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UPDATED: JCP&L Rate Hike Should Be Denied, Senator Urges BPU

State Sen. Kevin O'Toole calls utility's request 'insulting' at Trenton hearing Wednesday.

 

State Sen. Kevin O’Toole (R-40th District) told Jersey Central Power & Light officials Wednesday morning their request for a $31.5-million rate hike following Hurricane Sandy was “insulting.”

O’Toole, speaking at a state Board of Public Utilities hearing in Trenton to discuss the rate hike, told Patch during a short recess he was given the opportunity to directly address JCP&L President Donald Lynch about the utilities response to the storm and “what went right and what went wrong.”

“I told him it (the proposed rate increase) was insulting,” said O'Toole. “We critiqued as to why it was necessary and I said that perhaps it would be wise to keep money for the repairs from New Jersey in New Jersey” and not place the money in the company’s general coffers.

JCP&L apologized for some of the things that went wrong during the storm, said O'Toole.

Other utilities, including PSE&G, Cablevision and the Passaic Valley Sewage Authority, were also in attendance at the hearing.

According to a Star-Ledger report, the proposed rate hike would mean the average residential customer would see their monthly bill rise by 1.4 percent, or $1.51 increase each month for a customer using 650 kilowatt hours of electricity.

The Board of Public Utilities is a state agency authorized to oversee regulated utilities, which provide critical services such as natural gas, electricity, water, telecommunications and cable television.

O'Toole recently penned a letter to BPU President Robert Hanna asking him to immediately deny the request to raise rates to pay for infrastructure improvements.

“For JCP&L to apply for a rate increase after the poor performance they showed in the aftermaths of Hurricane Irene, the October 2011 snowstorm and now Hurricane Sandy, there are absolutely no grounds on which this request should have any merit,” O'Toole said in his letter.

O'Toole said he could not speculate when BPU may make a decision on the proposed rate hike.

He said the electric company does not deserve the rate increases because of misinformation from the company, lack of communication and lack of coordination as JCP&L attempted to restore power to its customers during recent outages caused by storms.

“The state’s second-largest utility has no shame,” O’Toole said in a written statement. “Its parent company has raked in a $149 million increase in net income over last year, as the utility failed to adequately serve ratepayers in the aftermaths of Hurricane Irene and Sandy.”

“Their application to suck more out of our residents’ pockets is utterly offensive,” he added.

O'Toole recently attended a meeting with the mayors and township officials in District 40. He presented the issues and concerns discussed in the meeting directly to the presidents of the utility companies, which were well received, he said.

O'Toole, who represents a district that encompasses towns in Bergen, Morris, Passaic and Essex recently sponsored the Storm Response Act of 2012, which seeks to hold utility companies accountable for their response times during emergencies.

Read the letter in its entirety in the photo section of this article.

  • Do you feel JCP&L is justified in asking for a $31.5 million rate increase following Hurricane Sandy?

    (Voting has been closed for this question)
    • Yes
        8 (10%)
    • No
        69 (89%)
    • Other (Tell us in comments)
        0 (0%)
    Total votes: 77
  • Your vote will only count once. This is not a scientific poll. View Results Vote!
Related Topics: JCP&L, New Jersey Board of Public Utilities, and Senator Kevin O'Toole

ryancnj

2:34 pm on Wednesday, December 5, 2012

If the rate hike will go towards improvement of the infrastructure then I say go for it.

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Steve

3:43 pm on Wednesday, December 5, 2012

Doesn't part of what we pay every month already go towards infrastructure? I say no thank you to my bill going up a penny!

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Walter O.

11:26 am on Friday, December 7, 2012

Hell no! All they want is more $$$ in their pockets! Utility companies should not be in business for profit. I don't believe anything utility companies say. Bravo Senator!

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Bruce

11:38 am on Friday, December 7, 2012

To Walter O. --- REALLY? They shouldn't be in business for profit? Please get serious! Hey, I'm no fan of the utilities for many reasons, but to expect them to be not-for-profit is just silly!

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Walter O.

12:05 pm on Friday, December 7, 2012

Yes, really! Anytime you have a regulated industry that essentially creates a monopoly in a given territory, for profit is beholden to its shareholders alone. Not the people they serve. Keep it the way it is, but open it up to competition ie: gas stations. Or electric stations in this case. Allow the community to pick who creates and supplies gas and electricity! That levels the playing field. I own stock in Power Companies, they pay some of the best dividends. Trust me...they're stealing money! Make it more competitive or non-profit.

Joe

4:36 pm on Wednesday, December 5, 2012

Of course they never used the money over the years to upgrade. Why should they when all they have to do is ask for a hike to upgrade. I had no power for 13 days. A company from Illinois made the repairs.

