Ratepayer Advocate Seema M. Singh Applauds BPU Decision To Establish Permanent Universal Service Fund in New Jersey

Newark, NJ – Seema M. Singh, New Jersey’s Ratepayer Advocate, today applauded the Board of Public Utilities’ (BPU) decision that provides for a permanent Universal Service Fund (USF) to assist low-income customers with their electric and gas bills.

Ms. Singh said, “We have to protect low-income ratepayers against electric and gas shut-offs. We want all New Jerseyans to have access to affordable electricity and heat through bitterly cold winters like the one we’re experiencing.  In lieu of economic considerations and program development, the $30 million budget should be adequate for the first year of the program as long as there’s an on-going review process for adjustments through program implementation.”

“As the state agency that represents all ratepayers on utilities matters, my office has taken the lead in advocating New Jersey’s need for a permanent Universal Service Program to ensure that the state’s low-income families, seniors and most vulnerable residents have access to affordable energy services.  We’ve worked with the public, along with consumer groups and social service organizations representing New Jersey’s needy citizens, to create an effective program,” Ms. Singh continued.

The Electric Discount and Energy Competition Act requires the BPU to create a non-lapsing USF to guarantee affordable energy service for state residents.  Throughout the Board’s formal decision-making process, the Ratepayer Advocate has actively participated on working groups and consistently taken the position that the permanent USF will make funds available for low-income customers, based upon their percentage of income and energy usage.

“We need an effective Universal Service Program that ensures elderly and poor New Jersey consumers, along with limited-income customers, the opportunity to obtain and maintain quality utility services at affordable rates,” said Ms. Singh.

“Customers also should understand that the easiest and best way to lower their heating bill is to lower their thermostat.  By lowering the thermostat, customers can save money on their bills.  For example, turn down the thermostat at night and again when you head off to work.  While we cannot control the weather, consumers can control their energy usage.  Customers can reduce winter heating bills by using energy efficiently in their homes,” Ms. Singh concluded. 

The USF program contains vital components that the Ratepayer Advocate deems necessary to effectively assist New Jersey consumers, including a fixed credit based on a percentage of household income designed to keep energy bills at affordable levels.  In order to encourage energy conservation, customers are responsible for all amounts over the fixed credit.

In March of last year, the BPU implemented an interim $15 million USF providing eligible customers with a one-time credit of $200.00 for payment of energy utility bills using existing eligibility standards set forth in the federally funded Low Income Home Energy Assistance Program, which establishes eligibility at 175 percent of Federal Poverty Guidelines.  In the interim program, the fixed credit was applied against the outstanding electric and natural gas bills.  All six electric and gas utilities participated in the interim USF with the exception of JCP&L, which was permitted to continue its previously Board approved low-income pilot program.

The Division of the Ratepayer Advocate represents the interests of utility consumers. The Division participates in every case where New Jersey utilities seek changes in their rates or services.  The Ratepayer Advocate also gives consumers a voice in setting long-range energy, water, and telecommunications policy that will affect the delivery of utility services well into the future.

Additional information on this and other matters can be found at the Division of Ratepayer Advocate’s website at http://www.rpa.state.nj.us

 BACK | HOME