New Jersey's 40th Legislative District

Senator Kevin O'Toole

Senator Kevin O'Toole

O’Toole Calls For Immediate Denial of JCP&L’s Attempted $31M Annual Rate Increase

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Senator Kevin O’Toole (R-Bergen, Essex, Passaic and Morris) urged New Jersey Board of Public Utilities President Robert Hanna to immediately deny JCP&L’s request to raise rates by nearly $31.5 million per year.

“The state’s second-largest utility has no shame,” O’Toole said. “Its parent company has raked in a $149 million increase in net income over last year, as the utility failed to adequately serve ratepayers in the aftermaths of Hurricane Irene and Sandy. Their application to suck more out of our residents’ pockets is utterly offensive.”

The text of Senator O’Toole’s letter to BPU President Hanna is italicized below. The Senator is also a lead sponsor of the Storm Response Act of 2012, aimed to significantly decrease or nullify the time New Jerseyans are without utilities in the wake of natural disasters and emergencies, by holding utilities financially accountable.

Dear President Hanna,

I write to you after reading an article in the Star-Ledger on November 30, 2012, that JCP&L has applied to the BPU for a rate increase.

This is an incredibly outrageous request and I ask that the BPU immediately deny it.

For JCP&L to apply for a rate increase after the poor performance they showed in the aftermaths of Hurricane Irene, the October 2011 snowstorm and now Hurricane Sandy, there are absolutely no grounds on which this request should have any merit. Taking aside the apparent lack of a coordinated plan to restore power to customers not just in District 40, but also throughout New Jersey, the reports of constant misinformation, lack of proper communication, and an overall apparent lack of preparation are grounds for denying this request.

It is reported in the same Star-Ledger article that JCP&L hopes to raise $31 million from this rate increase to pay for infrastructure improvements. Allow me to point out that JCP&L is a subsidiary of FirstEnergy Corporation of Ohio, and according to their press release on November 8, 2012 (enclosed), FirstEnergy reported a net income increase of $149 million for the first 9 months of 2012 versus 2011. Given the apparent healthy state of revenues for FirstEnergy, coupled with JCP&Ls poor performance during the aftermath of the past 3 storms, the costs of these improvements should be paid for by JCP&L and/or FirstEnergy not the residents of New Jersey.

The frustration and suffering that the residents of District 40 and New   Jersey have experienced because they have the extreme misfortune of being JCP&L customers can not be ignored. To now tell them they must pay more to the same energy provider is patently unfair. As lawmakers, we must not allow utility companies – who fail to efficiently provide a service they are paid for, to continue to abuse the residents of New Jersey without repercussions. Approving this rate increase would effectively be discarding what the residents of our State have experienced. It is my hope and strong request, that the BPU immediately deny this rate increase.

Should you have any additional questions, please feel free to contact my office.    


                                                                        Kevin J. OToole

                                                                        Senator, District 40

Cc: Hon. Chris Christie, Governor, State of New Jersey

       Jeanne Fox, Commissioner, New Jersey Board of Public Utilities

       Joseph Fiordaliso, Commissioner, New Jersey Board of Public Utilities

       Hon. Nicholas Asselta, Commissioner, New Jersey Board of Public Utilities

       Hon. Mary-Anna Holden, Commissioner, New Jersey Board of Public Utilities

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