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David Steketee

9:49 am on Thursday, December 6, 2012

Why would you expect the local power company to have on hand sufficient resources to handle a situation like that? It would be a complete waste of money 99% of the time. Can you honestly say you'd be willing to pay considerably more to have idle labor and hardware available just in case a hurricane made landfall?

d-dubbs

5:11 pm on Wednesday, December 5, 2012

The money we pay now goes into their pockets while they sit in their trucks and talk, drink coffee, and eat their donuts! Just like my towns Sanitation dept when they are supposed to be plowing the roads.

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Mike

7:43 pm on Wednesday, December 5, 2012

Tell the garbage/snowplower man to pick up the bottles and cans that they can't seem to get in that big opening in the back of the truck.

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gina s.

8:53 pm on Wednesday, December 5, 2012

That comment is very insulting. My husband works or a nearby public works and while you are sleeping or god forbid one of those idiots who insists on getting to Starbucks during a blizzard, he is working for days straight, sometimes in horrible conditions and away fom our home which never gets plowed or shoveled. It would be horrible if he should be allowed to get a cup of coffee in between his 24 hour shift. Next time your street is clear of snow think about the guy driving the plow who has a family at home worried about him being gone for days.

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Tammy

11:08 pm on Wednesday, December 5, 2012

Hi Gina-You are going to have to grow a thicker skin. My first husband worked for a DPW and so does my second husband (guess I have a "type" LOL). My brother also worked for a DPW for a while too. I have been hearing these comments for years. You just have to learn to ignore the ignorance. We know better than these fools who think the DPW crews are supposed to work through a storm without a meal or a cup of coffee. I have a friend who no matter how many times I tell her asks me after a storm if my husband is home. No, he's not home. After they are done clearing the storm they still have to work their 8 hour shift. Then of course you have the jackasses who cry that their road isn't plowed yet. If they had any common sense they'd realize that unless they have a plow truck for every road somebody's road is first and somebody's road has to be last. It's also not up to the plow truck drivers to decide when they start salting/plowing. It's the DPW supervisor and quite often they don't give the clear to go until the police call them and let them know the roads are getting bad. Just take some deep breaths and thank your lucky stars you have a hard working man. :)

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Michael Brancato

9:49 am on Thursday, December 6, 2012

Tammy, you're right, and you do need a thick skin sometimes. Lately, though, it seems as if people just want to bash every public service worker they can. They have no idea what kind of hours these people put in, what kind of work they do, or appreciation for the fact that most of those jobs are jobs that they would rather not do themselves. There is a sense of entitlement to these posts that is disgraceful, rude, and downright disrespectful. Sometimes you need to calmly and rationally stand up to these people and remind them that public service workers are people too and they're entitled to the same rights and respect they would want for themselves.

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Edward P. Campbell

9:49 am on Thursday, December 6, 2012

It is the VOLUNTEER Firefighters, and EMS personnel, who get screwed. Outside of major incidents like a Hurricane, both PSE&G, and JCP&L depend on those volunteers to provide first-in safety services for such things as downed power lines, exploding transformers, and gas line leaks. These VOLUNTEERS, get up in the middle of the night, leave their family’s dinner, birthday parties, whatever and end up babysitting the power company’s problems, until a crew shows up. I can’t talk for all volunteers, but this one is sick and tired of sitting there for 2 or 3 hours waiting for a repair crew to show up. Worse, 9 times out of 10, when that crew does show up, you can bet they have sandwiches, and hot coffee with them, because while we sit there waiting and unpaid, they stop at the local Quick Check and get their comfort food, while making $45.00 an hour if not more.

I say volunteer emergency services should give the power companies 30 minutes to respond, if they aren't there by then we charge $500.00 an hour to baby sit their problem thereafter. That way I don’t have to spend my Saturdays standing in traffic with a bucket begging for donation, so I can go baby sit the power companies’ problems!

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CSS

3:34 pm on Thursday, December 6, 2012

@Edward P. Campbell:

Thanks for that information, I had no idea that the volunteer fire services had to babysit this stuff. Thanks, but really, someone should be compensating you guys or making a donation to the fire station. I assume that police are also sometimes in charge of babysitting for JCP&L as well, which means we all probably pay for some overtime pay there.

Another poster said JCP&L is in "harvest mode"... That term seems quite fitting - First Energy bought the company and is just milking it for what they can while they can. I wonder why the BPU approved the sale in the first place? What was promised to the state of NJ when FirstEnergy came looking to buy?

Elaine Mason

5:50 pm on Wednesday, December 5, 2012

Lanie
Maybe if they upgraded somethings we would not have bee 14 days without power!

