Calling today’s decision by the Board of Public Utilities (BPU) to suspend for one year a plan by JCP&L to raise rates this summer for high usage residential and commercial customers nothing more than political posturing, Senator Andy Ciesla and Assemblymen Dave Wolfe and Jim Holzapfel chastised the agency for not permanently rejecting the rate hike.
The 10th Legislative District lawmakers also expressed their dismay with the BPU for not properly vetting the proposal before allowing the increase.
“If the BPU thought this rate hike was bad enough to suspend for a year, then it’s bad enough to do away with completely, ” said Ciesla. “How convenient for the BPU to defer the increase until after the gubernatorial election. All it does is give Governor Corzine breathing room on the campaign trail. How nice for the BPU to cut the governor a break. Too bad our taxpayers and consumers aren’t given the same consideration.”
Wolfe noted that while they are glad consumers are being granted a temporary reprieve from potentially higher rates this summer, they questioned the BPU’s handling of the proposal.
“The BPU put the cart before the horse on this one and in doing so caused many consumers a whole lot of unnecessary anxiety, ” said Wolfe, R-Ocean and Monmouth. “Imagine the panic the BPU caused among middle class families, senior citizens, people with critical medical needs and small business owners, all of whom have all been at ground zero of this state’s economic crisis, when it arbitrarily approved this increase.
“Although temporary, I’m sure these groups are breathing a collective sigh of relief with today’s decision, however, had the BPU permitted public hearings on the matter instead of rubber stamping the proposal, it could have avoided a tremendous amount of undue worry for folks already facing an unbearable tax burden, job losses and debt.”
JCP&L last month announced plans to charge residential customers 9 cents more per kilowatt hour if they exceeded usage thresholds June through September. Businesses were facing increases on a sliding scale starting at 2 cents more per kilowatt hour. The utility company said it was an effort to encourage energy conservation. Since the plan was considered to be “net revenue neutral” for JCP&L, public hearings were not required.
“With our residents and businesses already facing more than $1 billion in tax increases under Governor Corzine’s budget proposal for the upcoming fiscal year, the BPU should have immediately rejected this rate hike, ” stated Holzapfel, R-Ocean and Monmouth. “But they apparently learned well from the governor. Just as he deferred wage increases for labor unions last week, the BPU followed his lead to defer a rate increase for consumers. What’s the common denominator in the two matters? They both benefit Governor Corzine’ re-election bid.”
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August 24, 2009
