Rudy D. Garza,
President & Chief Executive Officer (CEO)
April 19, 2024 (San Antonio, TX) – CPS Energy announced today that they are the recipient of a $2.45 million grant aimed at replacing aging local gas infrastructure from the Department of Transportation (DOT) and the Pipeline and Hazardous Materials Safety Administration (PHMSA). Under the PHMSA umbrella is the first ever Natural Gas Distribution Infrastructure Safety and Modernization (NGDISM) grant program. Funding under this program exclusively helps municipally owned local distribution gas utilities upgrade or replace portions of their pipeline systems. In 2023, CPS Energy applied for funding to replace over five miles of steel gas pipeline in the western portion of the city.
“CPS Energy is proud to receive this grant from the Department of Transportation,” said Rudy D. Garza, President & CEO of CPS Energy. “We are committed to upgrading infrastructure for our community which will help us continue to serve them with the reliable and safe service they expect from CPS Energy.”
The Infrastructure Investment and Jobs Act (IIJA) was passed by Congress in November 2021, providing commitment for the most significant investment in the country’s infrastructure in more than 50 years. The NGDISM plans to award up to $200 million for each fiscal year from 2022-2026. Objectives from this grant include:
“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. “These new investments from the President’s Bipartisan Infrastructure Law will also help create hundreds of good-paying pipeline 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.
