PSE&G to extend New Jersey energy efficiency program
Ralph Izzo, CEO of PSE&G’s parent company, did not say on the earnings call how much the utility would spend on energy efficiency, if its decoupling plan is approved, but he told NJ Spotlight, “It would be big.”
Under the energy efficiency agreement, which has yet to be approved, $20 million would be allocated to multifamily housing projects, $25 million to hospitals, $15 million to governments and nonprofits, and $9 million for a new program to install smart thermostats in residences.
The agreement calls for a 9.75% allowed return on equity.
PSE&G’s energy efficiency spending is part of a wider effort in which the utility is seeking approval of a five year program to spend $2.7 billion on modernizing is natural gas delivery system and between $200 million and $300 million to strengthen its distribution system.