PSE&G Gains Approval for Landmark Clean Energy Future-Energy Efficiency Program

Rhea-AI Summary

The New Jersey Board of Public Utilities has approved PSE&G's $1 billion Clean Energy Future proposal, marking a significant commitment to energy efficiency. This initiative aims to provide substantial environmental benefits, reduce customer bills, and create jobs in the state. Over the next three years, the program is expected to deliver $1 billion in net customer savings and create 3,200 direct and 1,100 indirect jobs. Approximately 70% of the investment will target business customers, contributing to New Jersey's economic competitiveness and helping avoid 8 million metric tons of carbon emissions through 2050.

Positive

• Approval of a $1 billion investment in energy efficiency, the largest in New Jersey's history.
• Expected delivery of $1 billion in net customer savings.
• Creation of 3,200 direct jobs and 1,100 indirect jobs.
• 70% of the program focuses on helping business customers, enhancing economic competitiveness.
• Projected avoidance of 8 million metric tons of carbon emissions through 2050.

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• None.

NEWARK, N.J., Sept. 23, 2020 /PRNewswire/ -- The centerpiece of Public Service Electric and Gas Co.'s (PSE&G) landmark Clean Energy Future proposal was approved today by the New Jersey Board of Public Utilities (BPU). This decision clears the way for the state's largest utility to commit $1 billion toward energy efficiency investments over the next three years, the largest commitment ever in New Jersey, which is expected to provide environmental benefits and reduce customer bills while creating jobs and boosting the state's economy. Today's action is a vital step toward achieving Gov. Phil Murphy's clean energy vision, propelling New Jersey's economic and environmental sustainability policies to a new level.        

"This is a great day for New Jersey and all of us who care about addressing climate change," PSEG Chairman, President and CEO Ralph Izzo said. "Today's decision will allow us 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. New Jersey now has the opportunity to be at the forefront of clean energy policy and be a role model for the nation."

PSE&G's $1 billion investment in energy efficiency, including customer programs and information technology platforms to support the energy efficiency investments, will drive significant progress toward achieving Governor Murphy's clean energy agenda. The program's energy-saving measures, which include rebates for energy-efficient appliances and equipment, will help reduce New Jersey's carbon emissions and help the state recover from the economic impacts of the COVID-19 pandemic. Here's how:

• It is expected to deliver $1 billion in net customer savings, while also creating 3,200 direct jobs and another 1,100 indirect jobs.
• Approximately 70% of the program will be earmarked to help business customers lower their energy consumption and costs, enhancing New Jersey's economic competitiveness.
• PSE&G's energy efficiency programs will help New Jersey avoid 8 million metric tons of carbon emissions through 2050.

"How appropriate that, during Climate Week, New Jersey has taken this vital step to pursue energy efficiency, the most cost-effective approach to addressing climate change," Izzo said. "Today's decision is a tribute to Governor Murphy's decisive leadership on climate change and will deliver the economic and environmental benefits of energy efficiency to our customers."

Energy Efficiency Job Training Program
To help build a workforce with the skills needed to implement energy efficiency projects, PSE&G last month launched an energy efficiency job training program. PSE&G has partnered with a network of community organizations and the state Department of Labor to recruit participants from New Jersey's urban centers into PSE&G's job training program – which will prepare up to 2,000 state residents for jobs with the contractors that will implement PSE&G's energy efficiency programs.

Universal Access to Energy Efficiency
PSE&G's program offers residential, commercial and industrial customers rebates and other financial incentives to purchase energy-efficient lighting, HVAC equipment and smart thermostats. Customers also are eligible for free or affordable energy audits and energy efficiency kits. The program was designed with special emphasis on meeting the needs of low-income, multi-family and small business customers.

"We are committed to ensuring that all of our customers and the communities we serve get an opportunity to share in the benefits of this program, including lower energy bills, new jobs and cleaner air," PSE&G President Dave Daly said. "PSE&G appreciates the efforts of BPU staff, New Jersey Rate Counsel and other parties involved to help move this exciting program forward."

The approved program reflects the framework adopted by the BPU in June to implement energy efficiency throughout the state, which aligns utility incentives with the state's goal of reducing energy consumption and environmental impacts.

PSE&G's energy efficiency program also is designed to:

• Help New Jersey achieve the BPU's preliminary energy savings targets of 2.15% for electricity and 1.1% for gas within five years.
• Help lift New Jersey into the top five U.S. states for both electric and gas savings.

"This large-scale commitment to energy efficiency is the cornerstone for PSEG to make further progress as a leading provider of sustainable energy," Izzo said. "That commitment includes other clean energy investments, methane-reduction initiatives and zero-carbon nuclear generation."

For more see: psegpoweringprogress.com/energy-efficiency/

Separate PSE&G Clean Energy Future proposals pending before the BPU would help New Jersey meet the state's energy storage goals, reduce emissions from the transportation sector and modernize customer communications through advanced metering.

More information about PSEG's commitment to environmental leadership can be found in its Sustainability Report and Climate Report. 

PSE&G
Public Service Electric & Gas Co. (PSE&G) is New Jersey's oldest and largest gas and electric delivery public utility, serving three-quarters of the state's population. PSE&G is the winner of the ReliabilityOne Award for superior electric system reliability in the Mid-Atlantic region. In 2020, PSE&G was named the most trusted combined gas & electric utility in the East Region, by the Cogent Syndicated Brand Trust Index. PSE&G is a subsidiary of Public Service Enterprise Group Inc. (PSEG) (NYSE:PEG), a diversified energy company. PSEG has been named to the Dow Jones Sustainability Index for North America for 12 consecutive years (www.pseg.com).

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Forward-Looking Statement
The statements contained in this press release that are not purely historical are "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. Factors that may cause actual results to differ materially from those contemplated in any forward-looking statements made by us herein are discussed in our Annual Report on Form 10-K and subsequent reports on Form 10-Q and Form 8-K filed with the Securities and Exchange Commission (SEC), and available on our website: https://investor.pseg.com. All of the forward-looking statements made in this press release 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 press release apply only as of the date hereof. 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.

From time to time, PSEG, PSE&G and PSEG Power release important information via postings on their corporate website at https://investor.pseg.com. Investors and other interested parties are encouraged to visit the corporate website to review new postings. The "Email Alerts" link at https://investor.pseg.com may be used to enroll to receive automatic email alerts regarding new postings.

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SOURCE PSE&G

FAQ

What is the significance of PSEG's $1 billion investment?

PSEG's $1 billion investment in energy efficiency is the largest commitment in New Jersey's history, aiming to reduce energy bills and create jobs.

How many jobs will PSEG's energy efficiency program create?

The program is expected to create 3,200 direct jobs and another 1,100 indirect jobs.

What are the environmental goals of PSEG's energy efficiency program?

The program aims to help avoid 8 million metric tons of carbon emissions through 2050.

When was PSEG's Clean Energy Future proposal approved?

The New Jersey Board of Public Utilities approved PSEG's Clean Energy Future proposal on September 23, 2020.

What percentage of PSEG's investment will help business customers?

Approximately 70% of PSEG's investment will be earmarked to assist business customers in lowering energy consumption and costs.