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REMARKS
OF SEEMA M. SINGH, ESQ.
BPU Docket No. GR05060494 PUBLIC
HEARING
Elizabethtown Gas Company (“Elizabethtown” or the “Company”) filed a Petition (“Petition”) with the New Jersey Board of Public Utilities (“Board” or “BPU”) on June 1, 2005. The Company requested permission to: (1) increase its Basic Gas Supply Service (“BGSS”) rate by 3.55 cents per therm, from the current 83.69 cents per therm to 87.24 cents per therm; (2) to revise its commercial and industrial air conditioning (“CIAC”) rates so that the applicable BGSS-M rate will apply; (3) an increase in its commodity rate from $0.5438 per dekatherm to $1.0343 per dekatherm after tax, all to become effective October 1, 2005. On July 25, 2005, the Company filed an amendment to the Petition to request that the proposed rate increase be implemented beginning September 1, 2005, instead of October 1, 2005, due to significant increases in the price of natural gas since the petition was filed and volatility in the natural gas markets. With this increase, an average monthly bill for a typical residential heating customer using an average of 100 therms per month would increase by about $3.55 per month, or approximately 2.82 %. In addition to the requested 2.82 % increase, the Board, in an Order dated January 6, 2003, granted the Company and other New Jersey gas utilities permission apply two self-implementing commodity rate increases of up to five percent on a 100 therm per month average residential bill. The Company is permitted to implement such increases as of December 1, 2005 and February 1, 2006, upon notice to the Board and to the Ratepayer Advocate. The Company is not permitted to make a profit on its BGSS charges. BGSS rates are set to pass through the cost of natural gas purchased by the Company. The Ratepayer Advocate is fully aware of the volatility in natural gas prices that is having a profound impact on all classes of ratepayers. However, this office will continue its comprehensive review prior to a final determination and order by the Administrative Law Judge and the Board of Public Utilities regarding the Company’s final BGSS rate. Our office is conducting a complete investigation of the Company’s request based upon the information that is being supplied and updated by the Company. We have retained the services of an expert consultant to assist us in our review. The Ratepayer Advocate’s inquiry is focused on the critical issues of whether the Company’s proposal allows ratepayers to pay the lowest rates possible consistent with receiving safe, reliable and proper service. The New Jersey Board of Public Utilities, with legal submissions from the parties, including the Ratepayer Advocate, will make the final decision regarding the utility’s requests for and adjustment to its BGSS charge. The purpose of this hearing is for you, the customer, to voice your opinion, relate your experiences and offer comments about your Company’s rates and service. It is important that you express your views so they may become part of the record on which the Administrative Law Judge and the Board of Public Utilities make their decisions. The Ratepayer Advocate also needs to hear your views. Your active participation is strongly encouraged to help in our evaluation of the Company’s proposals and our preparations for the evidentiary hearings. This hearing is being transcribed and your comments will become part of the record. I would like to reiterate the importance of your participation so that the Ratepayer Advocate can have a clear record of your concerns and interests. On behalf of the Ratepayer Advocate, thank you for attending tonight’s hearing. |
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