Energy efficiency costs less than any source of electricity, making it the most economical way to reduce air pollution and greenhouse gas emissions. It saves U.S. consumers approximately $90 billion a year by helping them cut their energy bills.
The centerpiece of PSE&G’s historic Clean Energy Future proposal is a six-year commitment to energy efficiency programs. While we have invested in energy efficiency in the past, our latest proposal is larger and more inclusive. This program, for the first time, seeks to bring the benefits of energy efficiency to every residential customer in PSE&G’s service territories.
PSE&G is proposing to spend nearly $2.8 billion over six years on 22 energy efficiency programs that will reduce environmental impact and help customers reduce their energy consumption by using energy efficient equipment, technologies and strategies.
PSE&G’s energy efficiency proposal has the potential to save customers billions of dollars by helping them cut their household energy use, while also leading to improvements in the quality of our air and in public health, and to drastic reductions in the state’s carbon footprint.
The proposed program would:
• Reduce carbon dioxide and other emissions equivalent to removing nearly 320,000 cars from New Jersey roads for a year and put the state on track to meet its greenhouse gas reduction goals;
• Save 40.6 million megawatt-hours of electricity and 675 million therms of natural gas;
• Create about 5,000 jobs.
New Jersey has set ambitious public goals for renewable energy, but the state has been less aggressive in the area of energy efficiency – and it shows. On the 2018 national energy efficiency scorecard, New Jersey ranks No. 18 – up from No. 23. That is a significant improvement – the largest among any state during the past year – due largely to the state’s new energy efficiency targets, established by Gov. Phil Murphy and the New Jersey Legislature.
However, when it comes to actual energy savings, shown in the accompanying chart, New Jersey ranks No. 28. Why the discrepancy? Because while New Jersey was rated higher for its new energy efficiency policies, the state has yet to implement those policies in order to achieve actual energy savings.
That’s where PSEG’s energy efficiency proposal can make a difference.
In states that rank higher than New Jersey for energy efficiency savings, policymakers have embraced the role of the utility in delivering universal access to energy efficiency, and adjusted their regulations to encourage the spread of energy efficiency. States that have directed utilities to drive energy efficiencies are achieving net energy savings of 2 percent. New Jersey’s savings, meanwhile, are less than 0.6 percent. Vermont, Rhode Island and Massachusetts Island are saving five times as much as New Jersey.
PSE&G’s proposal would more than triple New Jersey’s current statewide electric energy efficiency savings.
In the past, PSE&G has successfully provided efficiency programs to hospitals and apartment buildings, as well as buildings that house nonprofits, small businesses and government agencies, helping them to reduce their energy bills by millions of dollars a year.
We want to do more.
PSE&G’s Clean Energy Future energy efficiency filing is a leap forward in the effort to lower utility bills, improve New Jersey’s environment and create green jobs that will help drive the economy. This proposal closely aligns with and supports state public policy, including the New Jersey Energy Master Plan, and builds on PSE&G’s existing energy efficiency efforts.