ML20062H776

Transcript of 800820 Hearing Before Nj Dept of Energy,Board of Public Utils in Newark,Nj.Pp. 1-176

ML20062H776
Person / Time
Site:	Three Mile Island
Issue date:	08/20/1980
From:	NEW JERSEY, STATE OF
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JOA3D OF ?UBLIC UTILI? E3 I 2l 3'

MIWA3X, IKEW JE.C27 WEDGESDAY, AUGUST 23, 1930 4

In the Mattar of the Petition of  :

5 Jarsay Central Power .nd Li:jt:t i OAL CCCL*;7 20.

Company for Approval of an in- t PUC-3513 a0 6 crease la nataa for ELsetric Service and for Amendment to the 1 SPU CC W NO. '

7 Levelized Energy Adjust:nne t 404-232 Clauas and Factor for Such a 307-433 Servicit -

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8 9l l DEFOM s ST22H33 C. MA2.SHALL, ESQ.,

10 l ALMINISTRATIV3 L?# JUDG3 i

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11 12 y A2:PB AAAN C3Ss 13 1 l l For t:2s Petitioner, Jersey Central Power i and Light Co=pany, appears:

14 j KIRSTEM, FDIEDMAM & CHURIN, 33GS.,

15 : 3rr JAC% b. KI3STAN, ESQ., and i

DOLOES DELADAR, 230.

16 17 Academy Street Newark, New Jersey 17 -sad-WILLIAM F. SYLAND, ESQ., Of Counsel 18 I JANT.3 S. LI2E2? SAM, 35Q., Cf Coensel 19 Tor taa Offico of tha Public Advocate, Division

of Rate Counsel, appear ALFRED L. NARDELLI, ESQ.,

21 Deputy Dirschor, RAYMCSD MAXUL, ESQ.,

22 Deputy Public Advocate i 10 Comserco Court 23 Newark, New Jersey l

I i t

24 ' J. H. 20 ERR 3R & A5SCCIATEG 24 Cnn earce Street

'5 Newark, New Jersey (201) 623-1374 l

80090sooS$

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.$. P? a *: A !! O .: Os (Ocatinuad)

, ?c: ::ha 3taf f c:' 20 2:2 o.f 7'2blic ';till?.ica,

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appearna i

3 CA11LA VIVIA:1 13CLLO, :SQ.,

Oojutr Attorney Scntral

. *'.W L 3.*.;"J!:1 5

Supervising nata Analyst 6

! Tor tue cea Jersey Departsaut of EnerrTle

! . 3;g o2rs t 7

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! 3Ts MICHOLA3 FILOCCO, 330.,

9i 32 Jourani Sc*uara

• l Jarsey City, !!aw Jarney i

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• For tha Board of Choses Froeholdars of Ccoan

! Count */, appear:2:

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IC'!'C p C*.7, t C?,I* L, ?!! CAL, ~;ACL'T &

g PRI*/3732A, % SOS.,

3 g, 37: JCIIli C . C.'.*1.TL'T.CE , !00.,

j j 34 Washington street i

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Tons 2ivor,17tv Jer*u.y a i e

I To: Thttchir Cls:ss 'enuf.acturiwJ Co.,

15 i et da, appearas 16 LINDA 3URY, XC CO!U(IC% & 537A2RCCK, ISCS.,

i 07: WIL*I M n. *!A7,II*fG, 230.,

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184 min Street Westfield, ficv Jerse's

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1l JUCCE !A:133ALL: Goos. m :ning partie.s, l

2 The Offies of .V.ninistrstive Lw and the soned 3

of Fuhlic Utilities have set this tina and t.Ms 4

place for a hearing in the . matter of the consoli-5 dated petitions of Jersey Central Pcw.ar & Light 6

Ccupany, OAI. Decket Stu=her PUC-3513-90 and agascy 7

dochot n M ars 304-233 and 507-433.

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• • o Offics has appoistad me, Stephen Marshall, to prusids as Adninistrative Law Judge.

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May I have the appearsnees of the parties.

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gj M3. KIRSTEN: Jack 3. Kirsten and Colores t

i Oclabar for the fir:a of Kirsten, Friedman and Charin, 2

Attorneys f r the Pstitioner, Jersey Cantral Power 3l 4

and Light Companys James 3. Liberr.an and William F.

Hyland of Ccunsel.

5, M. m CELLI: Alfred R. Nardelli and Ray:nond 6l ,

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P.akul, Deputy Public Advocates, for the Public Advo-7j 8 cate.

9l MS. 3"f_4Da Carla Vivian Bello, Deputy Attoraay I

i General, for the Board of Public Otilities.

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i !G. FILOCCOs Nicholas I. Filocco, of the I gl!

firm f Waters, McPherson, audain & McNeill for the 12 l l "** Jersey xpartment of znergy.

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i i NR. SAHRADNIIs John C. Sahradnik for the firn 14 i

i I of Berry, Sunnerill, Piscal, Kagan and Privetera on l-la. i l h.hatt of the ocean C=unty neard of chosen rrse-l 1, ;

I holders.

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18 firm of Lindabury, McCormick and Estabrook, and we g

seek to intervene on behalf of an industrial group this morning.

JUDGE MARSHALLS Chay. I will let the record 22 note now that I have received a written motion to -

23 intervene yesterday and it.looks from the servica l list that copies were sent to all parties. I would 25 i i

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32, S 1l lixa to issue a written ruling on that. So, in acco.w.

f dance with the Mcw Jersey Administrativa Code I will 2l 3i ask the partias, any party uno wishes to cos:nont on 4 I the : notion, to ao file a written coannent with copias 5 to the Movant within the following nine days.

I 6 32. HA2D3LLI: May I ask Mr. wathins a question i

7i for clarification?

8 JUDGE MAR 3&EL: Curtainly.

9l gg. 11A2D2:'J,I: I was under the 1:apression that l

I 10 ! he was mving to intervene in the base rate case.

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As I correct in 6 t?

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i l .x2. WhTKINS: Tha9 s correct, Mr. tiards111.

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$ 13 our explicit purpose van to intervena in the base

. j rate casa and :nore specii.ically with respect to rate

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5 15 design matters within tn. t case and it is our under-standng cat den is s:.e other industrial inter-16 I 1

venor in this proceeding, uowever, in ecsaunicating 17 l i with that intervenor, we find there is not a common-IS 19 ality of interest between Air Products and the group 20 of cus*rwaars who I seek to intervene on their behalf.

They are in the ganaral service pristary tariff clas-21 sification. They have different load characteristics

• " "" ' "*" "'" "E**I 23 different a. h than Air Products.

24 l I understand than you do not M2. HARDELLIs 25 ;

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g intand to tako any position on this LIAC petition.

o! MR. NATKIllS That la correct. I as hers be-1 cause I undarstcod this to be tha first day of the 3

proceedings with respect to the : main case and that 4

they w uld atsrt out than with the LZ24 mattars.

5 6! MR. nAEELLI: Would you be able to very

.! quickly read into the record your clients that you e i, 6

i are representing?

9 I assume it would ha just a abort list.

I M2. MATXINS: At this point there is only 10 i 11 one, I as authorized on!y to disclosa one which is s  !

Thatcher class Manufacturing. I say the only one at i i 3

j this ti=a because they c:re the concern that con-

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i i tacted na and they indic: tad they are now in the

14 process of form 1=q a grcu?, that thero are several 15 i industrial concerns who aprossed an intarast in 16 joining the group and in checking with the time tabis l_e l

l i - and in calling Judge Marshall I understccd today to 18 l l be the first day of hearings and that if I was to 19 f 4

I make a ssotion to intervene that I ought to do so be-20 l l fare this date.

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! My intentien was, as I have done with other 22 industrial groups in other cases, is to advise the 23 parties, the Board and the Office of Ad:ninistrativa 24 Law at a later date, the names of each and avory 25 i i

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=i 1! company that ccr.poJos t.%: intarventien frcup ence 1  !

2i those conce n:2 ?. ave ::cen finally dotar=ined.

J::DCC cc.2;tAL* .i,r st thcen nf othar quantions 3l 4

c.ao partian wi.311 to P.sha up regarding the Itovant 5 ACW7 6 IG. ZI?.r.'.0 : 'f a :. I wuld - I don' t know 7j if yoa cocid sca.s thia att an 3bjection or not, but 8  : thlak .u an ebserv.tien that I have nome reserva-9l tion .thout organizations or associations, pocple, I

i ap1.uring as intervanors.

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M2. E!aSTE:n (Continuing) T recognize that o<

. hatcher Class has a custe:ner of ours, if they were 3

intervening as such, that the company would pose 4 no objection.

5f i If, ca the other hand, this is an argument 6l that is in effect soliciting customers of ours to l

i d I represent, I have sone objection with that.

8l And, I would have the same objection if it 9l were a group of residential custor.ers. I know 10 there has been no firm policy as to the status of 1

• 11 , such groups, but I sould just like to say that I I no 12 have/ Ejection to the application to intervene on N

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! behalf of Thatcher Glass, but Iwould have an objec-i 14 l tien to intervention by a group of parsons or 15 l organizations who may or may not be castorers of I  !

I 16 Jersey Central.

I 17 201. UATRIM5s May I respond to that, Judge 18 Hershali?

l 19 l JLDGE ltAR$11 ALLS Certainly.

I 20 ' MR. WATKEIS: I think, Mr. Kirsten, that i

21 every : net.ber of this group will be a customer of Jersey Central Pcwor & Light and wiii be a large 22 l 23 industrial customer who have collectively come i

24 l togstner as an Ad Zioc group to intervene in this l

25 l proceeding.

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1l If each and svery one of the::t atte:spted to do

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so on their cwn, I'm sura you would argue en the 3l i other hand that they ought to have been consolidated 4li and that they ought to act as a group and ought to 5

have one expert witness for them and ought to have 6 ,

one atterney to cross examine on their behalf. '

Well, we have done this consolidation in 8

! advanca. We have found a group of customers who 9l ! have like interests and we have consolidated these I

customers for the purpossa of this proceeding, much i

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i. as t=e Pamlic Myocate 7:aprssents a whole host of 1

i l residantial custosars. Se doesn' t represent ons 3 i 13 I I residential custc;:er, .o represents a group of a l 14 j residential customers.

15 ' And, I'm purporth ; here to represent a group 16 of industrial custoners.

II H2. K!a3T Dit 'rou misunderstand. I'm not .

18 objecting to representing one or norm intervonor 19 or your intervestion hers on behalf of one er more

'O customers of Jersey Can*Ja1.

i 21 w3 g y em really doing is raising the question, 22 yem really not posing this as an objection because 23 gem not surs what your group involres, but I just 24 have reservations about groups without knowing vbo

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they are.

j I _ _ _ _ _ _____ _ _ _ _ ___ __ _ _ __ ____.__ _ _ - - . - - - _ -

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1 I thin.t tne fact that they call taessolves an 9

'l association dcasa ' t give then any status to appear l

i 3 ,, , p,7gy, ;ges the people who :t.ake up the group 4 wne would have the status to appear hers as a party.

5 As you say, Thatcher Glass is one party that 6l as an intorest in this proceeding, and I have no 7! objection to their intarvening. aut, I would have 8

objections to unknown ::essners of a group who my 9 or may not be customers of Jersey Central.

10 Aa f ar as Mr. Nardelli's position is concerned, i

11 I would also like to point out that I don't think Mr.

f I2 Mardelli's statutory obligation is to represent 13 l rasidential custossars.

a I4 Me is to reprueent t:2e public including j  !-  :

t l l 15 ' Thatcher Glass and whoever elsa makas up the public.

16 i And so that the questica as to whether or not he l l l

t 17 adequately represents you cr not, although I'm not 18 raising it, is not intended to be e2clusively 19 involved with residential customers.

