PSE&G, state reach tentative plan to replace aging gas lines

IndustriesAssociated Press

State regulators and New Jersey's largest utility have reached a tentative $905 million settlement to replace aging natural gas mains.

Public Service Electric and Gas in March sought to spend $1.6 billion over five years to replace 800 miles of cast iron and unprotected steel gas pipes and 55,000 unprotected steel service lines to homes and businesses.

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Under terms of the deal, PSE&G will replace up to 510 miles of gas mains and 38,000 service lines over a three-year period.

If approved by the state Board of Public Utilities, customers would fund the work through a surcharge and a rate increase. The utility says a typical residential customer will pay $4.82 more on their average monthly bill.

PSE&G serves 2.2 million customers in New Jersey.