Greenstein, DeAngelo Call on BPU to Address High Rates Paid by All-Electric Homeowners

GREENSTEIN/DeANGELO CALL ON BPU TO ADDRESS HIGH RATES PAID BY ALL-ELECTRIC HOMEOWNERS

Legislators Request Audit of JCP&L, Diagnostic Home Efficiency Testing, Zero-interest Loans, and Set Rates for Fixed Income Seniors

(14th Legislative District) - Assembly members Linda R. Greenstein and Wayne P. DeAngelo today sought the assistance of the state Board of Public Utilities to uncover the cause of exorbitantly high rates in all-electric homes in Monroe Township, Middlesex County.  Many homeowners typically pay between $600 and $900 per month in electric costs to Jersey Central Power & Light (JCP&L).

In a letter to state Board of Public Utilities President Jeanne Fox, the Assembly members asked the Board to undertake several items including: a fiscal and operational audit of JCP&L; complete diagnostic reviews of a sample of homes to determine the contributing causes of the high bills; dedication of clean energy program and federal economic stimulus funds to convert to clean energy systems; and establish "senior rates" for fixed income seniors living in all-electric homes.

Greenstein (D-Plainsboro) and DeAngelo (D-Hamilton) added the combination of these proposed solutions would "help to identify the cause of the high rates paid by these residents and move toward a solution to this on-going situation."

-- A copy of the letter to BPU President Fox is attached --

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August 6, 2009

President Jeanne Fox
Board of Public Utilities
Two Gateway Center
Newark, NJ 07102

Dear President Fox:

One of the most consistent problems that we hear from constituents in our district is the high energy bills paid by Monroe Township homeowners whose houses solely use electricity. These homeowners, most of whom are fixed-income senior citizens, typically pay between $600 and $900 per month in energy bills.  Each year, these energy costs represent a larger portion of their cost of living.

These residents have individually made several attempts to seek relief from Jersey Central Power & Light (JCP&L).  But, the situation has not been sufficiently resolved.   Their bills continue to increase while JCP&L continues to profit.  Our constituents who have been hit by unbearable energy costs during these difficult economic times enlisted our support.  As a result, we are proposing a multi-pronged approach to tackle this issue.

• A fiscal and operational audit of JCP&L to determine if senior citizens who reside in all-electric homes in my district are being unfairly targeted with high energy prices.   Our goal is to determine whether residents in Monroe Township are paying reasonable rates for their energy usage and not being asked to cover-up inefficiencies or malfeasance within JCP&L.
• Complete diagnostic review of a few (possibly six) homes in the area to review the efficiency of existing energy systems, structural deficiencies or other factors that may be contributing to the exorbitant costs paid by these Monroe Township homeowners.  If the Board does not employ personnel who could undertake these reviews, we request that the Board direct JCP&L to cover the cost of hiring professionals to do so.
• Dedication of Clean Energy program funds as well as federal stimulus dollars to provide zero-interest loans for renewable energy or alternative energy projects to lessen the burden to these constituents. Not only would this help drive down costs, but it would lower pollution from inefficient energy systems and reduce energy demand by these residents.
• Work to set "senior rates" for energy prices for fixed-income senior citizens who are paying a larger and larger portion of their income for energy.  These discounted rates would apply to all energy companies including JCP&L. If such rates could not be set by the Board of Public Utilities, we will sponsor a legislative measure that would achieve this goal.  Profits incurred by electric companies such as JCP&L could be used to cover the differential between traditional rates and the new "senior rates."

We believe that that the combination of these proposed solutions would help to identify the cause of the high rates paid by these residents and move toward a solution to this on-going situation.

We appreciate your assistance in addressing this problem.  Please reach out to us to discussing this matter further.

Sincerely,

Assemblywoman Linda Greenstein
14th Legislative District
Assemblyman Wayne DeAngelo
14th Legislative District