20 tta, aAaD3LLI: ;tay I coment briefly, Judge 21 24arsha117 22 JUDC3 MAEILiLLs Certainly.

23 :4R. 2ARDELLI I was about to say what Mr.

24 i Kirsten just said at the very end, that I don't 25 ' tttisk it's accurate of Mr. Watkins to say that the i

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! 11 l 1l Public At.vocate representa residential custcoars.

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2' i dure, in a general a t.starant, I gress you 3

f could say that re have of ten perceived the broad

• i interest, tne broad public intsrest to require us 5

to look out for the interest of rwaldantial custo-6 mers.

7 dut, for exanple, in the last PUblic 3ervice 8!

case, we =sprosented the city of Newark or at least 9:

l assisted them advocating their point of view.

10 l We, in many cases, represent the interesta of l

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} aea11 coensreial custo=ers. The atatuta dosa require

. 12 i us to take a broad view of the public interost, and

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would hesitate to ssy that we are narrowly con-

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14 fluing ourselves to reprasent residential'eushars.

15 i I do have one concern about Mr. Matkins'

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16 position. Aa you well know, you have airsady denied 17 a cotion to intervene in this case by the Public 18 Intsrest assaarch Group. And, I think I could --

19 they are not here to speak for themselves, but I 90

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think I could fairly characterize that group as l

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! sort of the residential counterpart to :dr. Watkins.

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They, for the most part, speak for the interests of

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i residential customers. And, you have denisd that

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motica.

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? . P *.2 n .LI: (ccntinuing) I, for ene, think i; i

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yi it would her inconsister.t for you to grant this :mtion.

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t In my personal viev, I haston to add, I think you 4l should ' ave gr at.ad hath r.oticas. I dieagree with 5

yocr posir.icn on the r.otion of PC2C ar.d I think really trouble to get hare 6! an'lons who takes the ti=s and

-l ahould be allotted to intervens. Dut gi-ren your denial i

for P P.G's notion to int.orveno, I thinh you are re-3l 9,

Mired amt to deny Mr. Matkins' notion. ,

M. .1 2 : .Ma you pu.P r g to represent 10

the Isrgo industrial cuza.cear in this caso, Mr. +

7) 2 l gg l MardallL7 8

MR. MA232LLIs 1411, Mr. Watkins, I don't see

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=y statu.ory obligntion as haring to sanounce bafore

every casa whether we are going to reprosont ona la_ i

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taXe a broad visu of what's in the public interest I and I a:s soing to spand tuo no::t oight nanths taking tu.at broad view of vast's I?. the public's intarast. I 39 W4 are intorastaf. i= suing that cas=3 Arti 411CCated 20 f airly ar. ng cus tomar classes, yes.

as. rrxims: Hall I read in your brief that 22 you sut:sitted in the interi= cass dated ?tay 12, l*J60:

a statomant to thn offect that Air Products does 24 1 not represent tha intorast of the entire ge=eral 25 i

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l 1; servico ci na.

2  ! 2C. iCW.03IJ,I: Cortainly, Air Pr ducts is one i 1

3i industrisi cuatces: and tioy wore reprasenting their 4 own inturosto in that casa. And, I .iight any I navar i

5l ci'posad Air Iroducta rotton to intervana in that

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6 i, case , Mr. ;74t.iins.

7l Ma. WAT7.I:33 Is your opposition in this case I

8 basad on tho promiso that you or' Air Pred cts repre-9:

sent cau name interest that the customers that I haya Dold?

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' t .*t . kin 0 TON: Just a monent. I think that gi j thura is a cisinterpretation haru. I thish Mr.

12 J.

13 i uard=111's position is very much consistunt with the I

j 14 l position that I sz takin3 I don't th'nk Mr. Nardelli i l f 15 1 has objected to an apr,11 cation to intervena on behalf

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Of * #P"cific. inicatrial ecmpany.

I think his objec-l

! 16 !I tion is to thw association aspect of this as my con-37 l l **** b**

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732G was or is an association of unnamed resi-antial conu. mars. And what I'n objecting to is an 00 l intervenci a on Lcl:alf f an enamed group of indus-21 trial consuccen. I don't think that we are naking a l distinction es to uhother thay are industrial or resi~

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d4atial. It'c the question of an association being 24

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1 rc;r.montatica unich is at large, vaich is really !!r.

2  ::ardelli's reapcasibility. If thero is a specific 3 consumer group or custenar auch as Thatcher Glass that 1

or i= is not buing adequately 4l 7 eels that ha is no

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i rJpresented by tra "ublic Advocate, I personally on 5) 6 betnif of the ccupany would have no objection to such, i

I a notics to interveaa, such na Air ?roducts novv1 to 7;

8l incarvona sad has boca a party in thosa proceedings, f

9i  !!y concern is, and I thiah !fr. Nardelli is say*

i 10 inq basically the sano thing, is a larfar that co=es it i in hero purporting to represent 4 group of people who who have an intarost withcut defining /those pocple are.

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13 That'3 311.

An ! right nbout that, A17

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13. SA2DrLLI: You're right, Mr.firsten,and 3  :

! 16 l l's: ca say that I sivays w rry when I find myself 17 agraming with Mr. Xiraton publically. But, I would like to add a little bit of law to this arqacent.

IS !i There is a case en this coint, in re Mason, 134 NJ 19 20 .!

l 3CE"E* And if I m incorrect about this I'll lot I

i everyone know. It's an Appellata Division decision

,1 l taken free tho proposition that a trado association 22 I

^^* " richt

• int *rva^** " S**"41"9 5*f '* ***

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" card o" Public Utilition and that it's ths individual

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"""***"' # 1"d1Vi#"*1 *" tit? th*" h"" ^"7 #1 7 h*

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that nsy exist in that regard.

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! JU0C: MA 133ALL t Just as a point of clarifica-2l

tion, do you know if the 3 card has schsduled --

t 3l l j well, first, if thero has bean any appeal from my 4i l earlier ruling on Mac and if the soard is going to 5I I

address it?

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! ita. MA2DtLLI It is my understandisc, Judge 7!

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4arshall, that Edward Lloyd of 753G intands to i

8 appeal your ruling. I don't hallave he has filed l

9l 1 anything as of yet. I believe there is a tan day 10 1 l limit here under the ruins so if he's going to do i

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1 j it, I assume it will be done shcrtly.

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i JCDCr. MA2SGALL: This discussica has brought

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up some intersating quantions of law. But as I i 14 i  ;

noted earlier, I am not going to make an orsi 15 j 3  ; ruling new, I'll nake a written ruling at some i 16 l

future date.

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So perhaps you eculd amplify your points by 18 noens of a written corment or two on Mr. W4tkins' 19 motion.

20 i j I believe, according to the NJAC there is a

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tan day limit which maans there is still nine days I

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oo l 1 eft. And, I tnink there is also the option, if 23 l he wanta to reply to any of those acaneants, I 94

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> believe thers is a option of a further five day 1

o reply period. I don' t think Mr. Watkins would be

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I prejudiced through the 13 day wait for the receipt 2 of any written coanants because I think your interest 3 was cerely in tha tariff doaign portion which won't i

4 he coming up until considerably .sf tsr the 15 days.

5 So maybe it would be bact to have aa much of 6 thia in writing sa possible ao the Board and the i

7 appellats civision, if required, could have a com-8 plate record before it.

Ara there any last commer.ts anybody wishes 9l 10 to make?

11 KR. IIA-*3 INS 1 I think there is a mischaracteri-12 2ation here, Judge Marshall, and I want to clarify 8

13 it.

i 14 Doth Mr. uardelli and efr. Kirsten talked about i

s 15 i an associatlon and made some rsforence to a trace 3

i 16 association. This is not the case. This is an 17 Ad Hoc group forv.ed for the purposes of inte m ning 18 in this case to censolidate efforts and to expedite 19 the proceedings so that we don't have one counsel 20 I

here for Thatcher class and one counsel here for down 71 slidland class and right on/the line. I would think that for the sake of economy we have done something no. ,

23 tnat ought to be applauded, not criticized. We 24 are not talking about a group whose nanas you will l

i not know. We will provide you with that infor=ation.

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I II /a ars not. talking shout pecple who are not 2l cuatemers of tan ce=pany. :Ja are talking about peopla i

3' who havs collactively intervened to acenamize ths 4 ti::aa of all parties and to scenomise in ter=s of 5' their own resources.

6l JUDGE MA30:Lu.I.: All right. There were savoral, I

7 other names on the service list as parties. Oces 8 anyone else wish to maks their appearance at this 9 g1= 7 10 (rfo response.)

. 11 JUDC3 MADS 1fAI.I,s Ars there any other house- ,

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12 l kueping =atters to take up or shall wa proceed now i  !

13 directly to the opening statweents and then so on f 14 to the public portion of the meeting.

15 , (;io response.)

16 JU:GE MA:13;IALL, Mr. Xirsten, would you care I

to a.ake your opening atatement?

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18 ! MR ItARDELLIa Judge Marshal), could I just 19 ask you to repeat one nore tian because I do see a 20 j lot of peopla in the rocca and I wsat to :ake sura

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that they understand that if there is anyone who 22 ! wishes to intervene as a party, acw is the time te 23 come forward.

24 ! JUcc3 MA!cdALL: A:te there any other lawyers 1

25 : or anybody else who wishes to intervene as a party I

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i at this ti.ce?

2 MR. 'JARO2LLI: I see that a nurnher of pecple 3

i have risen.

4 JUDGE ttA335ALL: Perhaps we should go of f the 5

record at this point.

l 6l (Whereupco, therg was an off the racord dis-i 7!

cussion.)

8 JUDGE MARS 1 TALL: We will go back on the record 9

l now.

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Mr. xirsten, do yeta wish to make an opening II '

h statement now?

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i MR. KIPSTT,N: Nell, I think since there are 13 many people here, I think it might be helpf:21 if we ,

i 14 i just describe what we are doing here today and what's E 15

supposed to be happening here today.

I 16 so=stime at the and of April, April 29th, I believe, the Company filed an applicatica for an 18 increase in its base rates, That application also 19 incladed as ' application for 'interia relief,

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" tare were hearings on that application, both

'l public hearings throughout the stata as well as 22 evidenciary hearings in vitich the Peard of Public

'3 Utility Ccamissicaers presided.

24 25 i

01 19 Mn. MMT: (Continuing) Aftertheapplica-l 1l t

i tien for intervention reliaf wss deter:nined, which was 2;

3! by an Crder entered .7ay 13th of this year, tha : main 4

i case was referred to the office of Administrative Law for final determination. D a dates for hearing on that 5

main case wore schedulod to commence this :torning.

6l I 7

Cubsequent to that dater =ination and referral 8 by the coa..~1 to this offics, Jarney Central also filed l

9, a petition with the :inw Jersey Board of Public Utilia i

ties for an increase in its Levelland Energy Adjustaant 10 l t

y Char 7a, cornonly r Corrc ! to as the IE.AC, to become

i effective Septonbor 1,.tMO.

, 12 l Jersey Cantral's tariff provides that it should 13 ll file at is.ast every six ::onths a otaten=nt containingl j 14 l 3

. the statu of its fusi .:osts, maargy costs, and a 15 ll raview of that filing is made to dotsrnine whether 16 l g7 the Energy Adjustnent Chargs is appropriato for the ensuing six nonths. Each one of those filings con-gg i

tained an estimats of fuel charges and other energy 19 l i

costa for a 12 month period and the average of that 29 l 12 e nth period is the basis for autting the LEAC 21 factor for the ensuicg six renths. The last ti:na

"' ' "M * *** " * ** * ** *** ***

23 six months ago and in accordance with the provisions; e

es p I;

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for an adjust::ent of that charge effective September 2j i

1,1930, which is the sia sonth annivsrnary of the C*18tiU9 Ch*U**

3l Since that proceeding, the review of that fil-4l 5

l ing, in one enet requires expeditious treat:nent since 6,

it's intended to sdjust the clause as of September 1 tha =atter was consolidated with the pending base 1

8, rats pecceeding by the Office of Ad:sinistrative Law I

and was dster:ained that the first hearings scheduled 9l i

10 eould be doveted to tha =AC raview and the considers-11 i tien of the base rate case would be deferred until 12 t at dote:=inati n was r.ada.

