. PSE&G is the 2022 Edison Award
recipient from the Edison Electric Institute. PSE&G has won the
ReliabilityOne® Award for superior electric system reliability in
the Mid-Atlantic region for 21 consecutive years. For the second
consecutive year, PSE&G is the recipient of the ENERGY STAR
Partner of the Year award in the Energy Efficiency Program Delivery
category. In addition, J.D. Power named PSE&G
number one in customer satisfaction for both Residential Electric
and Natural Gas Service in the East among Large Utilities.
Visit PSEG
at:
www.pseg.com
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Facebook
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LinkedIn
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FORWARD-LOOKING STATEMENTS
Certain of the
matters discussed 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 constitute
"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 filings we make with the United States
Securities and Exchange Commission (SEC), including our Annual
Report on Form 10-K and subsequent reports on Form 10-Q and Form
8-K. These factors include, but are not limited to:
- any inability to successfully develop, obtain regulatory
approval for, or construct transmission and distribution, and our
nuclear generation projects;
- the physical, financial and transition risks related to climate
change, including risks relating to potentially increased
legislative and regulatory burdens, changing customer preferences
and lawsuits;
- any equipment failures, accidents, critical operating
technology or business system failures, severe weather events, acts
of war, terrorism or other acts of violence, sabotage, physical
attacks or security breaches, cyberattacks or other incidents that
may impact our ability to provide safe and reliable service to our
customers;
- any inability to recover the carrying amount of our long-lived
assets;
- disruptions or cost increases in our supply chain, including
labor shortages;
- any inability to maintain sufficient liquidity or access
sufficient capital on commercially reasonable terms;
- the impact of cybersecurity attacks or intrusions or other
disruptions to our information technology, operational or other
systems;
- a material shift away from natural gas toward increased
electrification and a reduction in the use of natural gas;
- failure to attract and retain a qualified workforce;
- inflation, including increases in the costs of equipment,
materials, fuel and labor;
- the impact of our covenants in our debt instruments and credit
agreements on our business;
- adverse performance of our defined benefit plan trust funds and
Nuclear Decommissioning Trust Fund and increases in funding
requirements and pension costs;
- fluctuations in, or third party default risk in wholesale power
and natural gas markets, including the potential impacts on the
economic viability of our generation units;
- our ability to obtain adequate nuclear fuel supply;
- changes in technology related to energy generation,
distribution and consumption and changes in customer usage
patterns;
- third-party credit risk relating to and purchase of nuclear
fuel;
- any inability to meet our commitments under forward sale
obligations and Regional Transmission Organization rules;
- reliance on transmission facilities to maintain adequate
transmission capacity for our nuclear generation fleet;
- the impact of changes in state and federal legislation and
regulations on our business, including PSE&G's ability to
recover costs and earn returns on authorized investments;
- PSE&G's proposed investment programs may not be fully
approved by regulators and its capital investment may be lower than
planned;
- our ability to advocate for and our receipt of appropriate
regulatory guidance to ensure long-term support for our nuclear
fleet;
- adverse changes in and non-compliance with energy industry
laws, policies, regulations and standards, including market
structures and transmission planning and transmission returns;
- risks associated with our ownership and operation of nuclear
facilities, including increased nuclear fuel storage costs,
regulatory risks, such as compliance with the Atomic Energy Act and
trade control, environmental and other regulations, as well as
financial, environmental and health and safety risks;
- changes in federal and state environmental laws and regulations
and enforcement;
- delays in receipt of, or an inability to receive, necessary
licenses and permits and siting approvals; and
- changes in tax laws and regulations.
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 of
this communication. 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.
The forward-looking statements contained in this communication
are intended to qualify for the safe harbor provisions of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended.
CONTACT:
Media Relations
Lauren Ugorji
973-430-7734
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SOURCE PSEG