In the Matter of the Petition of NUI Utilities, Inc. d/b/a Elizabethtown Gas Company for Approval of Increased Base Tariff Rates and Charges for Gas Service and Other Tariff Revisions BPU Docket No. GR02040245

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

PUBLIC HEARING
Rahway, New Jersey
September 17, 2002

Good evening. My name is Sarah H. 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.

Our office represents the public in utility rate cases. A team of lawyers, accountants and economists analyze requests for rate and service changes filed by companies that provide utility and telecommunications services in New Jersey.

Elizabethtown Gas Company has filed a petition with the Board of Public Utilities proposing to increase base rates and institute other tariff revisions. The Company is requesting a total increase of $28,633,000, which would directly impact residential rates. This increase would result in the average customer’s (one who uses 100 therms of gas per month) bill increasing by approximately $12.16 per month, or 12.5 per cent.

Our office is conducting a complete and thorough investigation and evaluation of the Company’s Petition based upon the information that is being supplied and updated by the Company. At this point in time, our office has found that the Company’s proposed rate increase is disproportionate, and has opposed the Company’s Petition. We have submitted testimony in support of a $7.46 million rate increase. Our office feels that this amount more properly reflects the Company’s revenue requirements and disallows a number of special charges and certain capital projects. The impact of our proposal on the average consumer’s monthly bill would be approximately a $2.99 increase, or a 2.3 per cent increase of the average customer’s monthly bill. The Ratepayer Advocate feels that this amount is reasonable based upon our detailed review of the financial data submitted so far by the Company and that the amount is appropriate in order to ensure that the Company continues to provide safe, adequate and reliable service.

At evidentiary hearings, we will cross-examine the utility’s witnesses and submit evidence. However, it is important that you are aware that the ultimate decision regarding all rate modifications in New Jersey is made by the Board of Public Utilities.

As noted, we have analyzed data from the Company. At the hearings, our consultants will offer testimony in opposition to various portions of Elizabethtown’s proposal to increase your rates.

Our office has significant concerns about the extent of the requested increase. We are focusing especially on these critical issues: whether the data supporting the programs and expenditures driving the proposed rate increase ultimately explains the necessity of these expenses at this time and, also, whether the company’s proposal allows ratepayers to pay the lowest rates possible consistent with receiving safe, reliable and proper service. We expect to question company witnesses about these concerns during cross-examination and to raise them at any settlement meetings.

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 any service problems you may be experiencing. It is important that you express your views, because they will become part of the record on which the Board of Public Utilities makes its decisions. The Ratepayer Advocate also needs 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 Gural of the Office of Administrative Law will instruct you to announce your name and address before you speak. I would like to reiterate the importance of this so that the Ratepayer Advocate can have a clear record of your concerns and interests.

On behalf of the Ratepayer Advocate, I would like to thank you for attending this meeting.