-  ! 1 say this to point out that although the

$ 13 l i l noticen that went out, to the public referrsd to both

, 34 j

=.ts ..se ana th. m e , roc. edin,, - .se

. ,, l the ha i  !

of thS ti:2ing problefs,tCday's hearing will he devoted j g l

! exclusively to the consideration of the IJ.AC applica-le tion and I would expect that that will be so for 18 the next two or three hearings.

19 In additica to that we did by Or.la of the 20 ;

aoard and the Office of .W inistrative faw notice i

21 that there would he hearings for the purposes of 22 giving the public an opportunity to be heard. There 23 will be three such hearings. The fi:st one is this 24 i j evening at 7:30 in Tess niver. The seccad is *mr=

25 ;

l f

02 .

21 rcw evening at 7 !.1 in !!orristevn. An*I, the third 1

i o1

~

is on !tonda7 ovening at 7:30 at tha Sparta High l

3; 3chool.

4l I reint that cut becausa I notice there are i

5l soveral or quito a few peoplo here that want an op-I 6l portunity to ha honrd and I'd liho to point cet I

that that opportunity vill slao be available to as 7

8 nany people as can be accoenodated st thoca throa 9 occasions.

10 m pur,,ose of d e: hoaring this r.orning was s

j g primaril? to censidor the filings made by the Cenpany

'1 in supp rt f its propoced tevelissa Inergy Adinst-12 i ,

13 f "OUD Ch"#7**

j gj The rrepoesi in that tbs charge to becoca ef-

- 15 ,

fcctive 3aptember 1,1980 will provide for an in-s j gl crease of 6.3 nils per kilevatt hour in cncrgy costa.

l

l. j If approv12, that req = cst would increase JC7&L's e

f revenues by approxinstcly 3.5 porcant por year unich 18 includes provision for taxes, gross recaipts taxes, 9

20 177.3 million.

21 I don't think any further explanation er 22 I ' discussica would ba appropriate by as. We have 1 23 schadulad vitnosses this morning for cros a-oxxnina-24 l

! tion by the Public Advocato based upon profiled 25 '

jr--

l 1  !

4

! l l

t

D f.

23 1

testimony.

2 iTL"X13 SPSEALLs Okay. Mr Nardelli?

Ut. :G;i CLL:s 14. 2takul~will give the opening 3

4 statement.

5 6

I 8

9 .

10 i

~

11

12 g 13

14 i

f 3 15 8 16 L

17

! 18 i

s

19 l

20 i

i, 21 i

! 22 I 23

- 24 I

J i 25 l

l

23 1l l NR. MMULa Good =orniner, Judge fiarshall.

2!'

Sicco the March 23, 1273 accident at Ihree 3

Mila Island, there has been am lith hour crises 4

at~osphere surrounding JC?&J's various rate filing 5

here in :lew Jersey. The ter:a

• rash hemorrage" 6

was often used to describe JCP&L's financial 7'

condition. As a rsmult of thi.s cash heucreage, the l 8

!' Board of Public Ctilities found it necessary to 9;

j provide JC74L with many cash transfusions. Rate-10 g payers have been, and centir.ue to be, the involuu-l 11

! tary donors, their wallsv and pocketbooks, in 12 l sone cases, drained dry.

4 13

". Now, I'm not sayin- that the T:11 accident was i 14 i solely responsible for al'. the rate increases -

15 j utilities awarywhera are e.ubject to inflationary 16 pressures, and they are seeking, and receiving, 17 rate increases that are justified. And I'm not 18 saying that utilities don't sometines have accidents 19 or other unanticpated facility outages which just 20 seem to happen.  !!cwever, tne Mination of cir-21 cumstances and tining coincidences currounding the huainese affairs of JCPih la the recent past 23 are uncanny.

24 I JCFsL is or was a lunavily nuclear cependent i

25 l utility. In the last 3 scaths, there has been i

24 1

virtually no nucir.sar generated electricity scing 2! into the JC7&L systan. TMI-2 continued to be )

l l 3[ unavailable, as was T:tI-1. In addition, a routine  :

l Cyster Creek:sfueling turned lato a 7 sicath outage 4l 5 unaa damage, po.saibly dating back to incorrect work I

6- procedures in the initial construction of that planto 7 was discovarad in the erergen y cora ecoling system.

8 of course, JCPsL'will tall you that all of 9

, these outages wara not tha utility's fault. . .

10 it was just an unfortunata series of unusasi co-

!  ; all 11 incidences and happenstances which caused /of 12 these nuclear plants to be out of service sinul-j y

13 taneously for months and years on end.

14 The oyster Creek outage was about 4 centha j

15 longer than a nornal refuali=g. For each extra 16 r,cnth oyster Creek was out, about $17 million of 17 replacement power cost was incurred. Tnus, about 18 575 million in additional replacement power cost 19 was incurred just relating to that extended cyster i

20 Creek outage.... just about the save amount that 21 JCP&L is asking for today.

22 Judge Marshall, I know beforn you wars 23 appointed an Alministrative Law Judge you vers 24 l! smployed by the SPU. When you vers there, I'm 25 i sure you learned t2 tat when a utility experiences i

l

- 25 i 1

an extraordinary loval of aspense due to irregularly ol or is *requently occurring eventa, sucn as a bad

~f 3

storm, it is nor=al regulatcry treatasnt to 4

• normalize ' the expense, stretching the recoverf 5

over several years. The Board recantly = sod this 6

! principla in deciding that P3n3G*a fuel cinuse 7

underracovery, wbich was ae;gravatsd by an entended 8

salan I outage, should raccver over 2 years, rather 9

than just one.

10 l 3ecause of the magnitude of the prosant undar-

, j

) 11  !

. acovery and the circ 6matences tndar which it was 12 j incurred, a similar treat =unt of Jc?t.L's 90 million 4 13 dollar underrecovery is not unroasonabis, this i 14 i adjustment alone would cut JCP&L's request app.%-

15 j j nately in half.

16 l Horewer, after rev13 wing their figure, wo 17 tMnk JC76L has grossly over estimated its costs I

18 l for the maxt 12 :ecaths in order to justify the

! 19 .

I magnitude of this rate filing.

~

og l. For example, JCP&L is forecasting pheno:nenal i

o} l

~

increases in the prices of oil. Even a casual 2

l reader of the financial pages of any half-way i

'3 decent newspaper knows that oil stcrage t2nka r 94 >

I everywhers are full to the brim, coasumption is l

'5

~

dcwn, and as a result, cil prices are sctually

1 27 I

rollback during unat 6 cenths.

l 2 1 Judga Harsha11, I realise that JCPGL 1.s not 3

yet out of the woods financially, but therm is so=o 4

breathing reca now, and tha time is ripe to let 5

the ratepayers catch their brsath, at laast for 61' the next i scaths.

l 7

The rates that are set in this procadding will 8

be the rates in offset for the next 6 nonths, which 9,

t l

includes the majority of the upcoelag hearing ses-10 !

l sca. I think it's public knowledge, the hardships of I

~ i 11 '

i electric hearing custcmars of JCP&L, hardships they 12 i*  ! arm undergoing ncw.

13 '

2 i JCP&L tries to justify this LEAC petitica i 14 i I with fantastic projections of cost. increases, and 15 even if you acenpt thess projecticas, many of them 16 l will not have large impacts until next apring and I

aum=a r. Of couraa, JCP&L has been filing for 18 l i

increases on a 6 month basis so there will be I

19 l opportunity to re-review at that time.

I

'O In the unliXsly avent that their unsubstan-

'l Elated ecat predictions come true, there will be a 22 new IAV: flied in 6 months to go into effect late 23 next vinter to take that into account at that 24 l PN. The Public Advocate does not believe it

'5 l

~ i sakas any serse to raise rates today when oil prices i

I

26 I drcpping. Yet JO&L would have ycu believe that oil pricas a year from today will be shout $10 3, a barrsl higher than new, and will he steadily l

4 climbing all during the next 12 nonths to reach 5 that figure. All of their replacement power costa 6 are also calculated to reflect such an sasungtion.

I JC7&L also tella us that Oyster Creek hac 8

to be ahut dcwn again caly a coupla of renths 9 I after it restarted...=aybe that catage can be 10 delayed or not incurred at alldaring the lifs of i

$ 11 this L3AC.

12 We also think JCPT.L has assigned an unrealis-

13 tically low operating rats to Oyster C

sok when it

. 14 is actaally operating. .

15 , Than there was the much ballyhooed FEPc

16 l settlement which limited the amount Jc7EL must pay 17 to the PJM pool in the forra of

• split savings" --

l 18 I see that ' savings

• reflectedrawbero in this l

19 filing.

l 20 Thors are numerous othat technical and l

l 21 accounting issues. I won't ecuer them all now. ..

22 but based on our detailed review of the data as 23 we see it, I see no justification for any increasa i

24 ; in the energy clause for at least the next 5 =onths, i

25 and I would not be enbarrassed to ask for a rata l

i l

! 23 i .

1l dropping, because JC23L thinks'that oil priceis will be higher next Ju::: mar. Tat that 1:.s tenst you 3

vill have to do if you accept JC74L's projectico.s.

4l1 Thus, we are aaking that you focus your attentica 5

on what is likely to happen over the naxt S =enths, 6

in setting the ratas that sill be in effect for the i

"# l i

sext 6 months.

8 Judge :tarshall, JC24L is not on t?,a vargo cf 9

bankruptcy, nor is it facing an cdditional cash 10 drain. The fuel elsasa is sirsady high oncugh to i

II

.f keep JC?sL on an avan keel for at least the next l '~'

y G mentas. the tins has coce to give tha residen-13 l tial, commercial, govern: cents 1 and industrial I 14

[ customars of JCP&L the even break thay so scraly 15

} need and deserve.

I  !

16 l Judge Maramail: ae cis time, I would lika to 17 inter:n both you and ths Board of Public Utilities 18 that we *m2uld like to reservs the right to investi-19 '

gate the causes and duratics of the recent Oyatar 20 Creek outage da an engineeri:4g study. Such a 21 study could not be initiated or conglotsd in time 22 for this filing, but si:nilar studiss are undervsy 23 l sponsored by the Public Advocate in ths mattar of I

l 24 Atlantic Electric and ?SE4G's longthy Sala:n cutage.

25 Thank you very much, Judge Marshall.

1

l l

23 l

1 JC3G2 !!^UFIiT'L' C4a?- Th::A you v'trY 0 ch, 2i !T. M4Rul-i I

3; Ocos the Occrd wiaa o .aaako a atatsmant at i

4 tnis tiw?

I 3j .srs . xL:.m :hern will b.a =o opening s t.2 t a r-c a t.,

6 JUCC2 W SJA O: Deas tha IMpartne tc of .3ncrgy i

7 wi3s to naka on Opening statoesnt?

8 2:n. FILCCCC: No, Your Honor.

9; JUDG3 MARSHALL: Cons Ocean County wiah to l

sche a statarent at this tine 7 10 {

s f

$ 11 'HE* 3hU*hDUIN' T*** I *010* ?our Ecncr.

12 I a= nora tcdsy ca tensif of the decan Ccunty i.

l 13 l Board of Chesen ritesholders who are continuing their 14l:i opposition to this new rocad of rate incruauss 3

l j 15 bef re the board. We nava sppsarad is nutorous

! 16 proceodings sines :tcy of 1979, both in this tribunal 17 and before the Board, is Octcber, in opposition to 18 increaa2s acught by the C .spany, Jersey Cactral 19 Pcvar a Light Ccnpany. :fotwithstanding this f act, t

20 sinco that ti=e, cceen County ratagayars hc7s had 21 to shculder the burden of the phenotenal incrooses 22 necessary e sustsin this financially ailing utility.

