REMARKS
OF SEEMA M. SINGH, ESQ.
RATEPAYER ADVOCATE
PRESENTED BY PAUL E. FLANAGAN, ESQ.
ASSISTANT DEPUTY RATEPAYER ADVOCATE
DIVISION OF THE RATEPAYER ADVOCATE
In the Matter of the Petition of Public Service Electric and Gas
Company’s 2005/2006 Annual BGSS Commodity Charge Filing for its
Residential Gas Customers Under its Periodic Pricing Mechanism and
for Changes in its Gas Tariff
BPU
Docket No. GR05050470
PUBLIC HEARING
Mount Holly, New Jersey
July 28, 2005
7:00 p.m.
Good evening. My name is Paul E. Flanagan, and I am an attorney representing
the New Jersey Division of the Ratepayer Advocate. Our office was created
by the New Jersey Legislature to represent ratepayers in cases such as
this where a utility seeks an increase in rates or change in services.
Public
Service Electric and Gas Company (“Public Service” or the
“Company”) filed a Petition (“Petition”) with
the New Jersey Board of Public Utilities (“Board” or “BPU”)
on May 27, 2005. The Company has requested an additional annual Basic
Gas Supply Service (“BGSS”) gas revenue charge increase of
10.2% to be implemented for service rendered during the period of October
1, 2005 through September 30, 2006. In addition, the company has requested
an increase for the BGSS-RSG Commodity Service from the re-stated current
charge of 74.7767 cents per therm to a charge of 86.5226 cents per therm.
Also, the Company has requested an increase in its Balancing Charge from
the current charge of 8.0280 cents per therm to a charge of 8.6531 cents
per therm which is applicable only through the period of November to March.
Furthermore, the Company has requested an increase in its Storage Inventory
Carrying Charge of approximately 1.4696 cents per therm for the balancing
portion and 1.8858 cents per therm of the commodity portion. Moreover,
pursuant to permission granted by a Board Order dated January 6, 2003,
upon notice to the Board and to the Ratepayer Advocate, the Company may
also apply a self-implementing commodity rate increase up to five percent
on a 100 therm per month average residential bill (1200 therms annually),
which represents an annualized increase of approximately $76.32 as of
December 1, 2005 and an additional approximate annualized increase of
$76.20 on February 1, 2006. Finally, on July 22, 2005, the Company filed
an amendment to the petition to request that the proposed increase be
implemented beginning September 1, 2005, instead of October 1, 2005, due
to gas price volatility.
With
this rate increase, the average residential annual bill in comparison
to the current and anticipated BGSS charges, which includes, an increase
in its Balancing Charge shows an increase of approximately 10.6%. The
total revenue increase requested by Public Service is approximately $162.7
million. The Company does not make a profit on this amount, as it is the
pass-through price of the commodity. The Company is requesting an extension
of the Commodity Charge settlement set forth in the 2004/2005 Annual BGSS
Commodity Charge filing approved in the Order until further notice or,
when the issue is addressed by the Board. In conclusion, the Company states
during the period beginning on October 5, 2004 to the recent filing of
this proceeding, the Company has not encountered any main breaks caused
by third parties accruing losses of natural gas valued at $ 50,000 or
more.
The Ratepayer
Advocate is fully aware of the current issues concerning the Company,
as well as the gas market 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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