PSE&G Files Clean Energy Future - Energy Efficiency II ("CEF-EE II") Program Advancing New Jersey's Energy Efficiency, Building Decarbonization and Economic Growth

Rhea-AI Summary

PSE&G (Public Service Electric & Gas Co.) has submitted its Clean Energy Future – Energy Efficiency II ('CEF-EE II') filing to the NJ Board of Public Utilities, comprising 11 programs targeting diverse customer segments, with a proposed $3.1 billion investment. The program aims to reduce nearly 10 million metric tons of carbon emissions and generate economic benefits for New Jersey residents and businesses. However, the filing also indicates a potential average monthly increase of $3.05 on the electric bill and $2.74 on the gas heating bill for customers.

Positive

• Comprehensive program targeting diverse customer segments
• Aims to reduce nearly 10 million metric tons of carbon emissions
• Anticipated creation/maintenance of 5,500 direct jobs annually
• Expansion of job training to include electrification measures

Negative

• Potential average monthly increase of $3.05 on the electric bill and $2.74 on the gas heating bill for customers
• Increased capital investment range of $16 billion to $18.5 billion for PSE&G

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. , Dec. 1, 2023 /PRNewswire/ -- 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

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 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).

Visit PSEG at:  PSEG on Facebook  | PSEG on Twitter  | PSEG on LinkedIn 

FORWARD-LOOKING STATEMENTS

Certain of the matters discussed in this communication about our and our subsidiaries' future performance, including, without limitation, future strategies, prospects, consequences, as well as statements regarding ESG targets, goals, plans to reduce emissions and emissions intensity, consideration by management of climate scenario analyses, strategies for implementing climate-related programs and related plans, targets and goals, commitments to climate-related programs and policies, expectations and priorities for climate-related initiatives, future climate reporting and other ESG-related initiatives, objectives and other matters, and all other statements that are not purely historical, constitute "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. When used herein, the words "anticipate," "intend," "estimate," "believe," "expect," "plan," "should," "hypothetical," "potential," "forecast," "project," variations of such words and similar expressions are intended to identify forward-looking statements. Forward-looking statements are aspirational and not guarantees or promises that targets, goals, plans, commitments, or projections will be met, or that strategies will be implemented or expectations realized, and no assurance can be given that any plans, targets, goals, commitments, expectations, initiatives or plans in this communication can or will be realized, achieved, met or completed. Investors are cautioned not to place undue reliance on any forward-looking statements.  Factors that may cause actual results to differ are often presented with the forward-looking statements themselves. These risks and uncertainties include, without limitation, any failure to meet stated environmental targets, goals and commitments, implement and execute our priorities and strategies in the time frame expected or at all, global sociodemographic and economic trends, changing government regulations, technological innovations, climate-related conditions and weather events, our ability to gather and verify data regarding environmental impacts, the compliance of various third parties with our policies and procedures, and our expansion into new products, services, technologies, and geographic regions. Other factors that could cause actual results to differ materially from those contemplated in any forward-looking statements made by us herein are discussed in filings we make with the United States Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K and subsequent reports on Form 10-Q and Form 8-K. These factors include, but are not limited to:

• any inability to successfully develop, obtain regulatory approval for, or construct transmission and distribution, and our nuclear generation projects;
• the physical, financial and transition risks related to climate change, including risks relating to potentially increased legislative and regulatory burdens, changing customer preferences and lawsuits;
• any equipment failures, accidents, critical operating technology or business system failures, severe weather events, acts of war, terrorism or other acts of violence, sabotage, physical attacks or security breaches, cyberattacks or other incidents that may impact our ability to provide safe and reliable service to our customers;
• any inability to recover the carrying amount of our long-lived assets;
• disruptions or cost increases in our supply chain, including labor shortages;
• any inability to maintain sufficient liquidity or access sufficient capital on commercially reasonable terms;
• the impact of cybersecurity attacks or intrusions or other disruptions to our information technology, operational or other systems;
• a material shift away from natural gas toward increased electrification and a reduction in the use of natural gas;
• failure to attract and retain a qualified workforce;
• inflation, including increases in the costs of equipment, materials, fuel and labor;
• the impact of our covenants in our debt instruments and credit agreements on our business;
• 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;
• any inability to meet our commitments under forward sale obligations and Regional Transmission Organization rules;
• reliance on transmission facilities to maintain adequate transmission capacity for our nuclear generation fleet;
• the impact of changes in state and federal legislation and regulations on our business, including PSE&G's ability to recover costs and earn returns on authorized investments;
• 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;
• risks associated with our ownership and operation of nuclear facilities, including increased nuclear fuel storage costs, regulatory risks, such as compliance with the Atomic Energy Act and trade control, environmental and other regulations, as well as financial, environmental and health and safety risks;
• changes in federal and state environmental laws and regulations and enforcement;
• delays in receipt of, or an inability to receive, necessary licenses and permits and siting approvals; and
• changes in tax laws and regulations.

All of the forward-looking statements made in this communication 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 communication apply only as of the date of this communication. 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.

The forward-looking statements contained in this communication 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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SOURCE PSE&G

FAQ

What is PSE&G's Clean Energy Future – Energy Efficiency II ('CEF-EE II') filing about?

PSE&G's CEF-EE II filing comprises 11 programs targeting diverse customer segments, with a proposed $3.1 billion investment, aiming to reduce nearly 10 million metric tons of carbon emissions and generate economic benefits for New Jersey residents and businesses.

How much is the expected increase in the average monthly electric bill for PSE&G customers?

If approved, 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.

What are the potential economic benefits of PSE&G's CEF-EE II program?

The program is expected to create/maintain 5,500 direct jobs annually and expand job training to include electrification measures, such as heat pump installation, generating economic benefits for New Jersey residents and businesses.

What is the anticipated impact of the CEF-EE II program on carbon emissions?

The combined lifetime energy savings from PSE&G's programs are expected to avert nearly 10 million metric tons of carbon dioxide emissions.

What is the capital investment range for PSE&G as a result of the proposed program?

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 as a result of the proposed program.