PSE&G's Energy Efficiency Programs Are Now Projected to Save $484M and Avoid Approximately 1.6M Metric Tons of Carbon Emissions Annually

Rhea-AI Summary

PSE&G's recent report on its Clean Energy Future Energy Efficiency (CEF-EE) initiatives reveals impressive outcomes. Over 380,000 customers have engaged with energy efficiency programs, resulting in projected annual savings of $484 million on utility bills. The initiatives include approximately 70,000 home energy assessments, sales of 306,000 smart thermostats, 95,000 power strips, and 97,000 retail appliance rebates.

Electric customers are expected to save over 2.1 million megawatt-hours annually, enough to power 312,000 homes, while natural gas savings are projected at 57 million therms. Collectively, these efforts aim to avoid 1.6 million metric tons of CO2 emissions yearly.

Commercial and industrial programs, such as the Small Business Direct Install Program, have saved business customers around $12 million in utility bills annually, along with significant energy savings. The Clean Energy Jobs Program has placed over 2,500 individuals in clean energy roles.

PSE&G's energy efficiency efforts have earned over 50 awards since 2021, including the 2024 ENERGY STAR® Partner of the Year Award for Sustained Excellence.

Positive

• Projected $484 million annual savings for customers.
• Avoidance of 1.6 million metric tons of CO2 emissions annually.
• Annual electric savings of over 2.1 million megawatt-hours.
• Projected savings of 57 million therms of natural gas annually.
• Over 97,000 retail appliance rebates provided.
• Small Business Direct Install Program saving $12 million annually for business customers.
• Over 2,500 individuals placed in clean energy jobs through the Clean Energy Jobs Program.
• 50+ awards earned since 2021, including the ENERGY STAR® Partner of the Year Award for Sustained Excellence.

Negative

• None.

Insights

Financial Analyst

PSE&G's energy efficiency programs are projected to save $484 million annually on utility bills, which is significant for household budgets and small businesses. These savings enhance disposable income and potentially drive consumer spending in other sectors, positively affecting the local economy. Moreover, the program's success in reducing energy consumption by over 2.1 million megawatt-hours of electricity annually demonstrates effective operational strategies. This translates to lower operational costs for businesses and improved profit margins.

From a shareholder perspective, the impact on PSE&G’s revenue might be neutral to slightly positive. While the company may see reduced revenue from energy sales, the increased customer satisfaction and potential regulatory incentives for energy efficiency programs could offset this. Additionally, the long-term sustainability focus aligns with growing investor preferences for environmentally responsible companies.

One challenge that remains is the scalability of such programs in other regions and the initial capital outlay required for energy efficiency technologies. Nonetheless, PSE&G's track record and recognition through awards suggest robust program management and execution capabilities.

Environmental Analyst

The reduction of approximately 1.6 million metric tons of carbon dioxide emissions annually is a substantial environmental achievement. For context, this is equivalent to the emissions from 349,000 gasoline-powered cars per year, significantly contributing to climate change mitigation. Such projects not only help in achieving state-level environmental goals but also position PSE&G as a leader in corporate environmental responsibility.

These efforts are particularly noteworthy in the context of regulatory pressures and societal expectations for carbon reduction. Additionally, the projected savings of 57 million therms of natural gas annually reflect an effective dual approach in managing both electricity and natural gas consumption, which is commendable.

However, it's important to critically assess the long-term sustainability of such initiatives. While current projections are promising, ongoing investment and technological advancements will be necessary to maintain and improve these achievements.

Market Research Analyst

The PSE&G Small Business Direct Install Program’s impact on small businesses, with annual utility bill savings of approximately $12 million, should not be understated. These savings can significantly improve the cash flow for small businesses, enabling them to reinvest in their operations or expand their business. Furthermore, the installation of energy-efficient technologies could enhance the operational efficiency of these businesses, leading to sustained long-term benefits.

From a market dynamics perspective, PSE&G’s proactive stance in energy efficiency can drive competitive pressure on other utility companies to implement similar programs. This could result in broader industry shifts toward sustainable energy consumption practices.

The successful placement of over 2,500 residents in clean energy jobs through the Clean Energy Jobs Program also stands out. This initiative not only contributes to economic growth but also builds a skilled workforce for the future, supporting the overall clean energy transition in the state.

Over 97,000 Retail Appliance Rebates Provided and Approximately $12 Million on Utility Bills Saved for Business Customers Participating in the PSE&G Small Business Direct Install Program

NEWARK, N.J., July 9, 2024 /PRNewswire/ -- PSE&G's latest report on its Clean Energy Future Energy Efficiency (CEF-EE) initiatives indicates a continuation of positive results from programs implementation through March 31, 2024. Over 380,000 customers have taken action to save energy and money through PSE&G's suite of energy efficiency programs.

Participating customers are projected to save a collective $484 millionⁱ annually on their utility bills through various program initiatives, including approximately 70,000 home energy assessmentsⁱⁱ, as well as the sale of about 306,000 smart thermostats and 95,000 power strips through PSE&G Marketplace. Additionally, the program has provided over 97,000 retail appliance rebates for energy-efficient electric appliances, which has helped to reduce energy consumption and greenhouse gas emissions.

