JCP&L Rate Reduction Ordered – Just Not A Whole Lot

Allegations of excessive charges to customers by Jersey Central Power and Light reached resolution Wednesday when state regulators ordered a rate reduction. However, it wasn't the size that was originally sought.

The New Jersey Board of Public Utilities (NJBPU) scaled back the $115 million in the filing by the state Division of Rate Counsel to $35 million, an 18 percent cutback that would mean a difference of $1.68 on a bill of a typical consumer using 1,000 kilowatt hours a month.

In a NJBPU release, regulators said that the resizing took into account costs the company incurred in repairs following Hurricane Irene, Superstorm Sandy, and the October surprise snowstorm that all transpired between 2011 and 2012.

In the terms of the order, "JCP&L is now able to recover the $736 million that was spent to repair the JCP&L system following the devastating storms," company spokesman Ron Morano said. The costs will be borne by ratepayers.

The board took up the rate issue in 2012 on a petition filed by Rate Counsel. It was referred to an administrative law judge, during which NJBPU ruled on "prudency of costs associated with preparation, response and recovery to major storms in 2011," according to the release. It was incorporated into the base rate ruling.

By its own account, NJBPU's approval of Superstorm Sandy cost recovery has "an impact on rates, thereby limiting the impact of the rate reduction approved by the Board."