PSE&G confident its $3.1B Energy Efficiency II filing will lower bills — and state’s emissions

The ask is substantial: $3.1 billion. But officials at Public Service Electric & Gas are confident the Clean Energy Future – Energy Efficiency II filing it made to the New Jersey Board of Public Utilities at the close of business Friday will accomplish two key goals:

  • Make residential and business dwellings more efficient, saving the owners of all buildings money on their energy bills;
  • Lower the state’s carbon footprint to meet the significant goals set by Gov. Phil Murphy’s administration.

The filing — which all seven utility companies in the state made — will serve as PSE&G’s plan for its energy efficiency programs during a 30-month span from January 2025 to June 2027.

The filing comprises 11 programs targeting diverse customer segments — including three new ones that are focused on building decarbonization, demand management and support for new technology adoption.

It also includes continued support for eight existing energy efficiency programs in residential, multifamily and commercial & industrial sectors, where a substantial majority of the program achievements occur.

PSE&G officials said the programs are expected to avert nearly 10 million metric tons of carbon dioxide emissions.

Kim Hanemann. (File photos)

“Today’s filing marks a pivotal moment in our journey towards a cleaner, more sustainable New Jersey,” PSE&G President and Chief Operating Officer Kim Hanemann said.

“Building on the success of our existing energy efficiency programs, this filing aligns with (Public Service Enterprise Group)’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 toward building decarbonization.

Karen Reif.

Karen Reif, vice president of renewables and energy solutions at PSE&G, obviously was thrilled.

“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,” she said. “Through the expansion of programs and the introduction of 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.”
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, Reif said.

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 will not necessarily be given all $3.1 billion. The request has to go through the regulatory process. But, regardless of the amount, Reif is confident it will help the state move closer to its clean energy goals.

“Everyone who participates will see a lower bill,” she said.