PSE&G Petitions to Extend Energy Efficiency Program

NEWARK, N.J. — Public Service Electric & Gas (PSE&G), New Jersey’s largest utilities provider, wants the state to spend $110 million and extend an energy efficiency program that benefits hospitals, multi-family housing units, nonprofits and government agencies.

In a petition filing with the state board of public utilities, Newark-based PSE&G states that all existing funding from a prior program proposed in 2011 has been committed. According to, the previous program was so popular, there is a backlog of 26 hospitals and 45 multi-family units seeking to have PSE&G undertake energy efficiency projects. The work involves replacing or upgrading heating and air-conditioning units, lighting retrofits, improving thermostat controls and insulation, among other efforts.

If funds are granted, PSE&G will continue its hospital efficiency subprogram, which will provide 100 percent of the cost to install energy-savings improvements up-front. Under this program, hospitals repay their share of program costs on their utilities bill interest-free over a three-year period or in a single payment. The proposed investment out of the $110 million will be $40 million.

The residential multi-family housing subprogram would provide building owners with an energy audit of their property and will offer incentives and up-front funding for the cost of energy efficiency measures. Customers would repay a portion of the total cost interest-free on their utilities bill, and the cost for this program would be $30 million.

Finally, PSE&G wants to extend the government/nonprofit direct install subprogram, which will offer a walk-through energy evaluation to eligible facilities and provide a report of recommended energy-savings improvements, as well as the direct installation of energy-savings measures. PSE&G would continue to provide 100 percent of the cost to install the recommended energy-savings up-front with the customer repaying their share of program costs through utilities bills interest-free over three years.

In his proposal testimony, Jess Melanson, director of energy savings for PSE&G, said the programs would help reduce emissions, improvement environment and create jobs.

“Additionally the proposed extension of the sub-programs will enable PSE&G to serve its customers on its waiting lists and ensure the continuity of these highly successful utility programs while the New Jersey Office of Clean Energy considers and implements improvements to the current energy efficiency program structure in the state,” Melanson said.