PSE&G Announces Approval of Clean Energy Future-Energy Efficiency II Program to Drive Continued Energy Savings in New Jersey

Rhea-AI Summary

PSE&G has received approval for its Clean Energy Future - Energy Efficiency II Program (CEF-EE II) from the New Jersey Board of Public Utilities. The program, running from January 2025 to June 2027, includes a $1.9 billion investment budget and aims to help achieve New Jersey's clean energy reduction targets. The initiative features 10 programs targeting residential and business customers, projecting $4 billion in lifetime bill savings for participants and the creation of approximately 3,500 direct jobs annually. The program is expected to avoid nearly 10 million metric tons of carbon dioxide emissions and includes building decarbonization and demand response components.

Positive

• $1.9 billion investment budget secured for energy efficiency programs
• Projected $4 billion in lifetime bill savings for participants
• Expected creation of 3,500 direct jobs annually
• Previous program achieved $500 million annual customer savings
• Strong track record with 400,000 customer participation in CEF-EE I
• Successful placement of 2,600 individuals in clean energy careers

Negative

• None.

$4 Billion in Projected Lifetime Bill Savings for Participating Customers

NEWARK, N.J., Oct. 30, 2024 /PRNewswire/ -- PSE&G today announced the approval of its Clean Energy Future - Energy Efficiency II Program (CEF-EE II) by the New Jersey Board of Public Utilities (NJBPU). Spanning from January 2025 to June 2027, this next program cycle is designed to continue delivering energy efficiency programs and measures to help New Jersey residents and businesses save energy, reduce utility costs and lower carbon emissions.

This initiative aims to help achieve the New Jersey clean energy annual reduction targets of 2% in electric usage and 0.75% in natural gas usage set forth in the 2018 Clean Energy Act and the NJBPU's energy efficiency framework orders. Over the next six years, the program will include an investment budget of $1.9 billion, net of administrative expenses, and provides nearly $1 billion of funding to continue the popular on-bill repayment program, which supports affordability and allows customers to repay the cost of equipment upgrades over time directly through their PSE&G bill. 

This new cycle will fund 10 programs aimed at helping residential and business customers reduce their energy usage, bills, and carbon footprint, while supporting economic growth in New Jersey. PSE&G projects that these investments will create and sustain approximately 3,500 direct jobs annually in sectors such as equipment installation, technology services and clean energy.

Specifically, eight of these programs will focus on continuing to deliver PSE&G's comprehensive suite of energy efficiency offerings, while two new programs will target building decarbonization and demand response. The building decarbonization program aims to incentivize the installation of heat pumps and other electric measures to replace fossil fuel equipment, thereby advancing efforts to decarbonize homes and businesses. Meanwhile, the demand response program will encourage customers to reduce electric consumption during peak demand periods and help them manage their overall usage to support the reliability of the electric grid.

The combined energy savings for participants are expected to generate gross lifetime bill savings of approximately $4 billion, as well as societal benefits such as providing targeted support to low income and overburdened communities, and the avoidance of nearly 10 million metric tons of carbon dioxide emissions. Additionally, the expansion of the company's award-winning Clean Energy Jobs Program, which will provide enhanced job training for emerging technologies, such as heat pump installations, helps ensure that the workforce is well-prepared for New Jersey's clean energy future.

"Our goal is to continue helping New Jersey residents and businesses save energy and reduce their costs," said Kim Hanemann, president and COO, PSE&G. "With the approval of this new program cycle, we aim to enhance our energy efficiency offerings, providing valuable resources and support to our customers. By helping lower carbon emissions across the state, this initiative reflects our commitment to a sustainable energy future where people use less energy that is cleaner, safer and delivered more reliably than ever."

Building on the Success of the CEF-EE I Program
Since its launch in 2021 through June 2024, PSE&G's CEF-EE I programs have achieved significant milestones. As of the latest reports, nearly 400,000 customers have participated in energy efficiency initiatives and are collectively projected to save more than $500 million annually on their energy bills. The program conserved 2.3 million megawatt-hours of electricity—enough to power nearly 335,000 homes—and avoided approximately 1.7 million metric tons of carbon emissions, equivalent to removing nearly 375,000 gasoline-powered cars off the road per year. Additionally, the Clean Energy Jobs Program has helped place over 2,600 individuals in clean energy careers.

PSE&G's programs have garnered widespread recognition, earning over 55 awards, including Energy Star Partner of the Year for three consecutive years. These accolades underscore the company's leadership in energy efficiency and sustainability.

For more information on how to participate in PSE&G's energy efficiency programs, visit homeenergy.pseg.com for residential customers or bizsave.pseg.com for business customers.  Information on payment assistance programs is available at pseg.com/help

For more information, click here: PSE&G Clean Energy Future – Energy Efficiency (CEF-EE II) Supplemental Summary (October 2024)

PSE&G
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 has won the ReliabilityOne® Award for superior electric system reliability in the Mid-Atlantic region for 22 consecutive years. For the third 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 2023 J.D. Power named PSE&G number one in customer satisfaction with residential and business electric 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 16 consecutive years (www.pseg.com).

Forward-Looking Statements
This release includes forward-looking statements, including but not limited to statements regarding anticipated or expected energy savings, cost saving and greenhouse gas emissions avoidance. There can be no assurance that such energy and costs savings and greenhouse gas emissions avoidance will be realized in the amounts described and / or in the timeframes anticipated. Such statements are based on management's beliefs as well as assumptions made by and information currently available to management but are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. Factors that may cause actual results to differ include, without limitation: the ability to implement our energy efficiency business strategy, and customer adoption of our energy efficiency offerings. All forward-looking statements made in this release are qualified by these cautionary statements and readers are cautioned not to place undue reliance on these forward-looking statements The forward-looking statements contained in this Report are intended to qualify for the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.

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FAQ

What is PSE&G's CEF-EE II program investment budget for 2025-2027?

PSE&G's Clean Energy Future - Energy Efficiency II Program has an investment budget of $1.9 billion, net of administrative expenses, for the period from January 2025 to June 2027.

How many jobs will PSE&G's CEF-EE II program create (PEG stock)?

The program is projected to create and sustain approximately 3,500 direct jobs annually in sectors such as equipment installation, technology services, and clean energy.

What are the expected customer savings from PSE&G's new energy efficiency program?

The program is expected to generate gross lifetime bill savings of approximately $4 billion for participating customers.

How many metric tons of carbon emissions will PSE&G's CEF-EE II program avoid?

The program is expected to avoid nearly 10 million metric tons of carbon dioxide emissions.