New Jersey approves $225 million in energy efficiency proposals

NEW YORK (Reuters) - New Jersey regulators on Wednesday approved more than $225 million in energy efficiency proposals from three utilities expected to spur the economy by creating nearly 1,000 new jobs over the next 18 months.

In a release, the state Board of Public Utilities (BPU) said the job creation numbers were conservative because they did not include indirect job creation in other sectors for labor, materials and services needed to support the utility programs.

The proposals were in response to New Jersey Gov. Jon Corzine's economic stimulus plan, announced last autumn, which called for expedited infrastructure and energy efficiency spending. All of the state's major utilities responded with plans earlier this year.

The three utilities with approved plans were New Jersey Resources Corp's New Jersey Natural Gas ($18.3 million/114 estimated new jobs); South Jersey Industries Inc's South Jersey Gas ($17.12 million/163 estimated new jobs); and Public Service Enterprise Group Inc's PSE&G ($190 million/688 estimated new jobs).

The BPU is still looking at proposals from FirstEnergy Corp's JCP&L, Pepco Holdings Inc's Atlantic City Electric, AGL Resources Inc's Elizabethtown Gas and Consolidated Edison Inc's Rockland Electric.

In a release, PSE&G said it would recover its investments from ratepayers though an energy-based charge. PSE&G said the average residential customer, who uses 6,960 kilowatt-hours annually, will pay $2.60 a year. The average residential gas heating customer, using 1,210 therms of natural gas annually, will pay $3.10 a year.

In addition to creating jobs, the state expected the plans to reduce energy usage and costs, improve air quality and reduce greenhouse gas emissions, which contribute to climate change.

(Reporting by Scott DiSavino; Editing by Christian Wiessner)