CPS Energy officials on April 19 announced that the utility received a $2.45 million federal grant, which will be used to replace aging local gas infrastructure around San Antonio.

The background

According to a news release, the grant comes from the U.S. Department of Transportation and the Pipeline and Hazardous Materials Safety Administration (PHMSA).

Funding under this program helps city-owned gas utilities to upgrade or replace portions of their pipeline systems. In 2023, CPS Energy applied for funding to replace more than five miles of steel gas pipeline on San Antonio’s west side.

CPS Energy officials said the portion of town where the federal grant will help to replace aging gas infrastructure is in the older part of the west side where 50% of households have incomes below 60% of the area’s median income, or poverty rates of 25% or more.

What they’re saying

This 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, according to CPS Energy officials.

“CPS Energy is proud to receive this grant from the Department of Transportation,” Rudy Garza, CPS Energy president and CEO, said in a statement. “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.”

Tristan Brown, deputy PHMSA administrator, said the grant program in his agency is unique in that it is aimed at helping to modernize older, higher risk and leaky pipes, resulting in improved safety, reduced environmental impacts, and savings for ratepayers.

“These new investments from [President Joe Biden’s] Bipartisan Infrastructure Law will also help create hundreds of good-paying pipeline jobs,” Brown said in a statement.