REMARKS
OF SEEMA M. SINGH, ESQ.
ACTING DIRECTOR AND RATEPAYER ADVOCATE
PRESENTED BY BUD UBUSHIN, ESQ.
DEPUTY RATEPAYER ADVOCATE
DIVISION OF THE RATEPAYER ADVOCATE
I/M/O the Petition
of Public Service Electric and Gas Company
for Approval of an Increase in Electric Rates and for Changes in
the Tariff for Electric Service and For Changes in its
Depreciation Rate
BPU Docket No. ER02050303
I/M/O the
Public Service Electric and Gas Company
Consumer Education Program - Year
Two
BPU Docket No. EO01120832
PUBLIC
HEARING
New Brunswick, New Jersey
September 25, 2002
Good evening. My name is Bud Ubushin, 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.
Public Service Electric and Gas Company (“Public
Service” or “Company”) has filed a petition with the Board of Public
Utilities proposing to increase its base rates for electric distribution
service, change its depreciation rate, and institute other tariff revisions. The
Company has stated that it is requesting a total net increase in annual revenue
of $250 million. The Company’s proposal would result in an increase from
$693.85 to $789.93, or 13.8%, in the bill for a typical residential electric
customer using 6,600 kWhr annually, which translates into usage of 550 kWhrs per
month, on average.
Public Service also filed a Petition with the
Board of Public Utilities to recover from its electric and gas customers $10
million of Consumer Education Program (“CEP”) costs incurred during the
twelve months ending March 13, 2001, and the balance of Year One CEP costs not
yet collected through rates, plus interest, with recovery to become effective on
August 1, 2003. The Company’s
proposed recovery of CEP costs would result in an annual increase of $2.27, or
0.33%, for a typical residential electric customer, with an annual usage of
6,600 kWhr; and an annual increase of $1.68, or 0.14% for a residential gas
customer using 1,252 Therms per year.
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.
We have retained the services of experts, including utility accounting
experts and economists, to assist us in our review of this case.
The Ratepayer Advocate will cross-examine the utility’s witnesses and submit evidence at upcoming evidentiary hearings. Our experts will offer testimony in opposition to various portions of Public Service’s proposal to increase your rates. However, 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’ request for rate modifications.
The Ratepayer Advocate has significant concerns about the extent of the
requested increase. Our inquiry is focused on these critical issues: whether the
data supporting the programs and expenditures driving the proposed rate increase
ultimately explains the necessity of these expenses and, also, whether the
Company’s proposal allows ratepayers to pay the lowest rates possible
consistent with receiving safe, reliable and proper service.
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 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 proposal and our preparations for the evidentiary hearings.
This hearing is being transcribed and your comments will become part of the record. The Administrative Law Judge will instruct you to announce your name and address before you speak. 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, I would like to thank you for attending tonight’s hearing.