For Immediate Release:
Media Contact: Anjuli.Ramos@sierraclub.org, 267-399-6422
BPU EMP Ratepayer Study Shows Clean Energy & Electrification Will Save $$$
Trenton, NJ—The New Jersey Board of Public Utilities (NJBPU) voted 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 all types of customers.
The Study evaluates expected ratepayer energy costs in 2030 under three scenarios: Current Policy Pathway; EMP Achievement Pathway; and an Ambitious Pathway, and compares them to costs in 2020 (all cost comparisons are done in 2022 dollars). The scenarios were additionally evaluated for residential, small and large commercial and industrial customer classes for each utility combination. This comprehensive evaluation at the customers’ energy spending allows us to capture the impacts of energy efficiency and electrification of heating and transportation on customers’ overall energy use and resulting costs.
“This BPU report confirms that the ratepayer will ultimately pay less if we transition to clean energy sources, and our homes and vehicles are electrictrified. However, the more telling and impactful result from this report is the fact that the low-income ratepayer will also benefit from this saving only if NJ provides the assistance to meet the up-front cost of electrification,” said Anjuli Ramos-Busot, NJ State Director for the Sierra Club. “NJ has to meet the ongoing clean energy future and market with equity at the forefront, otherwise we go back to the status quo of only the wealthy benefiting from less pollution and more savings.”
This Study focused on customers’ total energy burden, and did not incorporate the climate and health benefits of transition to clean energy sources and electrification. The BPU, however, calculated the avoided cost of greenhouse gas emissions in 2030 using the Social Cost of Carbon and found that the annual benefit of reduced GHG emissions is $1.75 billion/year in 2030 under the EMP Achievement Pathway. Annual greenhouse gas emissions decrease by 30% from 2020 levels by 2030 under the EMP Achievement Pathway, which is equivalent to avoided emissions from 3.4 million homes' energy use for one year, or 5.8 million gasoline vehicles driven for one year.
“The next logical step for the NJ Board of Public Utilities is to consider the societal benefits of mitigating climate change and reducing the negative impacts to public health by transitioning to clean energy sources. The financial savings by considering these benefits will translate to the true economic benefit and therefore highly motivitave the ratepayer to move forward to electrify their homes and vehicles,” said Anjuli Ramos-Busot, NJ State Director for the Sierra Club.