I/M/O
the Motion of Public Service Electric and Gas Company To Increase Its Gas
Plant Remediation Adjustment Clause & To Make Changes in Tariff Rates
B.P.U.J.N.J. No. 13, Gas Pursuant to N.J.A.C. 48:2-21 and 48:2-21.1
BPU Docket No. GR03060436
OAL Docket No. PUC 07334-03N
PUBLIC HEARING
Hackensack, New Jersey
November 20, 2003
My name is Sarah Steindel.
I am an attorney representing the New Jersey Division of the Ratepayer
Advocate. The Division of the Ratepayer
Advocate (the “Ratepayer Advocate) 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 &
Gas (“PSE&G”) has filed a Petition with the Board of Public Utilities to
recover $18.645 million expended in its Manufactured Gas Plant Remediation Program
(Remediation Program or Program Costs). This Remediation Program was developed
to clean up the Company’s 38 former manufactured gas plant sites under the direction
of the New Jersey Department of Environmental Protection with financial oversight
by the Board of Public Utilities and the Division of the Ratepayer Advocate.
Pursuant to Board Order, Program Costs are nallocated to PSE&G’s
Gas and Electric Units on a 60/40 percent basis and are recovered over a rolling
seven-year period. In this filig the Company is seeking a determination that
its Program Costs incurred during the period August 1, 2001 through July 31,
2002 are recoverable effective on or about January 1, 2004.
Approval of the requested
amount would result in an increase in customers’ natural gas and electric rates.
The rate for firm gas, interruptible and transportation customers would be increased
from 0.4604 to 0.5695 cents per therm including Sales and Use Tax, an increase
of approximately $1.36, or 0.09 percent in the annual bills of a typical residential
customer using 1,252 therms per year and 200 therms per month during the winter
heating period. The proposed rate for residential electric customers would result
in an increase from 0.0340 to 0.0436 cents per kilowatt hour, including Sales
and Use Tax, an increase of approximately $0.85, or 0.10 percent in the annual
bills of a typical residential customer using 6960 kilowatt hours per year and
722 kilowatt hours per month during the summer. The proposed increases would
be reflected in the Societal Benefit Clause rates to be implemented on or about
January 1, 2004.
Our office represents the public in utility
rate cases, and reviews all proposed changes in rates as they affect the various
customer classes. As necessary, we work with a team of accountants, economists
and lawyers to analyze the cases, especially where there are requests for rate
increases. We are currently conducting
a complete and thorough investigation of PSE&G’s request to evaluate the
filing. For that purpose, we will
request and review detailed information from the Company about its Remediation
Program and the costs incurred.
In our investigation of this case, the
Ratepayer Advocate has focused on the following issues:
At evidentiary hearings, we will cross-examine PSE&G’s witnesses and submit
evidence through the testimony of our witnesses.
However, the ultimate decision regarding all rate modifications in New
Jersey is made by the Board of Public Utilities.
We currently have a team of attorneys
and an expert consultant analyzing data from the Company.
As appropriate, this consultant will offer testimony regarding PSE&G’s
proposal to increase your rates. We
are in the process of discovery now.
The
purpose of this public hearing tonight is for you, the customer, to voice your
opinion, relate your experiences and offer comments about PSE&G’s rates
and any service problems you may be experiencing.
It is important that you express your views, as they become part of the
record on which the Board of Public Utilities makes its decisions.
The Ratepayer Advocate also wants to hear your views.
We strongly encourage your participation, which will help us evaluate
the Company’s proposal and prepare for the hearings.
This hearing is
being transcribed and your comments will become part of the record.
Judge McGill of the Office of Administrative Law will instruct you to
give your name and address before you speak.
I would like to reiterate the importance of this so that there will be
a clear record of your concerns and interests.
On behalf of the
Ratepayer Advocate, I would like to thank you for attending this evening.