23 I ** D*** D*f #* 70" 00* t *D"t* th#t ED #8 ceres a tix.a when eno .ust veigh the hardshij; ef any 25 increase necessary to esistain thm continuad viability l

1 L

I l 33 Ii

! of this conpany on the individuals, the ratepayers, 1

2!

! wuc will be callad upon to pay the price of this 3l cespany's corporsta well-bsing.

4

:aust estphasine since May of 1979 the rata-5 payers of this ccupany have had to baar the hardship 6

l of some five or six increases which here subarantially 7l increased their ratas, and thors cones a ti:ae when 8

this sinply cannot be a11cved to ecutinued.

9 Jersey Central P0ver s I,ight Company 1:a a corporate antity craatad ca paper and one which cas

~

11 j be dianolved and r= organized on paper, in light of 12 i the ongoing study by the uoard of :?Ublic Utilities l

4 13 !

to determine viabl.a alternatives to the continued i 14 i i axistence of the company, and in light of the 15 l g pending base rate case in which thse issue of fault

~

16 and appropriata racedial action will be considered, it is the position of the aoard of Chosen Free-18 holders of Ocean County first and fors:rost tnat the l

19 !

l ratapayers should not be rwquired to throw good

'O l

~

noney af ter bad and, seccndly, that the company's 91

~

present petitica should be danied pending the com-22 pletion of the alternative study by the acard and

• 3 l the completion of the grassnt pending rata case.

i 24 l Thank you very nuca.

I 25 l l

22 1 31 1

i i CU0C "J ' S"EI : At this ti=a, ! 2011ove ir.

1' I

,I would no best to cpen the hearing to tho:c member:

-l l of the public trho eich to c;cak.

I

!? . tfAPD '1!: Uculd you lika r.e to call the 4l l i roster in como sort of c dcr?

5!

I i JtTcr MA?J.EALL: All right. Is t!iers any 6l

,j 4

zort of order *: hat you enn call?

l MP.. !#AF.*)lIIIII I TCS planDing to -

JU".ect PARS:U1I.t First, R. rte thero any olected.

9 j representatiw s, eenstors or mayers or any officials 10 ;

i l of any citizen c=upe who wish to spesh at this time,

. 11 i s  !

I or shall em j st tah them alphabetically?

12 '

i

! k.R. Nann:'::lis I was planning to call Mrs.

4 13 '

=

\

i i Diane Fahey first bercense I belitsve cho in Prcsident

14 of the Public Utilities Fight organisaticn and I 15 '

! believe that most of the people pre:ent cre me:::bers 16 of that organiention, so, witn your :ormission I 17 will call Mrn. Fahey.

18 l 19  !! .4 3. DIAN3 F A H E Y, swors as a Public Witaeas.

20 ,

i Tsz SFITMrsas o. tty. I reprc: ant a very, very 21 large group of people that hav.s sprend out through 22 Men. south, Ocean, P.iddlero.x, Atlantic, 2ase:r and 23 nUnerous other ccenties thrcughcut this Stato and 24li l

solely tha reason cy ra ha m joined is because we 25 l l

1 l

l l

3d 2 Pahay 33

)

cascot and will not afford any of these increases, 1l 2! and va arm hers today with various reprosentations 3l of Pecple's Utility Fight and the effects that they l

4! have, that these increases have had on them.

5 We have 2nobile parks roprosented today. Ide 6 have the President of Mobile Parks. We have a presi=

7' cast of senior villages here today. We have people 8 losing their he:nes here today because of JCP&L. We 9l have pecplo hers today that are saying they can't i

t i l 10 : afford snedical bills, they can't afford food because 1 i i 11 of JCP&L's drastic negligence of Three Mile Island I

12 ; that the Board of Public Utilities has allowed the

13 consumer to absorb and pay for quite deeply.and we f

l 14 l are here today telling you that another increase would l-

$ 15 ' draatically creata such a savore financial hardship i

5 16 I ca people that only if you get out and see those 17 people can you possibly understand what is happening i

18 out there. So, it is our hopes and we can tell you 19 I we will provide the evidence that will show that we 20 can't have another increase.

21 I have three people which I can give you the nanes who are willing to come and testify who are 22 l 23 senior citizens, who are Mr. Deger, Mrs. McClung and i

24 a third person that at this time I will have to get 25 i I

to you later on that are putting their houses up for I

i l I

a3 Fahey 33 yj zale.

,{  !!r. Oogar had three by-pass operations and

-i

! he can't affc=d any = ore increases. This is a known 3l He lives in Tees 21rar and is a senior citisen.

fact.

4 !,

5 py is M11s d masqueady hh h is going g, 6

7l; and I =ust add that he is all electric.

8 N**' 1*h ** #**d uhi*' thi* i* "u"* "* ##**

up, and it's from the taxpayers and utility payers 9

of the State of New Jersey to the soard of Public 10 l; i  !

ctilities, 1100 nay=ond Boulevard, Newark, New Jer-11 i sey, elected officials of the State of new Jersey i i i regarding JCPEL and the Board of Public Utilities, a 13 i h a notice to be granted a hearing against 77.3 million.

4ll l in Energy Adjuztmant Charge, 113 million in base

! I5 j

i

~

rates and we want 300 million back in rebates.

16 l We are going to attempt to prove that the 17 possible negliga.co at Three E la Island has been 18 passed on to the consur.ar sad shows that the incroasa 19 l l l as an extremely financial hardship because of this.

20 I f

This reads that be advised that we, the tax-21 payers and ratepayers are cgainst the next proposed n.o increase of $77.8 million Energy Adjustment Charge 23 t and the 3113 million in rate base to be heard before 24 l the ?_Niniatrative Law Judge in Newark, New Jersey, t

25 '

I i

a4 Tsho't 34 i

1 .

I! c:2 August 20, 21, 22, 1980, i

l 2, This ozorbitant amount which is going beyond 3j wtat is reasonabla and just and which is against our 4 I constitutional rights and against the monopoly laws 5i that do not protect this Company and do not evidentally i

I 6; protect the consumer. It will further place the cus-i 7 tc=ers of JCP&L deeper into extre9e financial hard-l 8! ship. JCP&L must be subsidised elsewhero. Our well I

9i has run dry.

l i

10 t i

~ l 11 !

I 12 ;l 3

3  !

4 13 !

$- l

! 14 l I l l 15 (

i 16 l t

17 l l

18 l l

19 20 21 22 1

\

23 !

24 '

i 25 li.

I i

i 6

44 1 ?Ahe7 JS I,

1l

"In UII'

:S: (continuiner)

"ha last five in-i 9  ! creases totali=g over 300 21111on in Oncrgy Adjustment

~

.I

• O* M'***

• U*"* " * * # #]* * "

3' l

! P.11o Iz1m1C a:id Cyster Crc =h has already placed too, 4

asny people in evare inancial hardship. .Tn exor-5

"*2 1 * *** 8h"t*f f f#" **"I#*

I DiDJEE ""D *f 6l s

becauso of thair inability to subsidizo JC74L, an S

inuhility throrJh their no fault of thstr's, on the contrary, it is JC?aL's fault, 9

t'ho custocors of JCP1L didn't make the mis-10 i

take of Three Mila I.: land, Cyster Craek, Forked 11 00?&L is guilty and should be Riv r, JC? L did.

I2 I -

!* l 11abla.

4 13 I Tha conlor citizens, the backbone of our i- 14 ;

3 a

socioty, who icokca so forward to retirement, and

- la_!

most aro living in all cicetric he as, are =cv being 16 !

forced to pay a nortgage pay =ent to JC?nI.. JC?aL 1

17 pays.ents .tro higher than their nortgags paynents.

18 This is a total disgrace. 2erar.bar, senior citizens.

19 , l

! are living en a fixed incemo.

20 i

' he middio class, who work so hard to keep 21 lI this country going are literally caught is tha nid-22

dia. Remar.tcr, thera are no goterncer.t subsidies 23!

l for this group.

24 ,

{ The small business =an, too Ixany are being 25 !

i I

4d 2 Fahn 36 l

1l drives ouc of nusiness. Tna owners of all alectric 2! apart:adas ccaplanes romain enpty from tenants. All 3 41accric acmes cava c:cpped in valus. Ws are paying 4 a husvy fine. All o2 this is happening just to ksep l

i 5I a non-viable ceagany, JC2&L, from beccaing bankrupt I

t 6! ac'the expense of tne cueccmer, and don't forget it

)

7 Ana don a t disregard this. It is JC2iL82 mistake, 8l possiblo negligence, bad im estsents into nuclear i

9! power, not; we, une people.

I 10 l We the pacple are against the additional aur-

! i

~

11

! . chargo taa: you, ?!r. sarmour and Mr.11ynes, era lobby-a 1

,, 12 l inq for 41oag vica our elected officials.

i. l, 13 , We the people dru withholding the fuel adjust-

.; e i: 14 I I

ment as a protest and within our ccustitutional i

15 i rights tant this charge is ao longer a just and rea-1 .

sonable charge. This charge is being used and forced 16 l 17 on the conaumers to subsidize JC2EL for the rsplace-l 18 m e power of Three Mile Island, cyster Creek and i

I l

19 l thus no court would allow you to continue to forca i

20 l the money from the cuccomer, a captiva payer, for 21 JCPLL's drastic mistakes.

It is highly questionable if Jc2&L purchased 1 22 l

replacament power at the lowest cost. That is, the 23 replacessent power for Three Mile Island, replacament

,34

- l Power for oyster Creek. It has been brought to my 25 l i

i

4.s 3 7:h:~

37 l

1 i

I attention and I would like to have it invaatigated o-that JCP&I. did not look arcuad for the pcasible 3

i chaapest ccat in repla = ="t power. We tha peoplo, '

i 4i People's Utility Fight, would like, we damand to be 5

assured that this was dona. We the people would 6I definitaly shop =1mewhere for cheaper pcwor but una l

7 i

I fortunately we are bound to this lagal acnapoly that 8l I the Board of Public Utilitias and elseted officials i

9' are condersing. We the pacple arm in a vulnerabis post-10 tion because if we don't pay for JCP&L's mistakas j

11 l extorted from tha consumar through the Energy Adjust-12

ment for possible negligence at' Throe Nile Island we i i

13 ,

f are shut off from service and fined quite heavily.

14 '

And, at this point I would lika to interject

} 15 l that people are living with no running water in their i 4 16 ! homes, not being able to flush their toilets because 17 of JCPAL.  !!obody else can ccze around, as Cther agency 18 { can ecne around and threatan you until you are heard I

19 in court, until you can prove your came in court.

, 20 Tais Cocopany is allowed to come in, shut you off and l

21 demand the $400 and a deposit to be turned back on 22 and this is a total disgrace and it must be s*m ped, 23 l i

and we are wondering whethar JCP&L is using this do-24 posit money for short-tern loans. All of this must 25 l be investigated and I have personally notified Al i

i i

4, 4 rahsy 33 i

i 1

crdulil and Pay ;ukul c.a. I au .dseply coaccr::ed 2 thout wher.2 cu.c Crposit rc.occy,12, wnat JCML ia usiney 4 3;

it far, and why pco ule have ao: received lateract i

4 ca choir depcait :conay yearly whwn thay have been i

5 hold whan JOPt.L nat: held tasir money .in an 40-6, count for up to fivu yoArs. So, they refused to re-t 7l turn the .::onuy co taa caa::cers and dey are allowed I

to incream the disposi: avsn thcrash they did not 8l 9 !i cal.s - tan cauto=cra did not x: abs the mistake and 10 l */aero cha cuateur in rx2st cacea would not be in ends posici n il it weren't for Eis =iaths of

$ 11 '

i  ;

lo l 702:1e liiin 1313nd. I taink that 4 lot Qf th13 mt l 13 be stopped and it re.cac be investigated sad cacckad i

! 14 1 into bacanau we are the onca that are cuffering for i  !

i 15 !

