Trenton, NJ.—The New Jersey Board of Public Utilities (NJBPU) voted today to accept the Energy Master Plan Ratepayer Impact Study. The study, conducted by The Brattle Group, looked at the impact of the state’s Energy Master Plan (EMP) through 2030. Overall, the study found that electrification across all sectors led to lower energy bills for customers.

The comprehensive, yearlong review by Brattle shows that encouraging customers to reduce consumption of electricity and natural gas and implement energy efficiency strategies lowers customer costs and is vital to achieving clean energy goals. If customers reduce their energy consumption and invest in electrification of buildings and transportation, average bills in 2030 will fall below energy costs in 2020 by between 10-20 percent for most customers. It is important to note that the Brattle Report only looks at the impact on energy costs. The report does not include capital costs associated with clean energy investments, nor any new federal incentives available through the Inflation Reduction Act.

“It is clear from this report that we are on track to make New Jersey a cleaner and healthier place to live while establishing that if certain important steps are taken, ratepayer costs will be mitigated by the way of a decrease in cost,” said NJBPU President Joseph L. Fiordaliso. “We also must note the positive impact a clean energy economy brings to New Jersey, including the creation of new industries, the expansion of existing industries, and thousands of good-paying jobs.

“The role of the BPU as the state’s regulatory body is to ensure policies implemented are fair to ratepayers and to identify ways to mitigate the impact of energy industry changes, particularly on low-income customers,” said President Fiordaliso. “The analysis of ratepayer impacts presented in this study will help us do that.”

The study reveals that there are a range of outcomes, ranging from a reduction in costs if customers electrify and adopt energy efficiency measures as part of their home and daily lifestyle. The energy burden becomes more significant for those customers who choose not to adopt energy efficiency and electrification. An important part of customers transitioning to clean energy consumption will include incentives for customer participation and appropriate policymaking. The report also establishes that enhanced energy assistance programs will be necessary for low-income customers to help in the clean energy transition.

The Report also found that the annual benefit of reduced greenhouse gas emissions from implementing the State’s clean energy programs is about $1.75 billion a year in 2030. All the scenarios studied result in New Jersey meeting its 50% reduction of greenhouse gas targets by 2030. This is equivalent to avoiding emissions from 3.4 million homes’ energy use for one year or up to 5.8 million gasoline vehicles driven for one year.

The cost impact for average small and large Commercial and Industrial (C&I) customers is similar to that of the residential customer. Making use of existing energy efficiency technologies would also lower energy costs for C&I customers. Because the average C&I customer consumes energy at a larger scale, their savings from implementing clean energy options would yield greater total savings compared to residential customers.

About the New Jersey Board of Public Utilities (NJBPU)

NJBPU is a state agency and regulatory authority mandated to ensure safe, adequate and proper utility services at reasonable rates for New Jersey customers. Critical services regulated by NJBPU include natural gas, electricity, water, wastewater, telecommunications and cable television. The Board has general oversight and responsibility for monitoring utility service, responding to consumer complaints, and investigating utility accidents. To find out more about NJBPU, visit our website at www.nj.gov/bpu.

About New Jersey’s Clean Energy Program (NJCEP)

NJCEP, established on January 22, 2003, in accordance with the Electric Discount and Energy Competition Act (EDECA), provides financial and other incentives to the State’s residential customers, businesses and schools that install high-efficiency or renewable energy technologies, thereby reducing energy usage, lowering customers’ energy bills and reducing environmental impacts. The program is authorized and overseen by the New Jersey Board of Public Utilities (NJBPU), and its website is www.NJCleanEnergy.com.