BPU Rubberstamps Energy Rate Hike

Today the Board of Public Utilities unanimously approved a tariff filing for JCP&L, PSE&G, Atlantic City Electric (ACE), RECO, and Butler Electric customers on BPU Docket No. EO18080899. This means that these electric utility customers will be seeing higher energy bills. The BPU recently had three public hearings soliciting comments from stakeholders specifically focusing on the ZEC application, application process and the ranking of approved applications.

“In a shameful move, the BPU have approved a utility rate hike even before the nuclear subsidy has been approved. New Jersey customers will now get hit with a rate hike even if they don’t get any power from those plants. BPU have not even done an analysis to see if the tariff was warranted. Instead of protecting our wallets and New Jersey ratepayers, BPU rubberstamped a rate hike in favor of corporate interests,” said Jeff Tittel, Director of the New Jersey Sierra Club. “Just like the Queen of Hearts who sentenced first and held a trial later, BPU raised energy rates first before the nuclear subsidy application has been settled.”

With the recent filing approval, JCP&L residential customer who uses 500 kilowatt-hours each month will spend $2.13 more a month, up 3.2 percent, or $25.56 annually. PSE&G projects a typical residential customer (using 7,200 kilowatts on an annual basis) will pay $30.72 more per year, or a 2.49 percent increase. Large manufacturers and other companies using a lot of electricity will see their bills rise by 4.46 percent, according to PSE&G’s tariff.

“BPU’s approval for a rate hike solidifies that the fix is in for the nuclear subsidy. Utility companies like wanted a rate increase even before the application process has been settled and now BPU let them have it. Residential customers and businesses will see a rate increase between $30 and $40 per year now that will only increase in the future,” said Tittel. “The BPU haven’t decided to give out a subsidy yet or even set a price. We should not be giving out a penny to applicants until an independent analysis is done.”

The BPU have not settled the nuclear subsidy application process. The Nuclear Subsidy law will give PSEG a massive subsidy for their nuclear plants, $300 million worth.  The law requires consumers to buy 40% of electricity from nuclear power plants. There is no sunset provision, so this can go on indefinitely.

“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. Instead of making the application transparent or fair for ratepayers, the BPU or Board of Promoting Utilities approved a premature money grab from corporate utility companies. They are picking our pockets before the dirty deed is even done,” said Jeff Tittel, Director of the New Jersey Sierra Club.