njhome | my new jersey | people | business | government | departments

State Of New Jersey Division of Ratepayer Advocate  


REMARKS OF SEEMA M. SINGH, ESQ.
RATEPAYER ADVOCATE
PRESENTED BY SARAH H. STEINDEL, ESQ.
ASSISTANT DEPUTY RATEPAYER ADVOCATE
DIVISION OF THE RATEPAYER ADVOCATE

In the Matter of the Petition of New Jersey Natural Gas Company
for the Annual Review and Revision of its
Basic Gas Supply Service (BGSS) Factor for F/Y 2006

BPU Docket No. GR05060488

PUBLIC HEARING
Freehold, New Jersey
August 3, 2005
7:00 p.m.


Good evening. My name is Sarah Steindel, 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.

New Jersey Natural Gas Company (“New Jersey Natural” 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 increase its Basic Gas Supply Service (“BGSS”) rate by 5.4 cents per therm, from the current 89.2 cents to 94.6 cents per them, effective October 1, 2005. On July 21, 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 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 $5.40, or 4.2 percent.

In addition to the requested 4.2 percent 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 total additional impact of both five percent increases would be $13.83 per month based on an average 100-therm residential bill.

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.


 

contact us | privacy notice | legal statement | accessibility statement

 
ratepayer advocate: home | electric | gas | telco | water/wastewater | news & info. | press releases | case matters | publications | consumer info. | links
statewide: njhome | business | government | departments | search

Copyright (c) State of New Jersey, 1996 - 2003
New Jersey Division Of The Ratepayer Advocate
31 Clinton Street 11th Fl.
Newark, NJ 07101