PSE&G Follows State Policy for a New Era of Affordable, Clean, Reliable, Resilient and Safe Energy
Clean Energy Future Program Includes Energy Efficiency, Electric Vehicle Charging, Energy Storage and the Energy Cloud Designed to Improve Services, Save Customers Money, and Support NJ’s Clean Energy Goals
Proposed Investments Keep Bills Lower Than They Were 10 Years Ago
Entire program expected to produce $7.4 billion in savings for customers
40 million tons of carbon to be reduced
(NEWARK, N.J. – Sept. 27, 2018) – Public Service Electric and Gas Co. (PSE&G) on Wednesday proposed a Clean Energy Future program (CEF) with the New Jersey Board of Public Utilities to make critical investments in clean energy and advanced technology that would propel New Jersey’s role as a national leader in energy efficiency and jump-start other clean energy priorities.
“PSE&G’s proposed investments support New Jersey’s clean energy goals, while putting our customers’ needs at the forefront,” said Ralph Izzo, chairman, president and chief executive officer of Public Service Enterprise Group. “The investments aim to keep bills lower than they were 10 years ago. In addition to providing safe, highly reliable service, utilities need to help their customers use less energy. This may be the only industry in America making a business case to sell you less of its product.”
The filing supports the state’s progressive clean energy leadership and is consistent with the Clean Energy legislation recently signed into law by Governor Murphy, which requires utilities to reduce customers’ annual electric and gas consumption by 2 percent and 0.75 percent, respectively.
“Helping our customers use energy more efficiently is the only way to simultaneously lower bills, clean the environment and create jobs,” Izzo added.
The proposal will also put New Jersey on the path to meeting the aggressive energy storage goals set forth in the law, and supports the state’s policy to bolster electric vehicles (EVs), make the electric grid more resilient, and improve storm restoration response. PSE&G shares the state’s vision with respect to these important issues.
“Clean Energy Future is expected to save customers about $7.4 billion,” said Dave Daly, PSE&G president and chief operating officer.
“The lion’s share of the investments will provide our customers with access to energy savings opportunities from 22 energy efficiency programs. These programs alone are expected to produce $5.7 billion in savings for participating customers over the program’s lifetime. Utilities can and should ensure that the benefits of energy efficiency are available to all customers, regardless of income. Energy efficiency will help customers use less energy, ensure the energy they use is cleaner and lower their monthly bills.”
If approved, CEF will build on PSE&G’s momentum to modernize its utility infrastructure, save customers billions of dollars on their energy bills, improve energy efficiency, reduce emissions, create thousands of jobs and have a multibillion-dollar impact on the local economy during the next 20 years.
CEF also includes a plan to implement an advanced technology platform, called the Energy Cloud, which would modernize the way the utility serves customers in the future. When fully implemented, the Energy Cloud is expected to save customers another $1.7 billion over 20 years.
Investments and customer benefits
CEF represents a six-year commitment for energy efficiency, EVs, energy storage and the Energy Cloud program, which would create an advanced technology network and upgrade 2.2 million electric meters to smart meters.
CEF will introduce exciting new opportunities for customers including electric school buses, which are healthier for children, and smart meters, which provide real-time data and enable faster outage restoration. Businesses, such as hospitals, that have participated in PSE&G’s energy efficiency programs to date have seen significant savings, up to $1.5 million a year. The programs will also reduce carbon dioxide emissions by about 40 million tons over the lifetime of the programs, equivalent to removing about 380,000 cars annually by 2025, growing to about 800,000 cars annually by 2035.
“Clean Energy Future is a win-win-win for New Jersey,” Daly said. “It’s aligned with what our customers want. It’s aligned with the Governor’s energy policy. And it benefits our state’s economy.
“We have already heard from a diverse and growing list of New Jersey organizations that support the goals of PSE&G’s Clean Energy Future programs,” he added. “So far, we have received support from more than 80 organizations from across New Jersey, representing environmental advocates, clean energy service providers, large and small businesses, labor organizations, elected officials, nonprofit agencies and community leaders…and more support is arriving every day.”
The nearly $2.8 billion energy efficiency plan includes $2.5 billion of investment and $283 million in other program costs. It will allow customers to use up-front rebates and other financial incentives to purchase more efficient appliances, smart thermostats and other equipment; get free and affordable energy audits, reports and system design advice; get free and low-cost energy efficiency kits, tools and installations; and seed funding for new energy-saving techniques. The plan has a special emphasis on hard-to-reach customers, such as low-income, multi-family, small business and local governments. One program, for example, will upgrade municipal streetlights in PSE&G’s service territory with LED lights.
