Energy Efficiency and Electric
Infrastructure in the State of
New Jersey
In any given state, there are a range of stakeholders well-positioned to contribute to the design and delivery of effective energy
efficiency programming. This factsheet provides an overview of relevant entities in the state of New Jersey, along with highlights of
state policies and practices related to energy efficiency. The entity types described and highlighted below are typically involved in
electricity and/or energy efficiency related matters in states. Other important stakeholders such as trade associations, industry, and
local businesses are not included as they vary significantly from state to state.
* * *
Electric Market Overview
Electric Utilities
Privately- and publicly-owned electric utilities generate, transmit, distribute, and/or sell electricity primarily for use by the public. These
include investor-owned electric utilities, municipal and state utilities, Federal electric utilities, and rural electric cooperatives.
1
The
following summarizes electric utilities in New Jersey by type:
Investor-Owned Electric Utilities:
Atlantic City Electric Company: https://www.atlanticcityelectric.com/
Jersey Central Power & Light: https://www.firstenergycorp.com/content/customer/jersey_central_power_light.html
Public Service Electricity & Gas: https://www.pseg.com/
Rockland Electric Company: http://oru.com/index.html
Member-Owned (Electric Cooperative): New Jersey has 1 distribution electric cooperative (Sussex Rural Electric Coop Inc.)
Municipally-Owned/Publicly-Owned Utilities: New Jersey has 1 municipally- or publicly-owned electric systems in the state
(Vineland Municipal Authority)
Other: 6 Retail Power Marketers; 4 Wholesale Power Marketers
2
Electric utility service areas (as available):
http://www.njcleanenergy.com/main/public-reports-and-library/links/electric-utilities-territory-map
Status of Electric Industry Restructuring
Vertically integrated utilities are responsible for generation, transmission and distribution of power to customers. In the 1990’s, many
states began to unbundle the electricity supply and distribution functions of investor-owned utilities on the theory that only the wires (the
fixed network system) constituted a natural monopoly, while the generation of power did not. In states that have undergone
restructuring, individual retail customers can choose their supplier but still receive delivery over the power lines of the local utility.
3
New Jersey has a restructured electric industry. http://www.eia.gov/electricity/policies/restructuring/new_jersey.html
1
Source: EIA
2
Source): EIA 2013 Form EIA-861 Utility Data (http://www.eia.gov/electricity/data/eia861/), New Jersey Board of Public Utilities
(http://www.nj.gov/bpu/), Power 2 Switch (https://power2switch.com/NJ/utility_territory_map/), and American Council for an Energy-Efficient
Economy (ACEEE) (http://database.aceee.org/state/new-jersey)
3
Source: The Regulatory Assistance Project (RAP)
Regional Transmission Organization (RTO)/Independent System Operator(ISO)
About 60% of U.S. electric power supply is managed by RTOs or ISOs: independent, membership-based organizations that ensure
reliability and usually manage the regional electric supply market for wholesale electric power. In the rest of the country, electricity
systems are operated by individual utilities or utility holding companies. RTOs/ISOs engage in long-term planning that involves
identifying effective, cost-efficient ways to ensure grid reliability and system-wide benefits. Coordination and cooperation between
utilities, state PUCs and RTOs/ISOs is often required to advance energy efficiency goals.
4
New Jersey is part of PJM: http://www.pjm.com/
Utility Oversight and Planning
Utility Oversight
Public utility commissions (PUCs) oversee goals, investments, and ratemaking for investor-owned electric utilities. Most of this oversight
is conducted via specific regulatory proceedings. Municipally-owned utilities are governed by a local city council or an elected
commission, and member-owned/cooperative utilities are governed by a board elected by members. In a few states, PUCs have
oversight over some aspects of municipally and member-owned utility performance such as energy efficiency resource standards.
5
The New Jersey Board of Public Utilities is the state agency with authority to oversee the regulated utilities, which in turn
provide critical services such as natural gas, electricity, water, telecommunications and cable television. http://www.nj.gov/bpu/
Integrated Resource/Procurement Planning
Integrated resource plans (IRPs) are utility plans for meeting forecasted annual peak and energy demand through a portfolio of supply-
side and demand-side resources over a specified future period. As of early 2015, integrated resource planning is required or present in
more than 30 states, including most vertically integrated/non restructured states. In states that are restructured, regulated distribution-
only utilities may be required to develop procurement plans to service customers that do not choose a competitive retail supplier.
Energy efficiency is considered as a demand-side resource but the degree to which it is included in resource/procurement planning is
influenced by other factors including policies such as energy efficiency resource standards or requirements that all cost effective energy
efficiency be considered.
6
New Jersey does not have Integrated Resource Planning.
Statewide Planning Process
States sometimes undertake executive or legislatively driven statewide energy planning processes. These plans may be completely
independent of utilities or may explicitly engage utilities.
