OREANDA-NEWS. Elizabethtown Gas, a subsidiary of AGL Resources (NYSE: GAS), is proposing a comprehensive plan that will allow the company to continue its investment in the replacement of aging pipeline infrastructure, and support the company's No. 1 priority of maintaining a safe and reliable natural gas distribution system. Elizabethtown Gas is seeking approval from the New Jersey Board of Public Utilities (NJBPU) to invest more than $1.1 billion over a 10-year period to replace 630 miles of pipeline. The proposed plan, known as SMART (Safety, Modernization and Reliability Tariff), aims to remove all aging cast iron and steel pipelines by 2027.

Enhancing and upgrading natural gas infrastructure is essential to meeting the growing demand for natural gas, as well as reliably delivering the fuel source to more than 282,000 Elizabethtown Gas customers in more than 85 communities.

"Our continued investment in critical infrastructure is vital in meeting our obligation to provide natural gas service in the safest, most reliable manner," said Brian MacLean, president of Elizabethtown Gas. "While we have made significant strides in modernizing our distribution system, SMART will help us meet the needs of our customers now and into the future."

Specifically, the SMART program includes the strategic elimination of 630 miles of vintage cast iron, steel and copper service lines, as well as 240 regulator stations associated with Elizabethtown Gas' low-pressure distribution system. In addition, excess flow valves will be installed on all new service lines and natural gas meters will be moved to the outside of homes and businesses as part of this program.

The plan supports the economic and environmental goals envisioned in the New Jersey Energy Master Plan, which also includes the overall reduction of greenhouse gas emissions.

Since 2004, Elizabethtown Gas has invested approximately $550 million under various programs to replace more than 200 miles of vintage infrastructure, mostly cast iron and bare steel, and provided reinforcements to the distribution system.

If approved, a customer's yearly bill is expected to increase approximately 2-3 percent annually over the 10-year period currently proposed under SMART.