The state Board of Public Utilities has voted to accept and make available on its website a report from the Brattle Group on energy affordability for low- and moderate-income customers during New Jersey’s clean energy transition, a report that focuses on assistance programs and rate options.
According to BPU staff at the agency’s March 19 meeting, the goal is to limit electricity costs to 2% of income for individuals who qualify for assistance programs.
The report states: “New Jersey is aiming to decarbonize its economy and achieve 100% clean electricity by 2035. As the state’s energy economy undergoes a major transition, it will be essential to ensure that low- and moderate-income (LMI) customers are not left behind and can equally benefit from this shift.”
The report also suggests increases in the populations served through the Universal Service Fund for low- and moderate-income households. One way of driving revenue for that program would be a “more progressive option” involving a move of the Universal Service Fund to the state tax base, meaning taxpayers would contribute funds toward the fund in proportion to their income and associated tax obligations.
Senate Republicans in Trenton wasted no time registering their opposition to the report and its key recommendations. They argued that the recommendations would hike costs for middle-class individuals while reducing them for families that already qualify for state assistance programs. The Republicans charge that Democrats in Trenton are trying to deflect attention away from an energy affordability crisis they created.
In an environment in which both Democrats and Republicans are calling for market reforms in the pricing of electricity, the issue is becoming a hot-button topic in the Assembly races. All 80 seats in the Assembly are on the ballot in November.
In another move related to pricing, the BPU again postponed a decision on Atlantic City Electric’s request for an 8% increase in the distribution rate portion of a customer’s electricity bill. If granted the 8% would represent an additional price hike on top of the 17% increase already approved for the supply rate portion of bills.
ACE made its request for the 8% increase in February, describing it as a means of recovering capital expenditures used in modernization of the local grid. Among the projects for which ACE is seeking to recover costs is the widespread installation of smart meters.
In February the BPU said it would defer the issue of the rate increase to April. Now it is pushing any consideration of the request to Aug. 21.
Contact the reporter, Vince Conti, at vconti@cmcherald.com.
