JCP&L Wants Rate Hike for Nuclear Subsidy Before One Is Even Approved

The New Jersey Board of Public Utilities is holding a public hearing for a rate hike for JCP&L customers on BPU Docket. No. EO18080899.  If approved by the BPU, a Jersey Central Power & Light residential customer who uses 500 kilowatt-hours each month will spend $2.13 more a month, up 3.2 percent, or $25.56 annually. The meeting will be held at the Freehold Township Municipal Building, One Municipal Plaza. Jeff Tittel, Director of the New Jersey Sierra Club released the following statement:

“JCP&L is coming after your wallets for a rate hike based on the nuclear subsidy. Consumers will get a rate hike even if they don’t get any power from those plants. What’s even worse is the initial $25 rate now will increase in the future for JCP&L customers. The BPU must protect our wallets and turn down JCP&L to rip off ratepayers once again.

“It is shameful that JCP&L believes the fix is in for the nuclear subsidy. Now they want a rate increase even before the application process has been settled. JCP&L are playing into PSEG’s scheme. PSEG are threatening to close their plants to get a nuclear subsidy they don’t even need. The application process is a sham and the BPU should not going forward with JCP&L’s request until the subsidy is approved. We should not be giving out a penny to applicants until an independent analysis is done.

“All these utility companies care about is making money. Every time a line goes down in NJ, companies such as JCP&L make more money fixing the line rather than redoing it underground where it would be safer. They get at least 14% return on emergency repairs and can charge overtime. They also get a 12% return on so-called resiliency projects. They won’t make this kind of money if the lines are underground which are only about an 8% profit.

“After Superstorm Sandy, JCP&L received close to $400 million to upgrade their lines against black-outs but evidently, this hasn’t worked. At one point, JCP&L wanted to spend $110 million on a massive transmission line they didn’t need; a project the court just struck down. Meanwhile, their customers tens of thousands have no power. When they say a project is for ‘Reliability’ it is because when they lie once, they re-lie again to convince us that it is needed. They’ve spent hundreds of millions of dollars on resiliency projects but every time the wind blows, JCP&L stands for ‘Jesus Christ, Pray for Lights.’

“New Jersey ratepayers will be paying for in and out of state nuclear plants with this nuclear law. This gives out of state nuclear plants like PSEG’s and Exelon’s Peach Bottom Plant and Exelon’s Three Mile Island and Limerick plant and possibly FirstEnergy’s plant an opportunity to qualify for zero emission credits.

“The BPU haven’t decided to give out a subsidy yet or even set a price. JCP&L are asking for money this year, but the subsidy may not even go into effect this year. This rate hike is a premature money grab and it should be rejected. New Jersey ratepayers will be paying $300 million a year for this nuclear subsidy so it is critical that the application process is not a sham. BPU need to make the application process transparent and require all applicants to open their books to the public and bring in an outside auditor to make sure that these nuclear facilities actually need the money. JCP&L’s rate increase is not needed, BPU should reject it just like they rejected their mega power line.”

Written comments on the ZEC program may be submitted electronically to Zec.Comments@bpu.nj.gov in PDF or Word format. All comments must be received on or before 5:00 p.m. on October 22, 2018.