N 0030 N3D##8 *

. r

~

16 '

,l 17 18 l

19 '

20 21 22 23 1

24 ;

r 25 l ,

i I

74har-

'39  :

1 ;33 nit C Sa (ccatinuing) 2ecause JC2&L 2 has been allowed to gouga the castcmer, cur alectricity i 3 has been tar:sinatad, leaving us without watar, with-4 out bathroom facilities and pungsters suffering, f

5 Don't you fergat, we have freedo:n of choice. With 6 all other commoditias we purchase and contracts we 7 entar into, it is cur obligatica to mest these debts.

8 nemenber, this applism to JCPGL too. This is 1

9i a free country. From nasas freedc:s of choice, not 10 by forcs or extortion.

l* 11 This has to be the bip;ast denial of constitu-

, 12 j tional rights, denial of duo process of law, the

. 13 14 th Araondsent by not enacting the anti-trust laws

i i 14 over presented before in the history of this nation.

E

{. 15 These laws vers enacted to protiact the people 3

16 frcm tus evils of a socopoly and to. assure freedom 17 j of speech and due prccess of law.

18 Thus, ws demand you to enact then 1:c:nediately.

l 19 Don't sluff this one off and don't turn our electricity l I I

20 off either.

21 I We demand a hearing befora the Doard of Public i

22 Utilities to prosent the evidence which is within 23 our legal rights and don't you dany this on the 24 grounds that .the Energy Adjust::2ent Charge was heard 25 ! before. -his is a new case with new facts and figures.

i l

I

40 1 2ase rata 40 percent incruse since Three 2l Mile raland, energy Adjust:nant Charr;e, ecco ::ing i

3! to our figuras, 2,000 porrent incrasse since Three 4 Mile Island.

5 Chus, piscing entirely tco many people in 6 severe financial herdship with a toss-up of either e a ting, paying medical expenses, mortgage or JosL.

7l 8 Until we are heard in ecurt we insist that 9 you stay all increases to JCPEL and stop all 10 discontinuance of service to people who withhold

$ 11 2= orgy Adjustment Chargws and cannot afford to pay i

12 this utility.

4 13 Look for other utilities to service us such l Electric i 14 as :lortheasters Connecticut /who service t.)eir custo-

! i l s 15 mars at 25 percent less than JC7&L, and it is in l  : ,

16 i the same geographic area.

I 17 Car elected poliricians are now and in the 18 future answerable to this acute prcblem, possible 19 extortion of money from JCP&L custorers, and thers-l 1

20 , fore, you are urged to enact legislation to stcp 21 JCPEL from extorting tsoney from us for replacesunt of fuel from the outage of Three Mile Island, and 22 1

23 it is highly quaationable and should be investigated 24 whether JCP&L purenased this replacement power at 25 l the cheapest possible rats.

i l

j Tansy- 41 I

We mean business and want action taken against 2

JCP&L before. action is takan against us frcs our s

+

l 3

l er.at....

4 1 5 1

1 6

! 7 8

9 i

10 i  ! 11 -

i i

I 12 -

i.

. 13 e

d t

i 14 I E 5 15 i '

! I, i i 16 l 17 i

1 18 19 20 21 l 4 22 -

i r

l l 23

{ 24 25 , '

4 1

e 8

1

- - - - , - , . - - - - . , . . , , , .- - .- - , ,% . ~ - _ _ _ , - - - - - - . . -- - . ---- - - - .- - - - ----,-- -----:,-

i rahey 42 J

gj TOS WT1'nr35: (Continuing) In sursary, I i

j have bachuc on what I taid here tcday. People hers

"* ""

• W =## * *#" ' " * "#

3i tha Sta o of ::cv J.2recy to give their testimony have 4

- told 2m aircady what they would liks to say and I 3I would appreciato it if you would give them the oppor=

6l

., ! tunity to do so. It won't be as long as mine but I s i 8

w uld appreciatu it if thn3 could be heard to see what's actually happening.

9

" # # " " "I 10 I ' hat?

. 11 TH2 tc :cs3 Tau. And, I would like you to gl i  !

have th1J cte 100 hGtcau.36 th13 is th9 r6R$on Why a  ;

j gj i va are withholding the Uns:rgy Adjushent Charge.

[ l JUCCU :tA3SI E ; Than% ycu.

15 i i

L'3 VIT52.53: I have evidonce with to and in 16 ;l I

particular I have a lotter frca 3etty Cechs which I l,e would like to givo.

18 JUDGC MAnsi9.I.I.: Do you feel it would be best 19 i I

to start off with the Corbs' letter or 20 l Tn: MITM253: Uell, could acnebody bring me 21 op those lotters? Doria 3cgsr is entirely too ill 22 to cono up here and be here today, but sua did send 23 l a latter in sad I have it here. They did submit 24 this and we did cc o up in a bus and they also did 25 l t l

l 1

l

A3 i

Il t

pay for the bua trip to chov that they did went to cocaa.

I i "

oj It esy4a *My h.:ab.ud receivna 1412.G0 a ' month

u. 3;.~,;=; cu:;a : 3, i a. cad of =mading 3j O.oro into the r9 cord, coul.1 ' iou prefor to have thosa 4'

5l,' 12COPCra00d?

'G M Um e Jud7e . Marshall, why don't we 6l l

7 mark thos into :aa record. ,

8 J'.:cGO Nt.43A:.I.: ?artsps ye: can just read 9

of

• tha sc os of the people 40 vrote tha letters.

13. CTGT;'.J s ras, ar;I give us thm date of the 10

• t letter and then we can put the nurtor on it.

3y !

3 A I 732 UI71lEOG: COris E. DOger, 73 Northusiberland 1o

., i 3 i

, 13 >

UriV" i" IC 8 EiV #*

i  !

' 14 ;

)

$ 15

f i 16 1 17 I 18 l l 19 '

20 l

i 21 i

i 22 23 i, I

I t

t 24 ,

25 '

I i i l ,

I l I l

1 2nheY 44 I

TU: WITNESS: (C:stinuing) I have another 2

cne hars from Cathesrine Sloff of 10 3ilver Creek i

3 Lane frca Ions niver and this cae is losing her.

4! I home.

5l JUDGE MAEi! ALLS Oxcuss :ne, but what la the 6

official name of your oryanization7 i

II ?nn WITNr.ssa Poopla's Utility right.

8 JUCCE MAR $HALLa How about if we givs those 9

exaibit numbers or designate them by the torn 10 l PU7. He will designata this one as PUF-1.

! i

$ 11 I Cthereupon, the letter frc'n 14rs. Albert I

12 II. Deger vez marked PUF-1 for idantification.)

s j 13 JUCGE MAMMALLs We will designate the letter i 14 l frca Catherine $1off as PUF-2. -

i 15 ! (Uhereopen, the letter frca Catherina 31off i:  !

16 l was marked PU7-2 for identification.)

17 723 MITNESS: I have one from Mrs. Betty i

18 Combs from Lakehurst,itew Jersey.

19 JUDG8 MARSHALLS I'll dealgnate this as PtJF-3.

20 (Mhereupon, the letter from 211:sbeth Combs 21 was markAd PU7-3 for identificat10R.)

22 Tau WItscss: And, I would also like to offsr

(

23 another one. Here's a guy tnat - I won't read it 24 i because it would take up more time, but he received 25 a letter from Jersey Central which states: *A re-l_ __ . _

732y 43 1( viaw of your account indicatas that your present 9 !

~

27 acount of 3119 per month has been ins afficient 3

to cover the billin.3 to date. tre have,therefore, 4

revised your ; monthly amount. a=91sning this conth 5

your new amount will be 0233."

6 This guy was turned off because how could ha 7

over come up with $233 in cua month's tirwa7 We have 8

a nillion - well, that's exageratisg, but we have 9

a lot of evidenco and if any tise in the futura you 10 would want it, we would be glad to give it to you.

11 Can we have copies of those back?

h. ,

l'~'

i JUDG2 MAMRALL: Yes, I'll see that you cat 13 ! In the meantime, I'll designate this one as them.

}

PUF-4.

15 ('Ahereupon , the letter frca Jersey Central 16 Power & Light dated March 24, 1330 to Mr. Joseph 17 :listaino along with accompanying bills and canceled 18 check were marked PtW-4 for identification.)

19 JUDGE :dAasHALLs All these documents will be 20 included in the record of the case and they will 21 he transmitted to the Board.

22 JUDQ: MARSHALL: All right, do you have any-23 thing else?

24 THE WITN53aa I think thac's about it.

05 l MR. KI2STENs Sefore Mrs. Fahey leaves, r.ay I

46 1

i )

sak one question? j 1l 1 l 2' Joca n.usunLa Yoa, 3 Ma. xIn3TIris Mrs. Fshey, naa your group t.nen 4 any position with respect to enn une of nuelsar 5 power 7 i

6i, Ta3 WItJ ssa No.

1 7 MR.IIR3 TEM : Thank you.

8 JuuOg rn;tsaALLs Thank you very =uch for your 9 tasti::ony. I'n sure ycu put a 30t of time into that.

10 l MR. NA2D3LL2: The next wite.ecs 1s a M1:: ;ael i

11 Moca.

12 11 I C 3 A I L N O C 2, residing at 135 Courtshire Drive, S

E I y 13 ' 3ricktown, New Jersey, sworn on behalf of the Public

. i E

j. 14 Advocate. ,

a 5 15 753 WITW353s Your Honor, I represent sosae 3

E 16 600 homeowners in Lion's Head, New Jersey, l'i 18 19 20 ,

l 21 l 22 i

i 23 24 25 l i i

3 .4 1 ;cca 47 i

i!

I T:C WIC42$3 Montinuing) It is an all olocal I

2' i

trie ccmuaity which is - every herwowner when they 3

t-ous;ht thir .s.e, they had a bill of 770 per s:cnth for electricity. That la using air-conditioning or 4

5 heat. The avera.;c - it averagud out to about 70 6 to 0 % a x nth. I bought into the community like the ref.a of the hocac.ecurs up there when I startei and 7

!ty procent bill new 8 MY bill was $73 at ths. tisc.

la 0325 to J 30 per =ct.th. I do not, uso any raore 9

10 electricity then I hava u2A :sfors but still erf

I hava writton to

• 'silla

. ara soing higaar and higuar.

yi

.7C3;I,and gono dev: lu parson r gaosting that =y 12 8

=a h r bc M cmd at. I sct a very sarcastic ans m

. 13 I from all tha help tacy havo thoro. Firs 11y I spcka

! 14 l J

l to a n . Hall in Lahucod, in taa :.akewcod area who 15 l, I

j "*" * **"" * "" " * # "# **'* * **

16 !

got into a fist fight. IIe caid ths thsy do not g7 chuck tau 2.eters and that I have Oc facts that the i 18 I

• * ' #" " U7 " "9' l 19

"' ## * #" O* " "*" "" "

t 20 i

' l cut of wnacA but :w said that it was ie;ossible. I 21 askad hi:n if ha vould chock tha cator and he said 22 that he would.n't because they are not allcued to 23 l l

l check :.sters. To giva you an er.a:2ple, I have a home 24 !

that is known as a I!ucksley and ny neigh!:or right 25 1

l

.a 2 Mcc4: 43 i

f namt door has the same typs of hoaa". I'

a talking

)

,, l now about winter hwat.

l Mo use tho identical equip =ent and he gets a ,

3 ll

\

4 bill of $52 and I < ret a bill of $232. Ziew, I don't

• • • **Y b"*tiSi**t ** 5** *h*** *" 'h* A*** Y***

5 and a half my adjust: ment rata has gono up over 40 6

., percent. It's actually 42 parcent of what I startad out with back i= last April. I can s t kaap up. I 8

I

! d ught ny hone like the rest of us because we are 9

10 i am act exhausting ny , savings, going into sry savings

. 11 i

$ecause I have to pay JC?s:.. I hava tc. dig into my

!  ! savings account because my pension check does not 4

s 13 l ,

i i

cover t!ie a:ttraordinary rata incranza that I have to

14 i

, pay.

l ID l j  !

