CPS Energy receives $2.45 million grant to replace aging gas infrastructure

SAN ANTONIO (UI) — CPS Energy has been awarded a $2.45 million grant from the Pipeline and Hazardous Materials Safety Administration (PHMSA) to replace aging gas infrastructure in San Antonio's West Side community.

This grant, awarded under the Natural Gas Distribution Infrastructure Safety and Modernization (NGDISM) program, targets the replacement of aging local gas infrastructure, particularly focusing on over five miles of steel gas pipeline in the western area of the city.

“This first-of-its-kind infrastructure grant program helps modernize older, higher risk, leaky pipes–improving safety, reducing environmental impacts, and saving consumers money on their energy bills” said PHMSA Deputy Administrator Tristan Brown.

The NGDISM program, established under the IIJA, aims to allocate up to $200 million annually from 2022 to 2026 for the enhancement of natural gas systems across municipally owned local distribution gas utilities. Objectives of the program include improving safety, protecting the environment, benefiting underserved communities, stimulating economic growth, and creating infrastructure-related jobs.

“This grant will provide welcome assistance to help ensure safety and guard our environment by upgrading CPS Energy’s natural gas pipeline infrastructure. Keeping the utility’s infrastructure in good condition is a crucial part of protecting our community and maintaining an efficient distribution system,” said Mayor Ron Nirenberg.

Infrastructure that will be replaced as part of this grant is located on the west side of town in a community with 50% of households in that community having incomes below 60% of the area’s median incomes, or poverty rates of 25% or more. The infrastructure being replaced is part of CPS Energy’s efforts to modernize gas infrastructure in need of upgrades. The project will improve safety, performance and reliability of the utility’s gas system and is expected to be completed by the end of this year.

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