For electric customers involved in these initiatives, projected savings exceed 2.1 million megawatt-hours of electricity annually, which is enough to power over 312,000 New Jersey homes each yearⁱⁱⁱ. Additionally, participating natural gas customers are expected to save approximately 57 million therms of natural gas annually. Collectively, these efforts are estimated to avoid about 1.6 million metric tons of carbon dioxide emissions annually^iv, equivalent to the emissions from 349,000 gasoline-powered cars on the road for a year^v.

Karen Reif, vice president of Renewables and Energy Solutions, PSE&G, stated, "We are pleased with the steady progress of our energy efficiency programs, our initiatives are making a measurable difference, allowing customers to lower both their utility bills and energy usage, which in turn supports New Jersey's clean energy objectives."

Additionally, PSE&G's commercial and industrial (C&I) energy efficiency programs have demonstrated significant impact. The PSE&G Small Business Direct Install Program^vi has delivered collective annual savings of approximately $12 million^vii on utility bills for participating business customers. This program is projected to save 52 thousand megawatt-hours of electricity annually, along with an estimated 2.4 million therms of natural gas for participating electric and/or gas business customers. Together, these C&I initiatives are anticipated to avoid about 44 thousand metric tons of carbon dioxide emissions each year^viii.

Henry Wong, a PSE&G business customer and owner of Carvel Ice Cream in Pennington, New Jersey, sought to enhance energy efficiency and customer comfort at his establishment. Through the Direct Install program, his store upgraded two aging rooftop HVAC units with dual enthalpy economizers and smart start features, yielding impressive results. "Using this program easily saved me $10,000 in installation and maintenance costs," said Wong. Overall, these upgrades resulted in annual savings of over $1,600 to Wong's business, reduced electricity use and improved cooling efficiency, ensuring ongoing benefits for the business.

PSE&G also sponsors the Clean Energy Jobs Program, which aims to expand the state's clean energy workforce by enhancing economic opportunities for unemployed, underemployed and low/middle-income individuals. By focusing on recruitment from the communities we serve, the program has successfully placed over 2,500 New Jersey residents in clean energy jobs, contributing to the state's clean energy objectives while promoting local job growth.

PSE&G's commitment to excellence is underscored by its ongoing recognition. Since 2021, PSE&G's energy efficiency programs have earned over 50 awards, including the 2024 ENERGY STAR^® Partner of the Year Award for Sustained Excellence. This award honors partners who have consistently demonstrated exceptional achievements in energy efficiency and have received the organization's Partner of the Year recognition for a minimum of two consecutive years.

For more information on PSE&G's energy efficiency programs, including how to participate, visit homeenergy.pseg.com for residential customers or bizsave.pseg.com for business customers.

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 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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ⁱ Retail bill savings are based on rate class averages for residential and small commercial customers.
ⁱⁱ Home energy audit includes: Home Performance with ENERGY STAR^®(HPwES), Home Weatherization Program and Quick Home Energy Check-up (QHEC).
ⁱⁱⁱ Based on the median annual consumption of PSE&G's residential customers.
^iv Carbon dioxide savings for electricity are based on EPA eGRID marginal emission rates for the eastern RFC region.
^v Vehicle equivalency is based on EPA conversion factors.
^vi The PSE&G Small Business Direct Install Program is designed to deliver comprehensive, cost-effective, energy efficiency equipment for eligible PSE&G business customers, with 12-month individual facility electricity average peak demand usage of less than 200 kW.
^vii Retail bill savings are based on rate class averages for small commercial customers.
^viii Carbon dioxide savings for electricity are based on EPA eGRID marginal emission rates for the eastern RFC region.

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SOURCE PSE&G

FAQ

What are the projected annual savings from PSE&G's energy efficiency programs?

The projected annual savings from PSE&G's energy efficiency programs are $484 million.

How much CO2 emissions are PSE&G's programs expected to avoid annually?

PSE&G's programs are expected to avoid approximately 1.6 million metric tons of CO2 emissions annually.

What is the estimated annual electricity savings from PSE&G's initiatives?

The estimated annual electricity savings from PSE&G's initiatives are over 2.1 million megawatt-hours.

How many smart thermostats have been sold through PSE&G's Marketplace?

Approximately 306,000 smart thermostats have been sold through PSE&G's Marketplace.

How much has the Small Business Direct Install Program saved business customers annually?

The Small Business Direct Install Program has saved business customers approximately $12 million annually.

How many individuals have been placed in clean energy jobs through PSE&G's Clean Energy Jobs Program?

Over 2,500 individuals have been placed in clean energy jobs through PSE&G's Clean Energy Jobs Program.

What awards has PSE&G's energy efficiency program received?

PSE&G's energy efficiency programs have received over 50 awards since 2021, including the 2024 ENERGY STAR® Partner of the Year Award for Sustained Excellence.