The $364 million EV program includes approximately $261 million of investment and $103 million in other program costs. The proposal jump-starts broader use of EVs by supporting nearly 40,000 EV chargers, the bulk of which are for residential use. It includes mixed-use and public DC fast-charging. CEF also supports EV innovation, including custom projects for airports, ports and other transit facilities and grants for school districts to buy and operate electric school buses.
Energy storage provides more flexibility and efficiency in electric systems, makes it easier to integrate renewables and provides backup so there are fewer outages. The $180 million proposal includes approximately $109 million of investments and $71 million in other program costs. It calls for 35 megawatts of energy storage capacity over six years through five programs: solar smoothing, distribution deferral, mobile storage for outage management, microgrids for critical facilities and peak reduction for public sector facilities. CEF will begin to put New Jersey on track to meet the Clean Energy legislation’s goal of 600 megawatts of energy storage by 2021 and 2,000 megawatts by 2030.
PSE&G’s Energy Cloud will produce an estimated $1.7 billion in customer savings and operational benefits over 20 years, more than double the cost. The nearly $800 million program includes an investment of approximately $721 million and $73 million in other program costs. It improves reliability, improves customer service and reduces the carbon footprint. This major undertaking includes a plan to educate customers about the many benefits of smart meters. If approved, PSE&G intends to install the smart meters by 2024.
PSE&G CLEAN ENERGY FUTURE
New Jersey has the opportunity to be at the forefront of clean energy policy and a role model for the nation. Governor Murphy’s progressive goals have opened the door for utilities, energy/environmental organizations and corporations to work together to develop, support and invest in transformative clean energy solutions.
As a first step, PSE&G has outlined its vision for a Clean Energy Future, with proposed programs that will help meet the growing consumer desires to use less energy, to ensure the energy they use is cleaner, and to lower their bills by managing the energy they use. If we are successful, we can save money for customers, create well-paying jobs for the people who will implement these programs, create wider use of clean energy sources and more economic growth.
However, we need to work together across the state with both public and private entities to make this a reality and advance Governor Murphy’s energy and environmental goals. The following organizations and individuals are supportive of PSE&G’s clean energy vision and directive reflective of the proposed wide-ranging blueprint for the future of energy in New Jersey.
Peter Harb, Key Account Manager
Advanced Solar Products
Lyle Rawlings, President
A.F. Mensah, Inc.
Drew Adams, Head of Strategy
Alliance for Action
Jerry Keenan, Executive Vice President
Jackie Berger, Ph.D., President & Co-Founder
Atlantic Health Systems
Robert Peake, VP Facilities Management
Bergen County’s United Way
Tom Toronto, Executive Director
Burns & McDonnell
Vern H. Mulkey, PE, Dir. of Projects
Zachary Kahn, Director of Government Relations — North America
Assoc. Vice President
CMC Energy Services, Inc.
Eileen McGinnis, President & CEO
Christian Health Care Center
Michael Doss, SR VP of Facilities
Management and Business Dev.
Concord Engineering Group
Michael Fischette, CEO
Matt Skidmore, CEO
County of Union
Amy C. Wagner
Deputy Co. Manager/Director
Department of Economic Development
Joseph Chirichella, President & CEO
Eastern Metal Recycling
H. J. Cain, Business Development
Sarah Colvin, Director – Business Development
Chris Weinberg, Director of Facilities
Eos Energy Storage
Michael Oster, CEO
Essex Police Chief Assoc. & Chief of North Caldwell PD
Chief Mark Deuer
Ferreira Construction/Vanguard Energy Partners
Nelson Ferreira – President & CEO
Jason LaStella, Director – Business Dev.
