REMARKS OF SEEMA M. SINGH, ESQ.
ACTING DIRECTOR AND RATEPAYER ADVOCATE
PRESENTED BY SARAH H. STEINDEL, ESQ.
DEPUTY RATEPAYER ADVOCATE
DIVISION OF THE RATEPAYER ADVOCATE
In
the Matter of the Petition of NUI Utilities, Inc. d/b/a Elizabethtown Gas
Company for Approval of Increased Base Tariff Rates and Charges for Gas Service
and Other Tariff Revisions BPU Docket No. GR02040245
PUBLIC HEARING
Rahway, New Jersey
September 17, 2002
Good evening. My name is Sarah H. 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.
Our office represents the public in utility rate cases. A team of lawyers, accountants and economists analyze requests for rate and service changes filed by companies that provide utility and telecommunications services in New Jersey.
Elizabethtown
Gas Company has filed a petition with the Board of Public Utilities proposing to
increase base rates and institute other tariff revisions. The Company is
requesting a total increase of $28,633,000, which would directly impact
residential rates. This increase would result in the average customer’s (one
who uses 100 therms of gas per month) bill increasing by approximately $12.16
per month, or 12.5 per cent.
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. At this point in time, our office has found that the
Company’s proposed rate increase is disproportionate, and has opposed the
Company’s Petition. We have submitted testimony in support of a $7.46 million
rate increase. Our office feels that this amount more properly reflects the
Company’s revenue requirements and disallows a number of special charges and
certain capital projects. The impact of our proposal on the average consumer’s
monthly bill would be approximately a $2.99 increase, or a 2.3 per cent increase
of the average customer’s monthly bill. The Ratepayer Advocate feels that this
amount is reasonable based upon our detailed review of the financial data
submitted so far by the Company and that the amount is appropriate in order to
ensure that the Company continues to provide safe, adequate and reliable
service.
At evidentiary hearings, we will cross-examine the utility’s witnesses
and submit evidence. However, it is important that you are aware that the
ultimate decision regarding all rate modifications in New Jersey is made
by the Board of Public Utilities.
As noted, we
have analyzed data from the Company. At the hearings, our consultants will offer
testimony in opposition to various portions of Elizabethtown’s proposal to
increase your rates.
Our
office has significant concerns about the extent of the requested increase. We
are focusing especially on these critical issues: whether the data supporting
the programs and expenditures driving the proposed rate increase ultimately
explains the necessity of these expenses at this time and, also, whether the
company’s proposal allows ratepayers to pay the lowest rates possible
consistent with receiving safe, reliable and proper service. We expect to
question company witnesses about these concerns during cross-examination and to
raise them at any settlement meetings.
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, because they will become part of the record on which the Board of Public Utilities makes its decisions. The Ratepayer Advocate also needs to hear your views. We strongly encourage your participation, which will help us evaluate the Company’s proposal and prepare for the hearings.
This hearing is being transcribed and your comments will become part of the record. Judge Gural of the Office of Administrative Law will instruct you to announce your name and address before you speak. I would like to reiterate the importance of this 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 this meeting.
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