Climate Policy Engagement Analysis
Climate Lobbying Overview: Public Service Enterprise Group (PSEG) appears to be actively engaging on US policy with a mix of positive and negative positions, with evidence of advocacy at the federal level and in New Jersey and New York. Although the company advocated for the passage of the Inflation Reduction Act’s climate provisions, it continues to call for a long-term role for fossil gas, a position consistent with the negative advocacy of member industry groups American Gas Association and Edison Electric Institute.
Top-line Messaging on Climate Policy: PSEG demonstrates positive top-line messaging on climate policy. In June 2022, then-CEO Ralph Izzo authored an opinion piece in CNN that supported GHG emissions reductions in line with 1.5°C target. A month later, in July 2022, the company signed a C2ES advertisement that advocated for Congress to pass climate investments through budget reconciliation. PSEG appeared to support the goals of the Paris Agreement in its 2023 sustainability report, published in November 2023.
Engagement with Climate-Related Policy: PSEG demonstrates mostly positive engagement with climate-related policy on the federal and state level. At the federal level, the company signed a February 2022 joint letter organized by C2ES that advocated to Congressional leadership to pass the clean energy tax credits in the Build Back Better Act. In New Jersey, PSEG appears supportive of energy efficiency programs: it submitted June 2024 comments to the Board of Public Utilities (BPU) that appeared to support the inclusion of energy efficiency provisions in the update to the state Energy Master Plan, and previously submitted April 2023 comments in support of the state’s energy efficiency programs update. In May 2022, the company broadly supported the state’s solar incentive program in May 2022 comments to the BPU.
Positioning on Energy Transition: PSEG demonstrates a mix of positive and negative positions on the energy transition, with a focus on advocating for a long-term role for fossil gas. In an October 2022 press release, for example, CEO Ralph LaRossa stated support for clean energy while suggesting that the US should continue to rely on fossil gas. At the state level, LaRossa authored a September 2023 article that advocated for a “hybrid heating approach” that supported both gas furnaces and electric heat pumps. In February 2023, following New Jersey Governor Murphy’s announcement to raise the ambition of the state’s decarbonization’s targets, including for transport electrification and clean energy, LaRossa released a Tweet in favor of “the Governor’s vision for a clean energy future.” In July 2024, the company’s comments on the update to the state Energy Master Plan broadly supported electrification measures while advocating for a long-term role for fossil gas, including in the building sector. Previously, in July 2022, a Politico article on the Regional Energy Access pipeline expansion in New Jersey noted that PSEG had stated that it would purchase gas from the pipeline, despite state regulators finding that the state is able to meet its gas needs through 2030 with existing infrastructure. The company expressed a similar position in February 2022, when it submitted comments on the New Jersey gas capacity regulatory docket that appeared to support a long-term use of fossil gas without specifying clear conditions around methane abatement measures.
Industry Association Governance: PSEG published an industry association review in its 2023 Sustainability Report published in November 2023, however without including an account of each industry group’s engagement on specific climate policies. PSEG is a member of the Edison Electric Institute (EEI), and the President and COO of subsidiary PSE&G serves on the 2024 Board of Directors for American Gas Association (AGA). EEI advocates for a long-term role for fossil gas and has repeatedly opposed the ambition of the Environmental Protection Agency’s power plant rules, and AGA actively opposes building electrification proposals at all levels of government.