GreenLife Energy Solutions
Edward Ryan, President & Founder
Scott Fisher, VP Market Development
Greater Paterson Chamber of Commerce
James Dykes, President
Charles Copeland, President & CEO
Hackensack Meridian Health
Kyle Tafuri, Director of Sustainability
Landis + Gyr
Executive VP & Head of Americas Region
Adam Procell, President & CEO
Lincoln Park Coast Cultural District
Anthony Smith, Executive Director
Rich Selverian, President & CEO
Louis Allora, VP Engineering Services
Mayor of Brooklawn
Mayor Theresa Branella
Mayor of Caldwell
Mayor Ann Dassing
Mayor of East Orange
Mayor Ted Green
Mayor of Haworth
Mayor John Smart
Mayor of Orange
Mayor Dwayne Warren
Mayor of South Orange
Mayor Sheena Collum
Mayor of Westfield
Mayor Shelley Brindle
Meadowlands Chamber of Commerce
Jim Kirkos, President
Morris County Chamber of Commerce
Paul Boudreau, President
Head of Northeast Energy Partnerships
Newark Arts Council
Jeremy Johnson, Executive Director
Kimberly McClain, President & CEO
North East Energy Conservation Inc.
Richard Palmesino, President
New Jersey Energy Coalition
Dr. Ed Salmon, Chair
Newark Community Development Corp.
Aisha Glover, President & CEO
Newark Regional Chamber of Commerce
Chip Hallock, President
John Gustafson, CEO
New Jersey Institute of Technology
Andrew Christ, Vice President
New Jersey Environmental Lobby
Anne Poole, President
North Jersey Chamber of Commerce
Michelle Vernuccio, President
James Groome, Director Health, Safety & Engineering
Partner Engineering & Science, Inc.
Steven Soussous – Principal
Dir. Blg. Engineer & Sustainability
Marcelo Figueira, COO
Port Authority New York/New Jersey
Dir. Env. Policy, Programs and Compliance
Shihab Kuran, President & CEO
Princeton Power Systems
Marshall Cohen, Chairman of the Board
Eric J. McCarthy, SVP
Govt. Relations, Public Policy & Legal Affairs
Performance Systems Development of NY, LLC.
Kathleen Greely, Senior Vice President
Raritan Valley Community College
Brian O’Rourke, Director of Facilities
Research and Development Council of NJ
Anthony Cicatiello, Executive Director
Kristine Brown, Associate VP
Richards Manufacturing Co.
Bruce Bier, CEO
Stephen Zemaitais, Jr. – President
Regional Vice President North Atlantic
Justin Segall, President & Founder
Alan Teo, Chief Information Officer & VP
Somerset County Business Partnership
Michael V. Kerwin – President & CEO
Southern NJ Development Council
Jane Asselta, Vice President
Steven Winters Associates, Inc.
Marc Zuluaga, Managing Director
St. Peter’s University Hospital
Robert Mulcahy, VP of Facilities
Tata Consulting Services (TCS)
President North America, UK & Europe
David Grant, SVP Sales & Marketing
R. G. Vanderweil Engineers, LLP.
Jeffery M. Polo, Associate Principal
Township of Cherry Hill
Lenore Rosner, Business Administrator
Township of Woodbridge
Caroline Ehrlich, Chief of Staff
Union County College
Robert E. Hogan, Director of Facilities
Verizon Enterprise Solutions
Jim Kilmer, Global Vice President
Willdan Energy Solutions
Frank J. Evans, Senior VP, Eastern Region
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Public Service Electric and Gas Company (PSE&G) is New Jersey’s oldest and largest regulated gas and electric delivery utility, serving nearly three-quarters of the state’s population. PSE&G is the winner of the ReliabilityOne Award for superior electric system reliability. PSE&G is a subsidiary of Public Service Enterprise Group Incorporated (PSEG) (NYSE:PEG), a diversified energy company. In 2018, PSEG was named a member of the Dow Jones Sustainability North American Index for the 11th year in a row.
The statements contained in this press release that are not purely historical are “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. Such statements are based on management’s beliefs as well as assumptions made by and information currently available to management. Factors that may cause actual results to differ materially from those contemplated in any forward-looking statements made by us herein are discussed in our Annual Report on Form 10-K and subsequent reports on Form 10-Q and Form 8-K filed with the Securities and Exchange Commission (SEC), and available on its website: https://investor.pseg.com. All of the forward-looking statements made in this press release are qualified by these cautionary statements and we cannot assure you that the results or developments anticipated by management will be realized or even if realized, will have the expected consequences to, or effects on, us or our business, prospects, financial condition, results of operations or cash flows. Readers are cautioned not to place undue reliance on these forward-looking statements in making any investment decision. Forward-looking statements made in this press release apply only as of the date hereof. While we may elect to update forward-looking statements from time to time, we specifically disclaim any obligation to do so, even in light of new information or future events, unless otherwise required by applicable securities laws.
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