Frank Perrotti, Director Division of Energy NJ Board of Public Utilities Two Gateway Center Newark, NJ 07102

Henry M. Ogden, Acting Secretary NJ Board of Public Utilities Two Gateway Center Newark, NJ 07102

RE: I/M/O THE PROVISION OF BASIC GENERATION SERVICE PURSUANT TO THE ELECTRIC DISCOUNT AND ENERGY COMPETITION ACT

BPU DOCKET NO. EX01050303

Dear Mr. Perrotti & Mr. Ogden:

In preparation for the upcoming basic generation service (BGS) auction, currently scheduled for February 4, 2002, we have been reviewing the Board's December 11, 2001 Decision and Order in this matter as well as other materials relating to the auction. Based on this review, we believe that a number of aspects the procedure envisioned by the Board for the conduct of the auction and the review and approval of the results require clarification. Please accept this letter as the Ratepayer Advocate's request for clarification of these issues, as set forth below.

1. The Board's Decision and Order provides for input to the Board by the utilities and the Board's Staff before the Board makes its decision as to whether to approve the results of the auction. Will the Board be providing the Ratepayer Advocate, other interested parties, and members of the ratepaying public with an opportunity to review the reasonableness and prudency of utilities' conduct of the auction, and the auction results? What specific procedures will be followed by the Board to afford the Ratepayer Advocate and other parties with the opportunity to provide the Board with such input?

2. What information will be made available to the Ratepayer Advocate, other interested parties, and members of the public by which utilities' conduct of the auction, and the auction results, can be evaluated. What specific information will be made available, and at what point in the time line set forth in Attachment A to the Board's Decision and Order will the information be made available?

3. Attachment A to the Board's Decision and Order states that a "full factual report" will be provided to the Board by the Auction Manager and the Board Advisor prior to the Board's decision as to whether to approve the results of the auction. Will this report and underlying documentation be made available to the Ratepayer Advocate, other interested parties, and the public, and if so at what time?

4. How will the Board provide adequate public notice, in compliance with the New Jersey Open Public Meetings Act, of the special Board meeting at which the auction results will be considered? What other measures will be undertaken to assure that the ratepaying public is aware of this important Board meeting?

We would appreciate your prompt responses to the above questions, so that we may properly represent New Jersey's utility consumers in connection with the upcoming BGS auction.

BAP/bj

c: President Designee Jeanne M. Fox
Acting President Frederick F. Butler
Commissioner Carol J. Murphy
Commissioner Connie O. Hughes
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