Regulating monopolies requires that in exchange for reasonable rates of return for the company, safe and reliable services must be provided to its customers. PSE&G seems to have forgotten this.
While PSE&G has a good service record, it could be better. Regardless, they should not be paid ‘up front’ for work not yet done, any more than it would make sense for a homeowner to pay a contractor up front for work. No one does that—unless they are keen to lose money and leverage over their contractor. How many stories have we read about contractors doing poor or incomplete work and refusing to give refunds? Countless stories.
PSE&G shouldn’t be allowed to force ratepayers to pay up front. The company has clear statutory obligation to fix infrastructure as needed, and then prove its necessity before getting a rate increase--not getting a rate increase BEFORE any work is done or proven to be necessary. This is what the BPU is doing. This process should continue, carefully.
The minority of mayors and Essex County Executive Joseph N. DiVincenzo and other politicians who have backed the $3.9 billion rate hike for PSE&G are blindly choosing door number one. They don’t know what it is, because they are not part of the BPU process.
AARP New Jersey Manager of Advocacy