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REMARKS OF SEEMA M. SINGH, ESQ.
RATEPAYER ADVOCATE
PRESENTED BY SARAH H. STEINDEL, ESQ.
ASSISTANT DEPUTY RATEPAYER ADVOCATE
DIVISION OF THE RATEPAYER ADVOCATE
In the Matter of the Petition of New Jersey Natural
Gas Company
to Eliminate Pool Heater Rate Classification
BPU Docket No. GR04111412
PUBLIC HEARING
Freehold, New Jersey
January 26, 2005
7:00 p.m.
Good evening. My name is Sarah Steindel, 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.
New Jersey Natural Gas Company (NJNG or the Company) filed a Petition
with the New Jersey Board of Public Utilities (Board or BPU) on November
2, 2004. The Company is requesting the Board’s approval to eliminate
tariff provisions that offer a discount from regular residential rates
for residential customers with natural gas pool heaters. This rate has
been available since 1994 to residential customers with natural gas pool
heaters who apply to the Company for the special rate. Customers taking
service under the pool heater rate classification receive a discounted
price for all gas consumed in excess of 35 therms per month during the
months of May through September. According to the petition, the Company
is seeking to eliminate the pool heater rate classification in response
to the State’s ongoing emphasis on the environmentally responsible
use of energy, and in response to high and volatile prices in the current
market for natural gas.
The amount of the discount varies from year to year based on conditions
in the natural gas market. Based on the rates in effect in July 1, 2004,
an average pool heating customer using 400 therms over the pool heating
season would experience an increase of approximately $110 over the season
if the special rate were eliminated. That same customer could potentially
offset the impact of the rate change and experience little or no impact
on total gas bills for the season by reducing usage for pool heating by
approximately 25%. In order to help the affected customers reduce their
usage of natural gas, the Company’s petition includes a proposal
to offer financial incentives to those customers currently receiving service
under the pool heating rate classification who purchase solar pool covers
during the first season.
Our office is investigating the Company’s proposal based upon the
information that is being supplied by the Company. The Ratepayer Advocate’s
inquiry is focused on whether the Company’s proposal is reasonable
and fair to both pool heating customers and the Company’s other
ratepayers. The New Jersey Board of Public Utilities, with legal submissions
from the Company and the Ratepayer Advocate, will make the final decision
regarding the utility’s proposal.
The purpose of this hearing is for you, the customer, to voice your opinion,
relate your experiences and offer comments about the Company’s rates
and service. It is important that you express your views so they may become
part of the record on which the Board of Public Utilities makes its decision.
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.
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 tonight’s
hearing.
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