3eccticcs it.1:2 a hardship. And it seems 16 i right now that everyone in the ce=sucity is finding the cat:a hardnhip. But if you grsnt this other in-18 l

crease which they say is for 500 kilcwatts, no home t in that area uses loss than 1500 to 2000 kilowatts, l 20 l '

so va are going to pay four ti=es ss much on that 21 bill becanac of the fact that either their setors are 22 not ru=ning right or they just don't give you the 23 i

servico they are supposed to give us. It is poor 24 !

! =anage=ent. Me ars paying for Titra Mile Island 25 l

34 3 frce 43 1 2 inca Ta.:ca ailla Ia1. tad startad. I don 8: "aal .ua 2 a cit.12ea va shadd ; ay .for snat. Ihdae ara all the 3 COM*sts I have, sit.

I 4i .I'C GO I C . Z L3 Ihaak you. A:n thara any 5 queair.ic.u?

6 ;G . r Z I L : Lio.

7 JU%E.C.ves Dan yon vary =.uch for com-8 lag.

9i 1G. 311Lis Tha no : 210n03 is 31anche I

i 10 31Mh10*

t f

o II 3LA3C3E A I ? C H I 3, residing at 13 Patmore Road, 19 i

~

3ricktown, New Jersey, svors on behalf of the Publio l Myocate.

"., 14

T3 MT133st I'd liho to say sc=ct.hing on

- 15 j 16 rata diccrtaination ud I will read this latter that ssus acnt to the 3 card of ? blic Utilitisc about that, 17 "Canticsos: So dir:ct your attontion to a 18

situation that exists in cur adult co munity (Creen-g

'41ar) 12 2richtcwn and s= rounding connunitius in 3ccan . tad Mcaccuth Countias. Vhoreia tacro are two 21 ilifferont ole.ctrielty ratas by J0!J:L, tho he:ms and 22 condoninlu s that..iera bought aftur June 30, 1373 23 are assessed at hi:;her ratso (Cade 70) than thosa 24 bcugnt before Cune 30, 1973 (coa E ta). Na aro s

25 I

r I

I

Jo 4 7.itchia SG .

I I

autre of :sta dilferentials between classas of users, l 2

howevor, nine: rata = c2 1s@oated on na by governnent I

3!,

'd ' C072ider ratu Jifierentials withia one clama of 4I I

uso:s in.tus ::== residential areas to he flag satly 5

discriminatory and incenaistaat with constitutional i

6l Guarantans of uquality.  ;'c ther* form, raquest ratro.

I 7  ! setiva c:cait for everenarJes followed by an aqualiza-8 tion of steJ. S'a trust that r_% abova catter will 9 receivu 70.:r prc=pt attention."

10

• i

i

= 11 l 1 i

- i I

2 19-l

. I f

4 13 ,

f i

14 .i

• l E I 15 i

16 i 17ll 18 l; i

19l' :

20

21 l

i

! 22 t

23 l l l

i l 24 i 25 l  ;

l

l 21te:aia 51 I!; 7dc WIO:JE55: (continuing) Mcv, I have i

O

~

i spcken to the s::acutive office of Jersey Cantral 3

j Power i, Light in norristown to a Mr. .tobert Kalicw 4

and he said tant yss, he was aware that I':n paying 5

for that because they were charging previous people 6

tha reduced rate over 300 kilowa.ts. He said that 7

we would get that rate over 1,0C0 kilowatts. And 8

then he said that "we h.tvo to cut off the line 9

SO&oewhGra."

And I said to him, Tsan our nullder case in i

11 j in 1970 you had e.ade these arrangsments for 1400 -

j hcmas, but then when approxi=ataly three-quarters were built, you cut off tha line ao the rest of 14 i ,

us are being discrininated against.' -

15 l I feel it's just unjustly. Living in ths

~

16 same c - ai ty -- and this is the winter months l I from Novetsber through ;4ay, not the smaner scnths 18 which adds up - Mr. Kellow told me it adda up to 19 39.80 a month right off the top of the bill for

'O 1,000 kilowatts in a total electrio home.

'l JUDGE MARSHALLt Is that a copy of his 22 statement that you can leave?

23 T1IE WIT:in33 Yes, you can have it.

24 :lere are a few other letters that were re-95 turned, but there is another persea here who has

Ritenie 32 I

scme of these records that prob 4bly would 111a to 2

say zonething en this sa:ne basia to shortan the 3

whola taing and to confirm what Isaid.

4 JUDGU tLUSBA% All right.

5 M a 3. 2UTH 2 E C Il T, rssiding at 21 Ocqwood Court, 6

Lakewood, New Jersey, swo:n on behalf of the Public 7

Advocats.

8 Tuz WITM3sst outside of energy cost adjust-9 zents and the %rae Mila Island accident, quite by 10 t

accidant it came to our attention that what Mrs.

II i

aitchie said is true, tha't there ars two rates I'

~ -

i during the winter Isonths, we have the rate schedules and this tock, a a

14 j lot of time until we got it, and we had written to 1

15 l the Doard of Public utilities and averybody didn't 16 do everything, we all dividad it up, and they wroto I

back and said - and 1 can give you this letter, 18 , g, _

19 JUDG3 MA233A R: Fine. Thank you.

'O

~

THE WITNESS: It sayst *This provision was 21 eliniaated after a cost of service study showed 22 that the coats of service to such custc=ers was 23 equal to that, of custosners without the provision.

24 Since the provision is restricted, it will gradually

'5

~

he phased out. I hope that this has been informative,"

l

l ticent 53 1l l And, this comes from :fr. Gerald M. Tobia, Jr.

9~i l And, I can leave that with you, sir.

3l ,

JUDGE H,u311M.La Thank you.

4 TI:2 WIT:2353 Than we wrote to Jersey Central 5

Pcwor a Ligat and they answered us by saying: 'In 6

short, rata matrictions are used as a tool to enabla 7

all custcmers to pay their fair share without sub-8 sidizing or being subsidized by a rata which is no 9

longer economically sound.'

10 Sell, I would like to pay :ny fair shara. But, i 11

.i I don't taink that this is fair. And, tney also i l'~ l, aald that it was going to be phased out.

13 !

j :tew, we have the em situation is our place i i 14 j that Mrs. ::.itchie has in Greenbriar where some f

15 neighbors are reluctsat to discuss things because 16 l they are afraid that they will take this old rata 1~#

of Trin away frem them and hill thom at/new rata 18 of u. I understand that.

19 uowever, it is public knowledge because there

'O

~

l are tax roles in I.akewood and again, not one person 21 did all this, but very casually we are aware of 22 the fact that old homes who had the TCWH rate and weta i

23 l ,

entitled to it as of January 1,1975, vaan it was i

24 phased out resold these homas and the resale data I ,5

~

l was 5/76 or 7/76, et cetera, where this is no longer

Uccat 54 I

aqual. So why should one area have to psy the T 9

~

rate sad the grandfsther clause continuo on in- l l

3 definitoly?

I 4 We ara senior citisona, lie dcn't want to i 5

co:ne to our children. We don' t want to come to the 6

govern =n t. 'Je want to pay our fair shara, but 7

sc=ething is wrong. <

8 1",e callad Jersey Central and we have Mscussed I 9

this with Mr. Price very nicely. We checked the 10 rata schadules. You can have that, Judge.

t 11

JUDG3 MAM E M : Thank you.

12 y TIIE WITN'J 53: And avan on the bill it says a

13 that the abcyo rata schedula is rastricted. Well, f 14 I don' t want it to be restrictad. If this is no a

15

~ f: longer equal, and I as talking about the base rata 16 front November th ough May, then let's adjust it.

17 Tat's everybody pay their fair sharm.

18 19 20 21 22 23 24 25 l

l l

i Sc 1  !!ccht .> 5 l I (Continuing) And another thing l j TJE WITICSS 1

ca=a to r.ind. It .mys that their rate schedule that j 2l w as ad a copy of, and it is dated and initialed -

3 how on carth can they know on a bill that reads from 4

S-17 to G-13 ar.d they chage :ne 500 kilowatt hours, 5

how do they a.w if I use 300 kilowatt hours or 400 6

7 4 kilowatt hours or what? What they do is take the gj first 300 kilevatts and throw it into the accelerated rate, 9

1. 7 " ** #~

10 i

I st the .046 rata instaad of putting me into the ac-

. 11

We pay celerated rato. We got this from all sides.

12 i

ou taxes, vs don't break rules and regulations, we 13

! raiaa cur family and Judga Marshall, sorsething is l 74 i I thank you for rotten in the state of Den:aark.

1a. 1 j listening to me.

l JUDG3 MAMithLLs Thank you for speaking. Just 17 gug, l

• " 'O ' ' *'" * ** * * '

18 the other, TEUN, is that all capitals?

g T.13 WITNESS: Yes.

20 l JU>32 mutsEM4: All right, thank you.

21 In order to assure the accuracy of the record.

?.?.

i and to gite everyone a brook, I'd like to take a 1

13 minuta recosa.

24 !

(O.arenpen, a recess was taken.)

25 l

l

.3o 2 56 JUCGM h7d aAJ4.s ile will now go back on ene 1l 1 I q 2l record. l 3  ! Jafore um continue with the puolio portion, f

4 I'll just like the record to note that I laave re-5 ceived a ler.ter froe one et tu customera who asked 6 that it be included into thw record. So, I will saark 7 it 2:;7-5 and coplea will se made available to all 8 the par uaa to review at their consideration.

I 9j (Whereupon, W 1etter from N1..and Mrs.

l Philip W tega datad ,'suguac IG, 10GG to Jwrsey Central 10 f

! 11 ! P war and W c W asf was m M M -5 for identi-12 l fication.)

i l

1 13 C.;IETWs Ay I Mfore you call additional I

i ! 14 , witnassea aaka a brief statament?

i

- 15 ,

JUOC ;WGP'-s Yaa.

! I i 16 M. 20m: I jut want w say for h 17 benefit of the people chas nra hers, that Jersey 18 oanual h cost cor.carned about those cuplaints 19 d wul hvaadysto all of th complaints to uy 20 m detch whhr tnere is a puh. To the extsat that we sra able to, if wa do discern a prch-21 lom, we will got in touch witt, tasu directly and 23 NFon bad to yw so M it b on m md. I I might say tnat there are tour itama which I woula 25 '

e. 3 57 i

i 1: of the probi m tua wara rained. The r.Ha to which 2 teso of che ladias refor sd to is a total clactric 3 coa m i wau m eing rata. The restriction to v.dch one of the ladica reic s is the rostrictics on the 4l 5 ee of the watsr m aur. Acd, because of that de-6 vice, tha watar heator power is only availabla in off-7l pcaa beurs. ascause of that reatriction, th.ra is a l

8 upecial racu recuccion for rastricted vatar hearing 9 usura. "'

. hat is a separate problon frc= the other l

l probica to wnich one of che witnesssa :sfarred and 10 i.

i that is the so-called 1975 frcaae.

11 :.

