In a development that could lead to more contract opportunities for CMC, the New Jersey Board of Public Utilities approved an energy efficiency and peak demand reduction program last month that will require utilities to play a major role in delivering energy-saving programs to residents and businesses.
Utilities will be mandated to reduce their customers’ gas and electricity usage as part of efforts to cut energy consumption, and ultimately limit the states impact on the environment.
The order includes ambitious energy efficiency restrictions to reach New Jersey’s clean energy goals – and reflects the state’s long-term commitment to decreasing its contributions to global warming. The new law mandates at least 2 percent reductions for electric utilities and 0.75 percent for gas utilities.
“These new mandates will create opportunities for new contracts for CMC to work with utilities in New Jersey to help decrease customer energy usage and save money,” said Blaine Fox, CMC’s Senior Director, Business Development.
“This is great news for the energy efficiency sector and for moving the state toward a cleaner future,” he noted. “The mandate is a smart decision and we’re looking forward to a spike in CMC’s work and activity in New Jersey.”
The adoption of this new energy efficiency program is considered both the least expensive and simplest way for New Jersey to reduce its emissions and reach its energy efficiency goals. The program also aims to increase access for low- to moderate-income individuals and underserved communities. In addition to reducing energy usage and customer’s utility bills, the effort will create thousands of new jobs in the state.
The program has also changed how utilities earn on their investments in energy efficiency. Now, they can earn as much return on equity by helping consumers buy energy-efficient appliances as they would in replacing an aging gas main or substation. The proposal also allows utilities to amortize these investments over ten years instead of seven, as originally proposed, a change BPU staff said could reduce potential spikes to ratepayers.