State utility regulators ruled Friday that Vermont Gas Systems can continue to build its pipeline from Chittenden County to Addison County despite substantial cost overruns.
Vermont Gas spokesman Steve Wark said the company was pleased by the decision.
"I think it’s reflective of the benefits that the project still holds for Vermonters," he said. "So for instance, even after the increase in costs, Addison County residents will save $195 million of energy over the next 20 years."
Opponents had asked the Public Service Board to reopen the case after the project cost estimates jumped from $86 million to $121 million.
But in its ruling, the board said the pipeline is needed and is still good for the state, despite the 40 percent cost increase.