REMARKS
OF SEEMA M. SINGH, ESQ.
RATEPAYER ADVOCATE
PRESENTED BY SUSAN McCLURE, ESQ.
ASSISTANT DEPUTY RATEPAYER ADVOCATE
DIVISION OF THE RATEPAYER ADVOCATE
In
the Matter of the Petition of Lake Valley Water Company, Inc. for an
Increase in Rates for Water Service and other Tariff Changes
BPU
Docket No. WR04070722
OAL Docket No.: PUCRS 006940-2004S
PUBLIC
HEARING
Pemberton, New Jersey
November 5, 2004
7:00 p.m.
Good evening everyone, my name is Susan McClure. I am an attorney representing the New Jersey Division of the Ratepayer Advocate (“Ratepayer Advocate”). Our office was created by the New Jersey Legislature to protect the interests of all utility consumers and to represent ratepayers in cases such as this where a utility seeks changes in their rates or services.
In order to effectively
represent the public in utility rate cases, our office uses a team of lawyers,
accountants, economists and engineers to analyze requests for rate and service
changes filed by companies who provide energy, water, and telecommunications
services in New Jersey.
In the present case, Lake Valley Water Company, Inc. (“Lake Valley”)
is a public utility engaged in the furnishing of water service to a portion
of the Township of Pemberton, within Burlington County, New Jersey.
On July 29, 2004, Lake Valley filed a petition with the New Jersey Board of Public Utilities (“Board” or “BPU”) seeking approval for an increase in base water rates of 47.9% or $128,173 in annual revenues. The average residential water customer consuming approximately 15,000 gallons per quarter, presently paying approximately $84.58 per quarter, would pay $125.28 per quarter under the proposed rates, which equates to a 48.12% increase.
The Ratepayer Advocate is currently conducting a complete and thorough investigation of Lake Valley’ request for a rate increase in order to evaluate whether and to what extent an increase in rates is proper at this time. We have requested and received detailed information from Lake Valley about the purported need for the rate increase. We have already begun that review by issuing questions to Lake Valley, seeking to discover detailed information regarding the proposed rate and tariff changes and requesting that Lake Valley justify its expenses and provide evidence to support its calculations.
We are in the process of analyzing the data received from Lake Valley. Our consultants will offer testimony regarding various portions of this proposal to increase your rates. We can state at this time that we have some serious concerns regarding the requested increase. We are focusing especially on these critical issues:
• Whether the data supporting the proposed rate increase is complete, consistent and accurate;• Whether or not the Company’s request is consistent with the law and the Board of Public Utilities policies and regulations;
• Whether or not the Company’s proposal will allow the utility to provide safe, adequate and proper service at the lowest possible price;
• Whether or not the Company will be treating all of its customers consistently and fairly.
We expect to question Lake Valley' representatives about these concerns and
to raise them at any settlement meetings. In the event evidentiary hearings
are scheduled, we will cross-examine any witnesses that the Company might present,
and submit expert testimony in support of our own recommendations. However,
it is important that you are aware that the ultimate decision regarding this
requested increase will be made by the Board.
The purpose of this public hearing this evening is for you, the customer, to voice your opinion, relate your experiences and offer comments about Lake Valley’ 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 Administrative Law Judge and BPU make their 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 Miller will instruct you to give your name and address before you speak. Please also be sure you put your name and address on the sign in sheets I have placed in the back of the room. 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 public hearing.