STATE OF NEW JERSEY
Division of The Ratepayer Advocate
31 Clinton Street, 11th Fl
P. O. Box 46005
Newark, New Jersey 07101
Press Release
For Immediate Release Thursday, June 26, 2003 |
For
Further Information |
Ratepayer Advocate Seema M. Singh Applauds BPU Decision
To Establish Permanent Universal Service Fund in New Jersey
Newark, NJ –
Seema M. Singh, New Jersey’s Ratepayer Advocate, today applauded the
Board of Public Utilities’ (BPU) decision that provides for a permanent
Universal Service Fund (USF) to assist low-income customers with their electric
and gas bills.
Ms. Singh said, “We have to protect low-income
ratepayers against electric and gas shut-offs. We want all New Jerseyans to have
access to affordable electricity and heat through bitterly cold winters like the
one we’re experiencing. In lieu
of economic considerations and program development, the $30 million budget
should be adequate for the first year of the program as long as there’s an
on-going review process for adjustments through program implementation.”
“As the state agency that represents all ratepayers
on utilities matters, my office has taken the lead in advocating New Jersey’s
need for a permanent Universal Service Program to ensure that the state’s
low-income families, seniors and most vulnerable residents have access to
affordable energy services. We’ve
worked with the public, along with consumer groups and social service
organizations representing New Jersey’s needy citizens, to create an effective
program,” Ms. Singh continued.
The Electric Discount and Energy Competition Act
requires the BPU to create a non-lapsing USF to guarantee affordable energy
service for state residents. Throughout
the Board’s formal decision-making process, the Ratepayer Advocate has
actively participated on working groups and consistently taken the position that
the permanent USF will make funds available for low-income customers, based upon
their percentage of income and energy usage.
“We need an effective Universal Service Program that
ensures elderly and poor New Jersey consumers, along with limited-income
customers, the opportunity to obtain and maintain quality utility services at
affordable rates,” said Ms. Singh.
“Customers also should understand that the easiest
and best way to lower their heating bill is to lower their thermostat.
By lowering the thermostat, customers can save money on their bills.
For example, turn down the thermostat at night and again when you head
off to work. While we cannot
control the weather, consumers can control their energy usage.
Customers can reduce winter heating bills by using energy efficiently in
their homes,” Ms. Singh concluded.
The USF program contains vital components that the
Ratepayer Advocate deems necessary to effectively assist New Jersey consumers,
including a fixed credit based on a percentage of household income designed to
keep energy bills at affordable levels. In
order to encourage energy conservation, customers are responsible for all
amounts over the fixed credit.
In March of last year, the BPU implemented an interim
$15 million USF providing eligible customers with a one-time credit of $200.00
for payment of energy utility bills using existing eligibility standards set
forth in the federally funded Low Income Home Energy Assistance Program, which
establishes eligibility at 175 percent of Federal Poverty Guidelines.
In the interim program, the fixed credit was applied against the
outstanding electric and natural gas bills.
All six electric and gas utilities participated in the interim USF with
the exception of JCP&L, which was permitted to continue its previously Board
approved low-income pilot program.
The Division of the Ratepayer
Advocate represents the interests of utility consumers. The Division
participates in every case where New Jersey utilities seek changes in their
rates or services. The Ratepayer
Advocate also gives consumers a voice in setting long-range energy, water, and
telecommunications policy that will affect the delivery of utility services well
into the future.
Additional
information on this and other matters can be found at the Division of Ratepayer
Advocate’s website at http://www.rpa.state.nj.us