REMARKS
OF SEEMA M. SINGH, ESQ.
RATEPAYER ADVOCATE
PRESENTED BY HENRY M. OGDEN, ESQ.
ASSISTANT DEPUTY RATEPAYER ADVOCATE
DIVISION OF THE RATEPAYER ADVOCATE
In
the Matter of the Petition of Public Service Electric and Gas Company
for Approval of an Increase in Gas Rates, Depreciation Rates for Gas Property,
and for Changes in the Tariff for Gas Service
BPU
Docket No. GR05100845
PUBLIC
HEARING
Mount Holly, New Jersey
May 2, 2006
7:00 p.m.
Good evening. My name is Henry
Ogden, and I am an Assistant Deputy Ratepayer Advocate for 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.
On September 30, 2005 Public Service Electric and Gas Company (“Company”)
filed a Petition with the New Jersey Board of Public Utilities (“Board”)
seeking approval to increase its rates for natural gas service by $132.8
million. The increase being requested by the Company is for natural gas
distribution service, that is, the rates that that cover the costs distributing
natural gas through the Company’s natural gas distribution pipelines to
end users, and the costs of administering customer accounts such as metering,
billing, and customer service. The proposed increase is in addition to
the recent rate increases for Basic Gas Supply Service (“BGSS”), which
covers the cost of the natural gas commodity purchased by the Company
for its customers. The Company is also seeking to make a number of changes
to its Board-approved tariff for natural gas service.
The requested rate increase would result in a 3.52 percent increase in
the Company’s total revenues for natural gas service. The Company’s Petition
states that the requested increase is necessary as a result of capital
investments and increases in operation and maintenance expenses since
the Company’s last gas base rate case in 2001. The Company is proposing
to allocate a larger percentage increase to residential customers than
to other customer classes. Under the Company’s proposal, an average monthly
bill for a typical residential heating customer using an average of 100
therms per month would increase by about $7.74 per month, or $92.92 per
year.
Our office has a team of attorneys and expert consultants analyzing the
company’s petition. We are conducting a complete and thorough investigation
of the rate increases and other changes being sought by the company. We
have requested and are receiving detailed information from the company
about their purported needs. At evidentiary hearings, we will cross examine
the company’s witnesses and submit evidence. The Ratepayer Advocate is
fully aware of the recent increases in energy prices that are having a
profound impact on all classes of ratepayers. The Ratepayer Advocate’s
inquiry is focused on the critical issue of whether the Company’s proposal
allows ratepayers to pay the lowest rates possible consistent with receiving
safe, reliable and proper service. However, it is important that you be
aware that the ultimate decision regarding all utility matters in New
Jersey is made by the Board of Public Utilities.
The purpose of this open public 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 in order to represent your interests in
the legal process. We strongly encourage your participation, which will
help us evaluate the Company’s proposal and prepare 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 this public
hearing.
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