Shore Lawmaker Urging BPU to Uphold JCP&L Revenue Reduction

State Assemblyman Greg McGuckin (R-10) is urging the state Board of Public Utilities (BPU) to affirm an Administrative Law Judge's recommendation that JCP&L return more than $1 million in excess profits to ratepayers for charges imposed between 2008 and 2011 to cover the cost of maintaining its power grid. 

McGuckin refuted JCPL's argument that the utility spent millions following Hurricanes Irene and Sandy to upgrade and repair its system, and feels the utility should have to return even more money.

"The fact that they did not seek a rate increase for roughly ten years prior to Hurricane Irene in 2011 indicates they were making money hand over fist and they have received excess profits," said McGuckin, adding he's pleased with the judge's determination.

McGuckin pointed out JCP&L was seeking a $31 million increase, despite the more than $107 million profit.

"Between the $107 and the rejection of the increase, it's a huge difference for our ratepayers," McGuckin said.

The issue of what JCP&L had to fix after Sandy continues to be an opinion of great debate for McGuckin.

"Why did they need to fix so many things? Why was so much maintenance required? Is it because they hadn't done it for the preceding eight, nine, ten years? I think there's a fair indication that that's the case," he said.

Out-of-state utility companies that came to New Jersey to help after Sandy told residents they hadn't seen they type of equipment used by JCP&L in decades, according to McGuckin.

"I think a real questions arises as to whether or not they should recoup that type of cost if they had failed to maintain they system as it should have been in the year 2012," said McGuckin.

McGuckin pointed out for the BPU to consider a reduction in rates of more than $100 million is rare.

"This could be precedent-setting," he said. "I believe that this could lead in the future to additional hearings regarding whether or not our utilities are receiving excess profits," added McGuckin.