6 TRI-TOWN NEWS
NEWSPAPER MEDIA GROUP • www.centraljersey.com
August 19, 2020A
YOUR TURN
It is time to rethink public utilities in New Jersey
M
ore than 1.4 million homes and businesses experienced a power outage in the wake of tropical storm Isaias. In particular, more than 50% of Jersey Central Power & Light’s 1.1 million customers lost power. There have been public outcries after major storms due to widespread power outages. This happened after hurricane Irene
in 2011, superstorm Sandy in 2012, winter storms Quinn and Riley in 2018, and now tropical storm Isaias. Not surprisingly, there are already calls by elected officials for a “post-mortem” and/or legislative action. The past responses have been investigations, public hearings and the introduction of bills that have languished in our Legislature.
Also, not a surprise, JCP&L has borne for-profit utility companies have worked the brunt of criticisms from mayors and against public interest despite their manother elected officials. The problems with dates to operate otherwise. their antiquated systems, storm preparedAccording to a recent federal criminal ness, communications and response time complaint, FirstEnergy was implicated in a are well documented in the media and at $60 million bribery case that resulted in a public hearings. $1.3 billion bailout for two of their nuclear In the past, JCP&L was awarded extra plants. money by the New Jersey Board of PubOne definition of insanity is doing the lic Utilities (BPU) as part of its rate case same thing over and over again and expectto improve reliability. A rate case settled ing different results. in 2015 indicated JCP&L Given the history, it may have “over-earned” seems clear this business GUEST COLUMN model with its inherent between $500 million to $1 billion over a 10-year conflict of interest and the • period. high costs to our society, KIN GEE While the BPU ordered which includes social and a rate reduction on a goingeconomic costs from powforward basis, JCP&L got to keep the $500 er outages, cannot be the right model for an million to $1 billion, all at the expense of essential public service. ratepayers and the continued lack of mainPast responses and measures have not tenance or improvement to their distribu- shown to be effective. It is time for our tion system. New Jersey lawmakers to rethink this It appears that after making some initial critical issue. Clearly, a paradigm shift is repairs, the extra money awarded went to needed. dividends to its corporate parent, FirstEnA good first step is to consider revokergy Corporation in Ohio. ing JCP&L’s franchise. In California, some New Jersey and much of our nation op- towns and counties proposed a co-op to erate under a business model whereby an replace Pacific Gas and Electric, the utilessential public service (electrical power) ity company held to be responsible for the is provided by for-profit companies that 2018 wildfire that destroyed the town of were granted a franchise to operate as a Paradise, Calif. monopoly. In parts of New Jersey, electricity is This model has an inherent conflict provided by a co-op owned by either a of interest that benefits management and township or its customers. shareholders at the expense of captive customers who cannot switch their utility Kin Gee of Holmdel is the president of company. Consumers Helping Affect Regulation of History is replete with stories that Gas and Electric (CHARGE). Letters to the editor may be sent via email to news@thetritownnews.com. Letters should be limited to 250 words. All submissions may be edited for length, grammar, content and libelous statements.
Tri-Town News Mark Rosman
Managing Editor
Joe Eisele
Publisher
Perry Corsetti
Chief Operating Officer
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