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Regulators approve PSE&G commitment of $1B to energy efficiency program

The centerpiece of Public Service Electric and Gas Co.’s (PSE&G) landmark Clean Energy Future proposal was approved last week by the New Jersey Board of Public Utilities (BPU). This decision clears the way for the state’s largest utility to commit $1 billion toward energy efficiency investments over the next three years, the largest commitment ever in New Jersey, which is expected to provide environmental benefits and reduce customer bills while creating jobs and boosting the state’s economy.

PSE&G’s $1 billion investment in energy efficiency, including customer programs and information technology platforms to support the energy efficiency investments, will drive significant progress toward achieving NJ Governor Murphy’s clean energy agenda. The program’s energy-saving measures, which include rebates for energy-efficient appliances and equipment, will help reduce New Jersey’s carbon emissions and help the state recover from the economic impacts of the COVID-19 pandemic. Here’s how:

  • It is expected to deliver $1 billion in net customer savings, while also creating 3,200 direct jobs and another 1,100 indirect jobs.
  • Approximately 70% of the program will be earmarked to help business customers lower their energy consumption and costs, enhancing New Jersey’s economic competitiveness.
  • PSE&G’s energy efficiency programs will help New Jersey avoid 8 million metric tons of carbon emissions through 2050.

“How appropriate that, during Climate Week, New Jersey has taken this vital step to pursue energy efficiency, the most cost-effective approach to addressing climate change,” PSEG Chairman, President and CEO Ralph Izzo said.

“Today’s decision is a tribute to Governor Murphy’s decisive leadership on climate change and will deliver the economic and environmental benefits of energy efficiency to our customers.”

Energy efficiency job training program

Last month, PSE&G launched an energy efficiency job training program and partnered with a network of community organizations and the state Department of Labor to recruit participants from New Jersey’s urban centers into the job training program – which will prepare up to 2,000 state residents for jobs with the contractors that will implement PSE&G’s energy efficiency programs.

Universal access to energy efficiency

PSE&G’s program offers residential and C&I customers rebates and other financial incentives to purchase energy-efficient lighting, HVAC equipment and smart thermostats. Customers also are eligible for free or affordable energy audits and energy efficiency kits. The program was designed with special emphasis on meeting the needs of low-income, multi-family and small business customers.

“We are committed to ensuring that all of our customers and the communities we serve get an opportunity to share in the benefits of this program, including lower energy bills, new jobs and cleaner air,” PSE&G President Dave Daly said. “PSE&G appreciates the efforts of BPU staff, New Jersey Rate Counsel and other parties involved to help move this exciting program forward.”

The approved program reflects the framework adopted by the BPU in June to implement energy efficiency throughout the state, which aligns utility incentives with the state’s goal of reducing energy consumption and environmental impacts.

“This is a great day for New Jersey and all of us who care about addressing climate change,” PSEG Chairman, President and CEO Ralph Izzo said. “Today’s decision will allow us to bring the benefits of energy efficiency to every customer and give them options to reduce their energy use, save money and shrink their carbon footprint. New Jersey now has the opportunity to be at the forefront of clean energy policy and be a role model for the nation.”

Watch PSEG’s Ralph Izzo explain more about the approval in the video below: