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It is time to rethink public utilities in New Jersey

More 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” between $500 million to GUEST COLUMN seems clear this business model with its inherent $1 billion over a 10-year • conflict of interest and the period. While the BPU ordered KIN GEE high costs to our society, 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 distribushown 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 optowns 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).

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Tri-Town News

Mark Rosman Managing Editor

Joe Eisele Publisher

Perry Corsetti Chief Operating Officer

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