NJ Spotlight: State Board Questions JCP&L Earnings
Concerns also raised that utility isn't investing enough in infrastructure.
In today's NJ Spotlight, Tom Johnson explores: Is Jersey Central Power & Light earning too much and investing too little in its distribution system?
The state Board of Public Utilities (BPU) has decided to initiate a proceeding to look into allegations that the state's second-largest utility is earning significantly more than what the agency has established as a reasonable return on its investments.
The proceeding was initiated based on a petition filed by the Division of Rate Counsel, which argued that Jersey Central Power & Light (JCP&L) is earning a 12.37 percent rate of return, far in excess of the 8.5 percent approved by the state.
As a result, JCP&L over-earned $86 million to $90 million in 2010, according to Robert Henkes, an energy consultant retained by the agency, who examined the company's financial data.
The new proceeding comes at a time when JCP&L, which serves 1 million electric customers in north and central New Jersey, has come under repeated criticism from the Christie administration, local officials and customers for its slow response in restoring power after Hurricane Irene and a rare late October snowstorm.
Those outages left hundreds of thousands of their customers without power, some for as long as nine days.
Read the full story in NJ Spotlight. NJ Spotlight is an online news service providing insight and information on issues critical to New Jersey.
Noreen Brunini
4:50 pm on Friday, December 2, 2011
Has anyone else noticed how JCP&L does not replace streetlight bulbs? The streetlight in front of my house has been out for more than 1 year. It has been reported to JCP&L many many times. No new light bulb. Within a couple of blocks of my house, as I walk my dog, I note at least 6 street lights are out. (Yes they have been reported to JCP&L). Maybe they are saving alot of money by not replacing bulbs? Also, for months, JCP&L sent us an ESTIMATED bill which greatly overestimates my charges. We have aggressively made a point of reading our meter every month and self reporting to stop this blatant overbilling. I'm sure JCP&L does this with many resident's bills.
KLF
6:06 pm on Friday, December 2, 2011
This happened on our street too. We had a light out for about 8 years. Finally, it came to light that the reason they weren't replacing the bulb was because we didn't give them the pole number. It's not enough to give the street location. But of course they don't tell you that you have to give the pole number.
Noreen Brunini
6:54 am on Saturday, December 3, 2011
KLF Thanks for the tip, but I do know to report the pole number. They just aren't fixing it.