PSE&G Files Clean Energy Future - Energy Efficiency II (“CEF-EE II”) Program Advancing New Jersey's Energy Efficiency, Building Decarbonization and Economic Growth
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
(NEWARK, N.J. – December 1, 2023) – 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
Public Service Electric & Gas Co. is New Jersey’s oldest and largest gas and electric delivery public utility, as well as one of the nation’s largest utilities. PSE&G is the 2022 Edison Award recipient from the Edison Electric Institute. PSE&G has won the ReliabilityOne® Award for superior electric system reliability in the Mid-Atlantic region for 22 consecutive years. For the second consecutive year, PSE&G is the recipient of the ENERGY STAR Partner of the Year award in the Energy Efficiency Program Delivery category. In addition, in 2022 J.D. Power named PSE&G number one in customer satisfaction for both Residential Electric and Natural Gas Service in the East among Large Utilities. PSE&G is a subsidiary of Public Service Enterprise Group Inc., (PSEG) (NYSE:PEG), a predominantly regulated infrastructure company focused on a clean energy future and has been named to the Dow Jones Sustainability Index for North America for 15 consecutive years (www.pseg.com).
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- failure to attract and retain a qualified workforce;
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- adverse performance of our defined benefit plan trust funds and Nuclear Decommissioning Trust Fund and increases in funding requirements and pension costs;
- fluctuations in, or third party default risk in wholesale power and natural gas markets, including the potential impacts on the economic viability of our generation units;
- our ability to obtain adequate nuclear fuel supply;
- changes in technology related to energy generation, distribution and consumption and changes in customer usage patterns;
- third-party credit risk relating to and purchase of nuclear fuel;
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- reliance on transmission facilities to maintain adequate transmission capacity for our nuclear generation fleet;
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- PSE&G’s proposed investment programs may not be fully approved by regulators and its capital investment may be lower than planned;
- our ability to advocate for and our receipt of appropriate regulatory guidance to ensure long-term support for our nuclear fleet;
- adverse changes in and non-compliance with energy industry laws, policies, regulations and standards, including market structures and transmission planning and transmission returns;
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- changes in federal and state environmental laws and regulations and enforcement;
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- changes in tax laws and regulations.
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