NJ Agencies Fight Gas Pipeline Expansion

NEW JERSEY — Two New Jersey state agencies are joining together to fight the expansion of a natural gas pipeline in state.

The New Jersey Board of Public Utilities and the New Jersey Rate Counsel submitted a filing to the Federal Energy Regulatory Commission containing a study that says the state has enough gas to last through 2030 and therefore, does not need to expand the pipeline.

The analysis of gas demand showed that NJ would be fine in both normal winter weather and colder-than-normal winter weather, according to London Economics.

This is significant as Transcontinental Gas Pipe Line Company proposed the Regional Energy Access Expansion project (REAE project), which would enter service in the 2023/24 winter season. This project would expand the existing pipeline and deliver 829,400 dekatherms per day, according to Transcontinental.

Transcontinental said that the REAE project is needed because the state needs additional pipeline capacity to meet a projected increase in gas demand, according to a study the company submitted by Levitan & Associates.

The expansion would build additional pipeline segments, modify existing segments of the pipeline, and build, modify and uprate several compressors along various pipeline segments. It would have stations in both Somerset and Middlesex counties, a new facility in Gloucester County along with various areas throughout Pennsylvania.

This is supported by NJ's gas utilities. New Jersey Natural Gas said in a filing, "by utilizing Transco’s existing assets to the greatest extent possible, the REAE Project will minimize environmental impacts while meeting the Northeast region’s growing demand for natural gas."

BPU and Rate Counsel reject this, saying that they together represent NJ consumer interests, and believe that this project would burden residents with "unneeded natural gas capacity."

"No other party can represent these interests as well as the Board and Rate Counsel, who are charged with ensuring that natural gas utilities operate in the public interest and that New Jersey Ratepayers are charged just and reasonable rates," the agencies said in their filing.

They cited the London Economics study as evidence towards the expansion being unnecessary.

Nearly 40 environmental groups joined together to ask Gov. Phil Murphy and NJDEP Commissioner Shawn LaTourette to reject the project, according to a news release from the New Jersey League of Conservation Voters.

"This project represents an unnecessary health and public safety risk to families and businesses in the communities surrounding the dirty fossil fuel compressors, many of whom have already been forced to bear the brunt of climate change and pollution," said Ed Potosnak, Executive Director of New Jersey League of Conservation Voters. "These unneeded pipelines and compressor stations would also continue our dependence on dirty fossil fuels and slow efforts towards converting to renewable energy, something Governor Murphy has emphasized is a priority."

Climate activists called the expansion unnecessary, citing the BPU study as evidence and calling it a step in the wrong direction.

"This project would result in massive greenhouse gas emissions and threaten air quality in overburdened communities," said Tom Gilbert, Co-Executive Director of NJ Conservation Foundation. "It is at odds with New Jersey's clean energy future and NJBPU's study showing that there is already more than enough gas capacity to meet peak demand over the next decade. Ratepayers should not be saddled with the cost of this unneeded, polluting project."