NEWARK, N.J. (AP) — New Jersey’s largest utility says it has reached a $1.2 billion settlement to protect and strengthen its electric and gas systems from storms.
Public Service Electric & Gas had sought to invest $2.6 billion during five years to harden its systems, with the option to spend $3.9 billion over ten years.
PSEG chairman and CEO Ralph Izzo, in a statement, says under the settlement approved by Board of Public utilities’ staff members the utility would upgrade substations that were flooded in Superstorm Sandy and Hurricane Irene. Izzo also says the utility can replace 250 miles of cast iron gas pipes and use technology to help speed power restoration.
Senior citizens groups voiced concerns about the costs.
The settlement will be reviewed before it’s submitted to the BPU for final approval.