PSE&G Files Clean Energy Future – Energy Efficiency II Program
Comprehensive Energy Efficiency II Program Targets Reduction of Nearly 10 Million Metric Tons of Carbon Emissions, Emphasizing Lower Energy Usage and Costs for Participating Customers
Today, PSE&G submitted its Clean Energy Future – Energy Efficiency II (“CEF-EE II”) filing to the NJ Board of Public Utilities (NJ BPU). This cycle of the State’s energy efficiency programs will span the 30-month period from January 2025 through June 2027. The proposal aligns with the BPU’s direction to file today for approval of Energy Efficiency, Building Decarbonization, and Demand Response programs.
The $3.1 billion CEF-EE II filing comprises 11 programs targeting diverse customer segments. It includes continued support for eight existing energy efficiency programs in residential, multi-family, and commercial & industrial sectors, where a substantial majority of the program achievements occur. The filing also introduces three new initiatives focused on building decarbonization, demand management and support for new technology adoption. The combined lifetime electric and gas energy savings from PSE&G’s programs are expected to avert nearly 10 million metric tons of carbon dioxide emissions.
“Today’s filing marks a pivotal moment in our journey towards a cleaner, more sustainable New Jersey,” remarked PSE&G President and COO Kim Hanemann. “Building on the success of our existing energy efficiency programs, this filing aligns with PSEG’s Powering Progress vision for a future where people use less energy, and it’s cleaner, safer and delivered more reliably than ever.”
The CEF-EE II program is poised to maintain New Jersey’s trajectory toward realizing the goals outlined in the 2018 Clean Energy Act. These goals include attaining energy savings of 0.75% per year for natural gas and 2% per year for electricity within five years of implementing the energy efficiency programs. Furthermore, the program serves as a starting point, seeking to align with the mandates specified in Executive Order 316, providing incentives for the transition towards building decarbonization.
These investments in clean energy are also expected to generate economic benefits for New Jersey residents and businesses, with an anticipated creation/maintenance of 5,500 direct jobs annually. Additionally, as part of its filing, PSE&G will continue to implement its award-winning Clean Energy Jobs Program and expand its job training to include electrification measures, such as heat pump installation. As of October 2023, this program has already facilitated the hiring of more than 2,400 New Jersey residents, helping participants embark on exciting career paths in New Jersey’s clean energy industry.
While the overall program investments will lead to reduced energy usage and costs for participating customers, if approved, on average, the typical residential PSE&G customer could expect to see an increase of $3.05 on their average monthly electric bill, approximately a 2.6% increase, while gas heating customers could expect an average monthly increase of $2.74, approximately a 2.9% increase, from the start of the program through 2038.
“PSE&G’s CEF-EE II program is designed to support our state’s clean energy goals by cost-effectively reducing emissions and encouraging customer engagement in minimizing energy usage and costs,” stated Karen Reif, vice president of Renewables and Energy Solutions at PSE&G. “Through the expansion of programs and the introduction new energy efficiency initiatives, we are further shaping a cleaner, more sustainable future that will strengthen the state’s position as a clean energy leader.”
The current energy efficiency programs have received over 40 industry awards, acknowledging excellence in program design, marketing, and best practices since 2021. Notably, for the second consecutive year, PSE&G was honored with the ENERGY STAR® Partner of the Year Award in the Energy Efficiency Program Delivery category by the U.S. Environmental Protection Agency and the U.S. Department of Energy.
This filing is designed to align with the BPU’s energy efficiency framework and New Jersey’s clean energy targets, and thus reflects a significant expansion of energy efficiency investment as compared to prior programs. Commitments for the proposed $3.1 billion program would begin in January 2025 and be made over the 30-month period of the program with capital investments beginning in 2025 and continuing for six years. As a result of this proposed program, and PSE&G’s recent GSMP 2 extension, PSE&G’s previously estimated 2023-2027 capital investment range of $15.5 billion to $18 billion will be increased to an updated range of $16 billion to $18.5 billion.
For more information, click here: PSE&G Clean Energy Future – Energy Efficiency (CEF-EE II) Supplemental Summary
Article courtesy of our Partners at PSE&G.