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Joseph Keyes

7:43 pm on Wednesday, December 5, 2012

There you go...."free market solutions" in action. I wonder what First Energy's CEO earned in 2012 and what the year end bonus will be.

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John M.

1:21 pm on Thursday, December 6, 2012

Bingo! $31 million rate increase is a drop in the bucket for JCP&L and their parent, First Energy. Let's see senior management of both companies get reduced compensation this year in view of their performance.

Captain Jack

7:43 pm on Wednesday, December 5, 2012

Where is our representative Rodney? Does he do anything other than sitting on his butt?

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lisa honecker

7:43 pm on Wednesday, December 5, 2012

write a letter of complaint to: Board of Public Utilities, 44 S. Clinton Avenue, 7th Floor, P.O. Box, Trenton, NJ 08625; or file a complaint on web site
www.bpu.state.nj.us or Call the main number 609-777-3300 or request a complaint form and fax it or fax a letter to: 609-777-3330 Lisa Honecker, Mayor Honecker's wife, Bernardsville, NJ

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Bruce

9:49 am on Thursday, December 6, 2012

I'm thinking those who voted "Yes" to the requested rate hike in the poll above
are employees of JCP&L!

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Al Salzano

9:49 am on Thursday, December 6, 2012

JCPL is in harvest mode by 1St Energy for all the profits they can take in. It is not the crews that are at fault but the senior management. NJ Legislatture should pass a law putting the management team of any utility that fails to serve its clients in a holding cell without heat, or electricity , cold food, no showers until power is restored. Mayor Koch used to do this to the slum lords in NYC and it worked. Time to subject the JCPL execs to the same scenario that the citizens of NJ have had to endure 3 times in less than a year.

Thanks to Lisa H for the fax number of the BPU.

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Edward P. Campbell

9:49 am on Thursday, December 6, 2012

First Energy Top Executives Salaries YE 2011:

Mr. Anthony J. Alexander , Chief Exec. Officer, Pres and Exec. Director...$4.28M

Mr. Mark Tanner Clark ,Chief Financial Officer and Exec. VP...$1.71M

Mrs. Leila L. Vespoli Esq.,Exec. VP and Gen. Counsel...1.31M

Mr. Charles E. Jones Jr., 56, Principal Exec.... $1.1M

http://finance.yahoo.com/q/pr?s=FE+Profile

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Joseph Keyes

3:34 pm on Thursday, December 6, 2012

Thanks....good to know and puts a perspective on the $$$ in play.

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CSS

3:34 pm on Thursday, December 6, 2012

Don't forget the bonuses for a job well done:

http://www.forbes.com/lists/2012/12/ceo-compensation-12_Anthony-J-Alexander_6VLL.html

Nice overview of all the people sucking down the cash rather than building a business here:

http://investing.businessweek.com/research/stocks/people/people.asp?ticker=FE

Nice that they cut 400 jobs too:

http://www.cleveland.com/business/index.ssf/2012/11/firstenergy_third_quarter_earn.html

Maybe if they got a higher-priced CEO he could figure out a way to not cut jobs. :)

$43M total compensation in the last 5 years.

Dan Grant

9:49 am on Thursday, December 6, 2012

When First Energy took over JCP&L the first thing they did was cut the work force and cut infrastructure improvements for NJ. That is the essence of the "Free Market " for essential services. It is a disgrace but the BPU lost control of how they operate. This isn't about Congress. It is about our legislators and I haven't heard a word from our own Senator Pennachio or our Assembly people.

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BeachBum

9:49 am on Thursday, December 6, 2012

Many Morris County officials have voiced their displeasure with Jersey Central Power & Light following Hurricane Sandy, municipalities are exploring whether it's possible to switch utility providers.

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clyde donovan

2:50 pm on Thursday, December 6, 2012

Force JCP&L to do what they're supposed to do. Get the BPU out of the hip pocket of the utilities. Elect new legislators and if they shaft you, vote them out.

Christine Genarrio

9:49 am on Thursday, December 6, 2012

The reason why it took JCP&L so long to restore power is because our state was the last on their list of priorities. They took care of Ohio, Virginia, West Virginia, and the other states they serve first, and as they finished the other states they began to trickle down to NY first and then NJ. Here's an idea...Why doesn't JCP&L raise the other states that get red carpet service from them and while they are at it they can kick in our half too. I would be all for paying an increase if it went into the pockets of the men and women from all over the US and Canada that came to help us while JCP&L dragged their feet.