! In 1975 theru was a rara procanding by Jermoy i 12 '

13 l Central in which it was propcaea that the total eloc-1

{ 14 tric home rate which was a disccustad sta shculd be i

. ali--4 nated on thu basis that the Ccst of Sorrica

- la - i

i j gg Study to which Mr. Tobia referred to in his letter

! 1j to the lady who testified indicated that there was l

e, g no difference in cost to serve totsi olectric ho:ses i

tAan other residential usara. Tocause that would 19 i have meant a disproportionately high increase to

,,0 l 1

I

! those realdents who had the benefit of tha total oloc=

21 trio rate prior to 1975, Jar. soy contral proposed in t 22 responso to that cost of.

3ervice study that the total t 23 :

I i electric homes as of that date de allowed to con-24 l 4 tinue to have that discount. But, that all future 25 ,

l 1

i 1

l

.o 4 53 i

i 1 total alcetris cout:= ors wuld be on a rate Ocasistant i

2i sith all residential haating radis.

3 He tvera supgcaad to under the total cloctria 4 froe=e, not allow saw users, people who purchased 5 homas to have the benefit of that reduced rato. Os 6 the extent that sc=a of that has happened it may be 7 hecause our pople tava not been omforcisy the tariff 8 properly. I(* will look isto tho.ss inacanc:a whics 9 you have trought to our actentics e d whero there 10 hcya bean ar: ors we will ace tast they arn corrected.

. 11 12 4 13 :

1 i 14 15 i

! l 16 I.l 17 18 19 20 21 1 22 i

23 24 l 25 ll1

l 59 l

1 n, gmm (coggia.mg) e.ag,ya, 313n i

2l reforenca to a budget custcmar who received a lottar 3 increasing his budget f=cs $119 to $232 a renth.

4 That does not sound reasonable to ne althar.

5 I believe t hers may be some explanation to it, 6

but 'in any event, we will investigste that situation 7 and advise Mrs. Fahey of the situation as to why 8

that occurred.

9 If it was an error, we will correct it. If 10 there is seme explanatica, we will advise her and i

i 2

11 . the custoamr as well and the peopla here, also.

. 12 One other question was raised during the 5

13 receas in respect to the

tatorial that's at the 14 side of the room. .

i 3 15 That material was prepared to respond to i '

16 requests o.f the parties to these proceedings.

17 It is in its entirety highly technical infornetim 18 which is responsive to requests of the accountants 19 and engineers and other experts who have been re-20 tained by these parties.

21 It is not available for general distribution 22 to the publio. The infor: nation is not confidential.

23 It is evallable for anybody who wanta to see it.

l l l 24 l It has been filed in the office cf the Public Advo-l 25 cate. It has been filed here in the of fices of l l l

63 1

Adninistrative. 2.aw. It has been filed wich 234 0*partment of Enoryy. It has 'Onon filad with the 3

Imparts.ent Of Polic 14vocata, as I said. 1.nd ,

4l I reight also aay that tha reaaon we have not =sia 5

it available to the public is caly a =atter of ecot.

6 l:

It is costly to reproduce those ite=s and if we 7

wara going to make it availabla to any one c4=ber 8

of the public, we would havs to maka 1: availabla 9

to all renbers of the public, and that cost will 10 mitinately, in effoct, be a coat which the re.bers j

11 of t'.e publid would, in effect, ha a to pay.

t 10 .

j

~

j Go in order to conaarve, vs have mada it t

13 '!

l available here for the partins in the case. T.m s.

l 14 l* information is available, but copies are not 15 ' available to the members of the public. I hops i

16 that la helpful by way of oxylanation.

17 JUDC3 !!A23EALLs All right. " hank ycu.

18 Shall we continue with the public speaking l

19 section of the =eeting?

20 i t4R. :ldA2DELLI: Yes, Judge Marshall. Tha i vitness 21 next public/la Chris Albrecht.

22 M a. CHRI3 J. A:.3 R5 CH 7, residing at 13 23 Golden Lana,aamist, :lew Jersey, sworn on behalf of 24 j the Public Advocate.

25 l Titt *JIT:Isss: I'm repromonting senior citizens i l

l

Aldrocat G1 1 of the Jaydhoro area of acn=.outh county. I live in 2 niddlercad villsga whica is a senior citisans ccm-3 piss. We are 100 percent electric. i i '

l 4I When we moved in the building was constructed 5 in 1374 - opened up for occupancy in 1375, January 6 tha 2nd, hoy are garden apartments. And, at the 7 tis:e we coved in, the rents - at tne ti:se we 8 ranted the apartnant in 1974, there was a special 9i rate for all electric homes and apartasats.

10 Cn January 2,1975 that rato disappeared. It i

11 j was taxen off. We are paying the full rata now.

12 A year ago our billa were running around $40 a 5

l rcuta, approxi:mately. They hava jursed almost double 13 l fa 14 since the n eee Mile Island accidant or whatever it f 15 ! was. And, the ener7/ cest, wf energy eczt in March i

16 of 1979 van approxinately 1 paroemt of my bill.

17 The added energy cost in March 1300 was 49.5 percent I

18 l of my bill.

l 19 ! The people in our area, the people that are l

living in the ccaplex that I am living in are all 20 {i 21 on fixed incose. tTe are all people, 65 or older.

22 The bills have gone up so high that they are al:ncst 23 equaling the rent. Our rent is 3139 for a one bedroces and $160 for a smaller apartment. I have 24 :l 25 l seen bills shown to me by the people that run as i

i l

4 L

4 t

Albracat ,

42 1

l high as 0125 to $130 a month.

ty bill this wintar, tua Isrquat bill ran 3

4102 a conth. These people ara noving out of our 4

complax because they cannot afford the electric.

5 We have a number of widows who are living on a 6

very asall income. And by the time they pay their 7

rant, the electric bill, they havs nothing left at 8 I the and of the scnth to buy food.

9 Some of thest have beso able to get food stampsi but not too many of the:n.

i i

I have written to the Board of Public Utilities I

5 explaining our position, and I have a letter here 13 that I wrots tne 11oard of Public Utilities recently

• 14 g which saysa *I'm writing as a member of the People's 15 l; Utility Fight and senior citi= ens of Xi.!disroad

16 Village in the Dayshora area. It is my understand-17 ing that the Oyster Creek plant was restarted last

'8 week. If this is true, and I am sura it is, this 19 plant produces 35 percent of JCP&L's power. And,

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this is according to the papers that I have read

'l and by the statement of Mr. 3artnoff.

22 With this much power restorsd, JCP&L can 23 cut down on that much power that they are buying 24 from other sources.

'5 i

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Why then does JCP&L keep asking for more

Albrecht 43 1 increases on top of the 274 =illic taay have 2l al:1cdy sceived?"

3j r I

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16 17 18 19 - -

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,o 1 , Albrecht 64 t:C ICWOSO: (centinuing) I':2 asking all -

1 l

2 i custcoors of JCP&L to write their Stata reprosenta-I 3l i

tivos and concrosalenal representativos to investi-t i gate chase unjust and unnecessary charges. I have 4

5 received a lattar back from Str. Dartnoff and he says that the Cyster Creek plant only produced 12 percent .

6l '

of the power last year. Well, Cyatar Creek, due to 7

8

i m nagement of the Company was out for seven 9

months whan it should have been only out for about 10 2-1/2 ::enths at the ..iost. h y started up and they were only in operation for about 10' hours when they 11

found a leak in so:ae gaskets that put radioactive 12 8

I

, 13 :

water in places where it shouldn't have been. So, d l 14

! they had to shut down again.

i  !

If this isn't :misaanagement, I don't knew f 15 3

! what is. Aftar savon months the plant was closed 16 down and then they started up again and aftar all le tha investigation and everything, they still have 33

. leaks with had gaskets. Thars : sight be some mis-39 managemant g ce line. 2. Damn told 20 me in a latter that they arn charging us $28 a bar-21 rel for oil when they are paying S32 a barrel for 22 oil. I question this. Is Jersey Central power and g

Light burning 332 a barrel oil or are they burning 24 No. 6 bunker oil which I have frees good authority 25 l

l 7e 2 Albracht 65 1 la wnat utilities burn. After the oil has been 2 treated into gasoline and home hoc. ting oil sud other 3 by-products what is left over la a hard substance 4 that has to be heated befors it can be used.

5 And, from engineers in the labora'ary of 6 other utilities they tall me that this oil, this 7 No. 6 bunker oil is what is being burned. Is this 8 what they are charging us for?

9 Since that fiasco at *. tree Mile Idrnd, the 10 sanior citimans are having just oce heck of a time

I

$ trying to make everything meet with our added energy 11 l i  !

12 ' costs going up. And, it is a question whether Three

$ 13 Mile Island will aver get back into service. It's e

! 14 costing more money, from what I understand in the i

d 15 , prass and frcs other people who have knowledge, it's i 16 going to cost more to clean up Three Mila Is1AM than it would to rebuild it. Is this good business 17 18 or is it nismanagement?

19 Now, I have another thing. There are a nu=ber of ais W s made on meters. I have here a copy, a 20 21 Photostat, of a metar reading just a short time ago from Matawan, Georgia Court in Matawan. It says 22 here that the previous bill was 5296.31. The cur-23 rent bill is 31,349.23. The added energy cost is 24

$906.49 for a totsi of $2,255.72. Now, everyone of 25

7e 3 Altracht 64 1l us knows that that's a mistake. But if Jersey Central 2 Power and Light can nata mistakes like this, how do 3 ve kacw they don't make a $10 or a $15 mistake on i

We don't have and can't go out and road 4j our meters?

tha meters ourselves. This is another thing of mis-5f 6

manahesent. This is mismanagement of Jersey Central 7i Powsr and Light Company. And we the senior citizens 8 of the 23ayshora area, vi protest any increases given 9 to Jersey Cantral Power and Light Company at this 10 , tim.

We $h4nk that 3 Jersey Central Power and Light

~

11 I

12 ! Ccepany should be reorgani=ed. We think the manage-

13 ,

cent of Jersey Central Power and Light company is i 14 It is costing all of us too much money j inadequate.

15 for mistakes. That's all I can say.

I I

16 l JUDGE MARS 2 ALLS Thank you very much for your i

17 tantimony.

I Just one question. May I ask 18 . M 2 . E I n 5 T 3:f I

19 you, sir, is your group taking any position with 20 [

respect to the continued use of nuclear power?

21 T!!T. WITNESas tio, we haven't taken any parti-22 ! cular stand on it at the present tina. I personally 1

! think that nuclear power has cost us, the consumer, I

23 l 24 !

much more noney than it would have cost us if we 25  ! stayed with coal, even oil, or other noens to produce i

4 Albrscht 67 Il electricity. When you have such things as Three 1

2l Hile Island that has gone out and is going to cost 3 the Cc pany, according to the latest newspaper re-4 ports over a billion do11ars, and won't , set back into I

5' service for a nuanbar of years, maybe not even this 6 century frca tue looks of things,.I think nuclear 7 power is costing um more money. There are too many 8 accidents. Oyster Creek, for one, instead of 10 9l veeks out it was out for seven months or more.

l 10 'Jhy should anything like that happen unless l 11 l it's ::iisaanagement. Maybe the people of Jersey I I' 12 j Central don't know how to handle nuclear power. I

?

I 13 ' don' t know. I'm not a physicist. I don't know j

14 l anything about that. But, I have talked to a man s  !

and he asid that the accident, what is called at ac==

15

{

2 l 5 16 I cident at Three Mile Island was a human error. It I

t 17 should never have happened. And, it could happen i

again. But it was nothing :nechanical, it was due 18 19 in his statement to es, to a lack of supervision And **~"nagement. It abould never have happened.

20 -

21 And, he was the man that helped instali the 22 reactor in Three Mile Island.

MR. KIEST3Ns Thank you, sir.

23 JUDcz MARS IALL: Thank you, vary much.

24 l I

HR. :sA2DELLI: Cordon Driscoll, please.

25 l i

i

/c 3 , 63 l

1 G O 7t D 0 !! DAI3C0LL, residing at 475 Washist; ton 2l dt:3*0e 04Y *7111** ;'.sw Jc:cey, swors on behalf of 3' the Public luivocata.

