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

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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.

PSE&G ha ricevuto l'approvazione per il suo programma Clean Energy Future - Energy Efficiency II Program (CEF-EE II) dal New Jersey Board of Public Utilities. Il programma, che si svolgerà da gennaio 2025 a giugno 2027, prevede un budget di investimento di 1,9 miliardi di dollari e mira a contribuire al raggiungimento degli obiettivi di riduzione dell'energia pulita del New Jersey. L'iniziativa presenta 10 programmi rivolti a clienti residenziali e commerciali, con proiezioni di 4 miliardi di dollari di risparmi sulle bollette per i partecipanti e la creazione di circa 3.500 posti di lavoro diretti all'anno. Si prevede che il programma eviti quasi 10 milioni di tonnellate metriche di emissioni di anidride carbonica e includa componenti di decarbonizzazione degli edifici e risposta alla domanda.

PSE&G ha recibido la aprobación de su programa Clean Energy Future - Energy Efficiency II Program (CEF-EE II) por parte de la Junta de Servicios Públicos de Nueva Jersey. El programa, que se llevará a cabo desde enero de 2025 hasta junio de 2027, tiene un presupuesto de inversión de 1.9 mil millones de dólares y tiene como objetivo ayudar a alcanzar los objetivos de reducción de energía limpia de Nueva Jersey. La iniciativa incluye 10 programas dirigidos a clientes residenciales y comerciales, proyectando 4 mil millones de dólares en ahorros de facturación a lo largo de la vida para los participantes y la creación de aproximadamente 3,500 empleos directos anuales. Se espera que el programa evite casi 10 millones de toneladas métricas de emisiones de dióxido de carbono e incluya componentes de descarbonización de edificios y respuesta a la demanda.

PSE&G는 뉴저지 공공 유틸리티 위원회로부터 클린 에너지 미래 - 에너지 효율성 II 프로그램(CEF-EE II)에 대한 승인을 받았습니다. 이 프로그램은 2025년 1월부터 2027년 6월까지 운영되며, 19억 달러의 투자 예산을 가지고 있으며 뉴저지의 청정 에너지 감축 목표 달성을 돕는 것을 목표로 합니다. 이 이니셔티브는 주거 및 상업 고객을 대상으로 하는 10개 프로그램을 포함하고 있으며, 참가자들에게 40억 달러의 평생 청구서 절약을 전망하고 약 3,500개의 직접 일자리를 매년 창출할 것으로 예상됩니다. 이 프로그램은 거의 1000만 톤의 이산화탄소 배출을 피할 것으로 예상되며, 건물 탈탄소화 및 수요 반응 요소를 포함합니다.

PSE&G a reçu l'approbation de son programme Clean Energy Future - Energy Efficiency II Program (CEF-EE II) par la Commission des services publics du New Jersey. Le programme, qui se déroulera de janvier 2025 à juin 2027, dispose d'un budget d'investissement de 1,9 milliard de dollars et vise à aider à atteindre les objectifs de réduction d'énergie propre du New Jersey. L'initiative comprend 10 programmes ciblant les clients résidentiels et commerciaux, projettant des économies de factures de 4 milliards de dollars sur toute la durée pour les participants et la création d'environ 3.500 emplois directs par an. Il est prévu que le programme évite près de 10 millions de tonnes métriques d'émissions de dioxyde de carbone et comprenne des éléments de décarbonisation des bâtiments et de réponse à la demande.

PSE&G hat die Genehmigung für sein Programm Clean Energy Future - Energy Efficiency II Program (CEF-EE II) vom New Jersey Board of Public Utilities erhalten. Das Programm, das von Januar 2025 bis Juni 2027 läuft, umfasst ein Investitionsbudget von 1,9 Milliarden Dollar und hat zum Ziel, die Reduktionsziele für saubere Energie in New Jersey zu erreichen. Die Initiative beinhaltet 10 Programme, die sich an Haushalts- und Geschäftskunden richten, und prognostiziert 4 Milliarden Dollar an Lebenszeiteinsparungen bei den Rechnungen für die Teilnehmer sowie die Schaffung von etwa 3.500 direkten Arbeitsplätzen pro Jahr. Es wird erwartet, dass das Programm nahezu 10 Millionen metrische Tonnen Kohlendioxidemissionen vermeidet und Komponenten zur Dekarbonisierung von Gebäuden und zur Nachfrageflexibilität umfasst.

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.

Insights

This $1.9 billion energy efficiency program represents a significant expansion of PSE&G's clean energy initiatives. The program's scope is impressive, targeting 2% reduction in electric usage and 0.75% in natural gas usage. The projected $4 billion in lifetime bill savings for participants demonstrates substantial economic benefits.

Key aspects include:

  • Creation of 3,500 direct jobs annually
  • 10 million metric tons of CO2 emissions reduction
  • Integration of building decarbonization and demand response programs
  • Enhanced focus on low-income communities
The program's scale and comprehensive approach, combined with the successful track record of CEF-EE I, positions PSE&G well for meeting New Jersey's clean energy goals while potentially improving shareholder value through regulated returns on these investments.

The regulatory approval of this large-scale investment program provides PSE&G with a clear path for regulated returns through 2027. The $1.9 billion investment budget, complemented by $1 billion for the on-bill repayment program, represents a significant regulated capital deployment opportunity. The program's structure allows for cost recovery while supporting the utility's ESG initiatives.

Historical performance metrics from CEF-EE I, including 400,000 customer participants and $500 million in annual customer savings, demonstrate strong execution capability. This regulatory support and proven implementation track record should provide investors with confidence in PSE&G's ability to deliver regulated returns while advancing its clean energy strategy.

$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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SOURCE PSE&G

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.

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