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Edward P. Campbell

10:08 am on Thursday, December 6, 2012

Another reason it took so long is the MBAs, and other business executives who run a business based on nothing but dollars and cents have slashed maintenance and rank and file workers like there is no tomorrow. GM and Chrysler ran their car companies like that also, and they needed government bail outs to survive. Ford Motor Company run its business with an eye towards the mightily dollar and cents too, but first as a car company and that is the very reason why they didn’t need bailed out and continue to be a successful car company! If you want a better power company, put the people who know how to run a power company in charge and tell the MBAs and other business executives to take a back seat in the accounting department where they belong!

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TCG

10:45 am on Thursday, December 6, 2012

Wake up folks. The power companies are excuse factories. They have no incentive to perform better because there is no threat that they might lose their contracts. The BPU? Seriously? Who appoints that board and who are the people on the board and what is their agenda? Can they be removed? Replaced? By whom? Certainly not be citizens of the towns who waited for weeks to have power restored. Where is the accountability? It's nice that everyone yells and screams, but in the end, nothing changes. One year to the day after a horrific response to a Halloween snow storm, the very same utilities with the very same contracts reacted the very same way to the hurricane. If you think any of this is going to change, or that anything will be done to prevent rate hikes, then you are exactly the kind of sucker the BPU and the power companies laugh at when they read these pathetic posts. Mark my word - rates will go up, service will continue to be lousy and politicians will do nothing about it.

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Hugs

10:47 am on Thursday, December 6, 2012

Where were all the politicians in September/October (BEFORE the storm)?! Typical politicians...they are reactive rather than proactive. Monday morning QB comes to mind and a very easy and "safe" position to be in. Hardly any had a plan, knew what to communicate and were caught off guard like almost everyone. Sick and tired of these political people bashing the utilities after the fact. A true leader would have done something years and decades ago to avoid some of the problems we all experienced. Where have they been?!

I will say it again, we were told to prepare for 7-10 days without power. Mine was out for a loooong time, but I am not bitching and I prepared and dealt with it. This was a huge storm with a chunk of the NE without power (see satellite map of NE in the dark). That should help you comprehend the magnitude.

I'm a volunteer too and also tired of babysitting down wires or responding to a bang from a transformer.

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Nonnie

12:31 pm on Thursday, December 6, 2012

First of all I want to say a big THANK YOU to all the volunteers who spend countless hours away from families/friends to help others. Without you we would be in dire straights. From what I could see after Sandy it was those same volunteers, churches and ordinary people who were the first to pitch in and help their fellow citizens in need. The government (FEMA) and the Red Cross (where does all the money go?) were virtually AWOL for a long time. Aren't those same organizations supposed to be mobilized immediately or even BEFORE devastation hits? If we are supposed to be "prepared" why not them? It took days for the National Guard to me deployed and then only to the shore. Why wasn't the Forest Service used to remove downed trees immediately? A huge tree blocked off Pleasant Hill Rd for a full 10 days. I find it hard to believe no one in the DPW, Police, etc could have removed it before then. I totally agree with Ed Campbell's idea of requring utility companies to pay a penalty for making the volunteers babysit. Unfortunately you can't regulate human nature and those same utility workers will still stop for refreshments as they are "on the clock" when they are stopping at Quick Check on their way to work. In the end the added cost will always be shifted to the rate payer.

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clyde donovan

2:50 pm on Thursday, December 6, 2012

I think the attitude of most corporations is: Screw the customer as long has we can produce bigger returns for our stockholders. The reason this is allowed to happen is because corporations buy your legislators and administrators at every level of government.

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FourScore

3:34 pm on Thursday, December 6, 2012

The real reason is that electric and gas companies treat their customers like s**t is because they have a monopoly on the area, so you have no choice but to use them. If you heat your house by oil, it’s a whole other story. Since you can choose which company supplies your heating source, they have to provide you with quality service, otherwise you’ll go elsewhere.

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Edward P. Campbell

3:37 pm on Thursday, December 6, 2012

If you think Sandy was bad hang on to your hat, because our government has allowed our weather satellite system to fall apart to the point we might not even know another Sandy is coming till it hits us! I Kid You NOT:

http://www.nytimes.com/2012/10/27/us/dying-satellites-could-lead-to-shaky-weather-forecasts.html?_r=0

And we are actually willing to trust these idiots with our Health Care. ARE YOU KIDDING ME???

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Nonnie

12:05 pm on Friday, December 7, 2012

The government takeover of the healthcare system is a huge mistake. Does anyone actually believe there will not be waste, fruad and abuse in any government run system? The better alternative would have been to curb the current waste, fraud and abuse like they have been promising for years yet it never happens

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Joseph Torres

10:35 am on Wednesday, January 2, 2013

A rate hike , they need to be specific as to what its for, what capital improvments are going to be made where and when, thats what i would ask.

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