BPU Must Scrutinize PSE&G Energy-Efficiency Plan

The New Jersey Division of Rate Counsel has recommended the state reject a $2.78 billion proposal by PSE&G to invest in new energy-efficiency projects across its territory. The ratepayer watchdog said PSE&G overestimated the cost savings that would be generated by the six-year program. The energy-efficiency component is the largest part of PSE&G $4 billion Clean Energy Future plan.

“The New Jersey Sierra Club is an intervenor in this case and we strongly support energy efficient program as the most cost-effective way to reduce greenhouse gases and pollution while creating green jobs. We have to make sure this is done right. The Rate Counsel has raised some valid concerns about PSE&G’s proposed $2.78 billion energy-efficiency program. BPU needs to look at this proposal carefully and not just act as a rubber stamp,” said Jeff Tittel, director of the New Jersey Sierra Club. “PSE&G can’t just be getting more money for less power.”

The energy-efficiency component is the largest part of PSE&G $4 billion Clean Energy Future plan presented last year. Other pieces include $800 million for smart metering and AMI, $180 million on energy storage, and $364 million to install 40,000 charging stations.

“The cost benefits of PSE&G’s $2.78 billion energy-efficiency program need to relate to actual savings, not just to market trends or whether we have warmer winters or colder summers. We are supportive of energy efficiency programs, but this plan must be codified better. PSE&G said its program would save $5.7 billion over 20 years however the Rate Counsel said the utility has overstated the cost effectiveness of the program. PSEG’s proposal cannot be all about making money at the expense of ratepayers,” said Jeff Tittel, director of the New Jersey Sierra Club. “We must be working to transition to clean, renewable energy, not just handing out more subsidies to PSE&G.”

The Rate Counsel also declared that a decoupling provision to allow PSE&G to recoup lost revenue was unnecessary and contrary to Gov. Murphy’s Clean Energy Act.

“We support decoupling, but the Rate Counsel said PSE&G’s plan does not conform to the law. Energy efficiency is an important way to grow our economy and protect against climate change however PSE&G’s plan could undercut BPU’s own energy efficiency efforts. It could also undermine the market when the market can do a better job. If this program is done the wrong way, it could present major obstacles to our clean energy future,” said Jeff Tittel, director of the New Jersey Sierra Club. “We can’t just give PSE&G a blank check from the ratepayer that will undermine progress for renewable energy in New Jersey.”