PSE&G moves forward with energy efficiency program in NJ
The New Jersey Board of Public Utilities (BPU) recently approved an important piece of Public Service Electric and Gas Co.’s (PSE&G) Clean Energy Future Proposal: a plan for the utility to invest $1 billion in energy efficiency programs, with the goal of reducing customer bills and creating jobs.
“PSE&G believes the decision by the New Jersey Board of Public Utilities (BPU) is a major step forward in efforts to help customers use less energy and save on their bills,” said James Efstathiou, communications consultant with PSEG. “It has the added benefits of boosting the economy, creating jobs and helping the state reach its aggressive clean energy targets, and avoiding 8 million metric tons of carbon emissions through 2050.”
One area of negotiation between the utility and BPU involved the board’s proposal that program investments would be amortized over a seven-year period, which PSE&G said could adversely affect low-income customers. PSE&G had pushed for a 15-year amortization period, which it said would reduce the immediate rate impacts by spreading the cost of measures over a set period of time that better matches program costs with benefits.
In the final approval, a compromise of a 10-year amortization period was agreed upon.
“We’re satisfied with the overall settlement and are moving forward to bring the benefits of energy efficiency to every customer and give them options to reduce their energy use, save money and shrink their carbon footprint,” Efstathiou said. “PSE&G still believes that the costs of energy efficiency programs should be amortized over the expected 15-year life of the program measures to align program costs with the benefits customers receive.”
PSE&G is the largest electric and gas utility in New Jersey. The approved portion of the landmark energy efficiency program will help create rebates for energy-efficient appliances and equipment, introduce an energy efficiency job-training program, and help create an environment for universal access to energy efficiency.
PSEG hopes to achieve universal access by offering residential, commercial, and industrial customers rebates for energy-efficient lighting, HVAC equipment, and smart thermostats. Energy audits and energy efficiency kits will also be available in the program, which was created with low-income, multi-family, and small business customers in mind.
PSEG Chairman, President and CEO Ralph Izzo said the Sept. 23 decision will help the utility “bring the benefits of energy efficiency to every customer” and complement other programs the company is running or plans for the future, including methane-reduction initiatives and zero-carbon nuclear generation. New Jersey could become one of the top states for energy efficiency.
According to PSEG, the plan is expected to save customers a net of $1 billion, create 3,200 direct jobs and 1,100 indirect jobs, help businesses become more energy efficient, and help New Jersey avoid 8 million metric tons of carbon emissions through 2050. PSE&G expects its customers to save 2.15 percent for electricity and 1.1 percent for gas within five years.
PSEG is working to educate customers on the benefits of energy efficiency, both for themselves and the environment, according to Efstathiou. “Changing the way customers approach their energy use is an important and cost-effective path to a more energy efficient future. PSE&G offers a lineup of energy saving tips, tools and programs to help customers save energy, including our Home Energy Analyzer. The web-based tool generates customized reports with energy-saving tips and recommendations.”
PSEG has also launched an energy efficiency job-training program to help build a workforce to implement the plan, which is in line with the framework adopted by BPU earlier this year.
“PSEG Chairman, President and CEO Ralph Izzo often makes the point that the cheapest kilowatt hour of power is the one you never use,” Efstathiou explained. “That truism combined with the urgent need for the world to reduce carbon emissions to fight global warming is a large part of why energy efficiency and the program recently approved by the BPU are so important to us.”
PSE&G also has proposals for the Clean Energy Future before the BPU that relate to energy storage, transportation emissions, and advanced metering.
