Ratepayer Advocate Seema M. Singh’s Comment on Board of Public Utilities’ Decisions on JCP&L’s Deferred Balance, Base Rate Case and Performance Standards

 This was a good day for Jersey Central Power & Light ratepayers.  Instead of an 11 percent increase that the utility was seeking for its residential customers, customers will see their electric bills increase by approximately 3 percent starting August 1^st.

While I am never happy about rate increases, the 3 percent increase is compared to the rate increases that are averaging about 15 percent for the other electric utilities in New Jersey. The Board’s action today on JCP&L’s deferred balance and base rate case is an acceptable decision.

I am very pleased that the BPU endorsed performance standards for JCP&L, which the Ratepayer Advocate has long advocated.  Shareholder dollars – and not the ratepayers’ money – are now at risk if JCP&L does not deliver reliable service.

The BPU will evaluate appropriate performance standards during a six-month to a year-long review for JCP&L at the urging of Governor McGreevey.  We applaud Governor McGreevey for taking this significant step to ensure that JCP&L customers receive reliable service. 

Setting permanent performance standards for JCP&L, and giving the Board of Public Utilities the authority to impose penalties to be paid out of company profits if the utility fails to live up to those standards, puts the shareholders’ money on the line. 

The Ratepayer Advocate has been advocating that the risk be taken off the ratepayers and put on the shareholders.  The ratepayers have been paying for bad service long enough.  It’s time to hold management and the company’s owners responsible for poor performance.

The Division of the Ratepayer Advocate represents the interests of utility consumers and serves as an active participant 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

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