2011 Energy Master Plan: http://www.naseo.org/Data/Sites/1/documents/stateenergyplans/NJ.pdf
Energy Efficiency Potential Studies
Energy efficiency potential studies determine the amount of technical, economic, and achievable potential for energy efficiency in a
region, state, or utility service territory. Energy efficiency potential studies may be undertaken by state agencies or energy efficiency
advocacy organizations, or by utilities as part of or to inform compliance with a regulatory requirement. The following are recent energy
efficiency potential studies:
New Jersey Energy Efficiency Market Potential Assessment (2012):
http://www.njcleanenergy.com/files/file/Library/NJ_Potential_Final_Report-Vol_2-EE_2012-10-17.pdf
4
Source: EPA Energy and Environment Guide to Action
5
Sources: EPA Energy and Environment Guide to Action and RAP
6
Source: EPA Energy and Environment Guide to Action
Energy Efficiency Policies/Activities
Statewide Clean Energy Policy/Energy Efficiency Energy Resource Standard(s)
Energy efficiency resource standards (EERSs) require obligated parties—usually regulated retail distributors of electricity—to meet a
specific portion of their electricity demand through energy efficiency. As of March 2015, 27 states have some type of energy efficiency
requirement or goal.
7
New Jersey does not have a mandatory energy efficiency resource standard.
Current Utility-Administered Energy Efficiency Programs
Energy efficiency is regarded as an important utility resource with co-benefits that include reducing air pollution, saving customers on
utility bills, and creating local jobs. While the majority of large-scale energy efficiency programs are funded by utility ratepayers,
program administration may be by the utility, the state, an independently awarded program administrator or a combination of entities.
Below are available links related to ratepayer-funded energy efficiency programs offered in the state
8
:
Energy efficiency and renewable energy programs in New Jersey are administered by the Office of Clean Energy within the
Board of Public Utilities under the New Jersey Clean Energy Program. New Jersey's Clean Energy Program is a statewide
program that offers financial incentives, programs and services for New Jersey residents, business owners and local
governments to help them save energy, money and the environment. http://www.njcleanenergy.com/ and
http://database.aceee.org/state/new-jersey
Program Administrator: Atlantic City Electric Company: http://www.atlanticcityelectric.com/my-home/save-money-and-
conserve-energy/ and http://www.atlanticcityelectric.com/my-business/save-money-and-conserve-energy/
Most recent program filing: http://www.state.nj.us/bpu/pdf/boardorders/2015/20150617/6-17-15-8E.pdf
ENERGY STAR Partner since 2007
Program Administrator: Jersey Central Power & Light:
https://www.firstenergycorp.com/save_energy/save_energy_new_jersey.html
Most recent program filing: http://www.state.nj.us/bpu/pdf/boardorders/2015/20150617/6-17-15-8E.pdf
ENERGY STAR Partner since 1998
Program Administrator: Public Service Electricity & Gas: https://www.pseg.com/home/save/manage_costs/index.jsp
Most recent program filing: http://www.state.nj.us/bpu/pdf/boardorders/2015/20150617/6-17-15-8E.pdf
Program Administrator: Rockland Electric Company:
http://www.oru.com/programsandservices/incentivesandrebates/newjerseycustomers.html
Most recent program filing: http://www.state.nj.us/bpu/pdf/boardorders/2015/20150617/6-17-15-8E.pdf
Other Key Stakeholders
State Air Office:
Department of Environmental Protection, Division of Air Quality: http://www.nj.gov/dep/daq/
State Energy Office:
New Jersey Clean Energy Program: http://www.njcleanenergy.com/
Consumer Advocate(s)
Most states also have one or more consumer advocacy organizations. Consumer Advocates are often concerned with maintaining low
rates and ensuring equitable treatment of all customer classes
9
.
7
Ibid.
8
For other energy efficiency program offerings in the state, visit: http://programs.dsireusa.org/system/program?state=nj
9
Source: EPA Energy and Environment Guide to Action
New Jersey Division of Rate Council: http://www.state.nj.us/rpa/
Others Public Interest Groups
Groups representing environmental and other public interests are often involved in providing public input or technical expertise during
regulatory proceedings or stakeholder processes. The following energy efficiency organizations/nonprofits are active in the state or
region:
Northeast Energy Efficiency Partnerships (NEEP): http://www.neep.org/
Regional Greenhouse Gas Initiative: http://www.rggi.org/
ENERGY STAR is the simple choice for energy efficiency. For more than 20 years, EPA’s ENERGY STAR program has been America’s
resource for saving energy and protecting the environment. Join the millions making a difference at energystar.gov
* Revised December 21, 2015. To alert the U.S. EPA of substantial policy changes or program updates, please contact [email protected]