4 742 ti: Tit:33: Tour IIonor, I have no actual 5

facts and figures hora to work with or to present 6

to you. I'm working strictly off the top of my head.

7 8

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2s 1 i

Driscoll O 1 T!!2 if!'E1".SS s (Ccatinuing) I just becane 2 129,17,d is this figst one :scath ago when I got 3l islapped with a bill for 531.42. 11cw, I'm concerned 4 with the fact of how sany others, and I am locating 5 this in Middlesex and Saymv111e where I live, how 6 many others in that area are there? I.,ika I say, I 7 have had so time for facts and figuras.

8 As far as it goes frem my own hardship, just 9 as well as anybody elce's, I have a wife that is 10 definitely ill. This can be corroborated by Dr.

j  !

11 Kuleasa who is at 121 tain Street in South 2.iver, I

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12 ):aw Jersey.

I j 13 Eer heart nedicins runs on the average of

.: l 14 043 a month or in that area. My top base salary 15 is $12,434 as.' a custodian for the Sayreville Board i:

16 of Zducation. I have had two raises in two years, 17 As fare as- the question of reading meters, 18 uum'oer one, they read them inefficient. I'm looking

19 at my bill here of 566.33 for the month of 6/30 to l 20 ' 7/29 this year. I have the figures from another 21 bill that I got on Sunday, and x

y kilowatt hours 22 were supposed to be 733. This person has 675 23 kilowatts with a bill of 57.40, and nine was 66.53.

24 I havediacontinued a dryer. I have eliminated i

25 m dishwasher. I have installad a clothesline which

Criscoll 73 1

takes cars of .no dryer, i:very plug in ny house that is solid atate is pullad when it's not in uso.

3 As far as cooking soas, this is very mer.ial. It's 4

very easily taken care of.

5 Yes, we have our son with us, but be worka

! 6 odd hours. IIe's a hairdrasser. This party here 7~

with the 57.60 la operatisg a45 foot pool on the 8

basis of al=ost 24 hours2.777778e-4 days <br />0.00667 hours <br />3.968254e-5 weeks <br />9.132e-6 months <br /> a day. The pool la fully 9

1 lit. Ife has central air-conditioning, a heat con-10 trol attic f an, electric ccokiaq, a dryer, a dish-i E

j II I washer, she uses everything. They entertain frs-12 ,

g quantly and they're busy. She gets a bill for j 13

$37.63 against mine waica is $46.83, and I'm

14 j cperating nothing.

j 15 JUDGC MAR 3:LU.L: what is the totsi acount of i

16 her bill?

17 THE WIT 3?.SS: $37.60.

18

$42.61 is on the power used and $14.99 is on 19 the favorite surcharge.

20 Now, we talk about the isafficiency. I am 21 doubting every bit of fossibility. I'm losing all 22 faith in what's going on hers. As a matter of fact, 23 z.m sitting here with a perfect example of it.

24 And thers it is.

• 5 I havebeen strictly a union man for years,

Driscoll 71 1 but good guys finish last and here is the prcof.

l uhan the lightning hit the Sayreville Junior l

2l I

( 3l High and put the power ca:sle cut, bars is an 4 example of : san working.

t 5 (Whereupon, the photograph was given to Judge l

l 6j Marshall.)

7 Tun WITNE3S: (Continuing) I thank you all.

8 I don' t have anything else.

9i Do you nave any questions?

10 MR. Kins':"1.2i So.

t

$ 11 ' JUDG3 MAltaALL: Thank you for your testieny.

12 MR. MARD3LLI: Nea. Sharon Surrette, please.

i a 13 , X 2 S. $HARON 2 U R R :: T T 3, residing at 1315

.: i i 14 l Old 14111 Acad, Wall Township, New Jersay, sworn i  !

d 15  ! on behalf of the F.hlic Advocate.

16 T.15 WITNESSt I':n a resident of Wall Township 17 in Monmouth County, and I wculd 1ike to point out to Your Honor that there is no hearing scheduled 18 l 19 for Monmouth County at this time.

l i

20 I feel, living at the Jersey shore, that 21 this has presented a hardship on the workers and the residentswho live there but cannot take a day 3

23 l off from workto come up hers.

24 And, I am requesting that there be such a 25 hearing as there was last year when it was held l

l Surratto 72

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• at the :cckgaia e au.asje or cae of tha casten la o

that area * *td' I 5OF* you will pla a. ca;;, .ag, 3 3 DO Con 81caration.

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Curratto 73 So 1, 1l JUCCH HA2SiiALLs Escune me, are you aware that i

2l we arm having .1 hearing in Toma 31ver tonight?

I 3 ! m MMSS Yes, that'a at the ccean County Court House. Duc, that is still quite a distance 4

away from the people that live in Eatontown, Colts 5lt 6j Neck, even Nall. It's over a half hour ride frca I

there. And is addition to that, we just learned that 7

8 it was moved. Ita have been telling people that it 9

was at the ccean County Court House but now we under-10 stand that it was atoved.

EC2 Mys It was moved across the

! 11 .

I \

IM , I strast to the Intersandiate Schcol, East.

12 I

$ 13 l

' think the Ccspany is going to be posting a sign at l

! 14 l the h of the Ccean Ca nty Court House to notify i  !

. everyone about it. And I think they also republishod 15 i, a

i in the newspaper a public announcement. so hope-16 l l

17 fully it should cause just a minisc:a of trouble.

18

n. mma It was, las me say at the sur 19 gestion of the Counsel that we move because they felt t Mean Canty Court Emse was hde 20 ,

g quate in terms of the size of the place.

TII3 WIT 3:SSs What about the residents of 22 23 I

l tut. NARDELLI: That's an interesting point 24 I i

becauSe tintil this Case, the Previous five Jersey t

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I So 2i Sur:2tta . 74 1i

Castral casos have had public hearings at 7

echold ol

! and I'm just wondoring why it was changed.

3l l i

st. C ast"IN: It wasn't at our direction.

4 I might say by way of explanation, Jersey 5

Central Power and Light dcasn't decide whers, when 6

or what public hearings ars hold. We marsly respond 7

to the debminatica by the Board of Publia Utilitias 8

as to where thay thi=k it 8 s appropriata to have a 9

I hearing in the service territory. And, as Mr. Nar-10

dalli pointed. out is sons other cases we had held

11

hearings in Freehold but for so e raason they deter-12 -

i mised not to do it now. It any well be that the 4 13 i j Tcas 31rar hearing would serve that area. If thers

!. 14 !

l i l has been aose problemi as a result of that and if I

3 15 I

I the Board is advised, I'ra sura that they would take 5 16 !

!  ! that into consideration the next time the hearings 17 are held. We do get varying responses frosa the people 18 dependiaq upon whers the hearings are held. We 19 j serve 690,000 spread out all over the Stats which

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is unlike Public Service's territory which ia a much I 'l I

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more contiguous service territory than our's. cur ao

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territory la spread out arcund the state and it's

'3

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difficult to find places wdich are central to avery-

'4 one.

'5 l

Tus WIT:tttSS: I understand that. But, I just i i

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.o 3 sur:stto 73 1i ,

wantsd to point out that the residents of I'c=2::outh 2

l County would li*cs an opportunity 24 have a hearing 3I there.

4 When I first joined the People e a Utility 71ght 5I I wasn't really awara of the severs financial hard-6 i' i ship that has been placed upon the constsner. I  !

7 .

joined because of the arrogance I found with the '

8 '

Company in trying to deal with then on nothing relat- l

9. .

t

ing to payments of bills but just the offrontal I >

10 .

3 ,

have been met with in trying to deal with their sm=

11

! ployees in other natters. And, our town, our local l ,

12 l

j j newspaper has come out agaisat the increases of 4 13 j l

". j Jersey Central Power and Light and Mr. Buchannan, i 14 i the editor, has pointed out that in Pennsylvania 15 4 j it was or:!ered that they could not pass the fees for4 i

16 l the clean-up of three Mile Island on to the ratepayern.

17 l

So, when I first started with the People's l 18 l Utility fight, my prhary occupation has been to 19 .

i interview customers that turned to us because they 1

20 have no other agency that can help them. I ansvar 91

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the phoce and I take down their tastimonies and I I no

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try desparately, by c=11 by on these a<isncies that 93 i

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l l are there, the consumer agencies, the Board of Health 04 i

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I that arm there supposedly to protect the cus*ms l

25 i j and in fact they do not. I try to get than some

Currotto 76 l

I, help fr:m thoss agencies. I hear people when they i

call so who live in all electric homes and are pay-2l 3

ing anrehere from two to 3300 per month for elac-4 tricity and because they cannot pay it, the company 5 will come in and demand the :noney or they will turn 6 them off leaving them without refrigeration, without i

7 toilat facilities and without running water. I 8 have spoken with Jersey central employees concerning 9 this and I have gotten various answers.

10 nere sn't seen to h one po ucy h handl-

. i i ing thia. Soc.e have told ma *uell, you cannot be

11 l1 12 tur:od off if you'rs all electric. We cannot leave a customer without runnisg water." I was even told

)

13 j 14 j hy an soployee of Jersey central that if you have i '

snimMa, that the SPCA will not allow you to be 15 l j 6 turned off because mat = mis come before htuman beings.

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24 25 I

i Surratta 77 l

1 72 '.f!T::ES3 a (Csatinuing) And yet I ha re had 2 people with en11dran anyvasre frca infancy up to 3 school age witnout running water, refrigsrstion 4 or anything. And, I have had to ask the 3 card of 5 Public Utilities, whose respcasibility is it to 6 these people vttan a health hazard exists, when you 7 have no running water, no refrigeration, no toilet 8 facilitias in this heat that we are experiencing 9 now? tibo's responsible?

10 If one of these enildrau should get ptoceine l i.1 poisoning or if one of taase adultz should get ill, 12 who is responsible 7 rihat la cur recourse? Who a 13 do we turn to?

e fa 14 In one case, I called the Soard of Health, 5 15 Tha 2 card of Health said, "we have no jurisdication 3 i E 16 where there is JC?EL involved.'

( 17 ,

I have called the 3oard of Public Utilities l

18 and we are told that we can negotiate with the 19 Company.

20 The company demanIs a $400 deposit to be 21 turned back on. !iow, surely, if a customer cannot 22 pay two or three hundred dollars a month, how can 23 , tsey pay S430 for a fee to turn thes.oelves back 24 on? Sut this we have found la negotiaola.

25 If you make enough noise and you are not

Currette 70 I ignorant of yo :: rights co=pletely, sc etimes they 2l will icwsr the fue down to as low as Sil. l 3 It is a deplorable situatisn and I wantad to l

i 4' empmasize that we are not talking about low incees 5 families. We are talking about middle inacce fami-6 lies and above. .bd anyone that can figure on an 7 average za.an's salary of $13,000 and above, acw can 8 somecne pay anywhars from two to three hundred 9 dollars a senta? It's impossible. These ars 10 working 2apiliss.

t

$ 11 One westan tcid me she va.s going to try to get 3

, 12 a second nortgage on her house because their bill E

13 that she owed in arrears was 3500 and they wanted l 14 a $400 deposit.

5 15 Thia has isd me to do some essearch and I 16 aust say I think there are some funA=mantal con-17 l stitutional questions that have to be answered.

18 The public has to know what our~ rights are and, 19 in fact, do we have anyrights.

20 It seems to I:s that all our rigata have been 21 circumvented, our due procese of law cortainly has 22 been circumvented when we have no place to turn for 23 fair trsatment. cur only recourse is to go to the 24 Company and the CMany, a scoopoly, is exempt 25 from all federal Trade concissica laws. They are I

Surratta 73 I act coinrad by ths coard of Health. And. it seems 9

that the 2oard of Public Otilities is not rspresenti2tg 3 the people. Thay have lost credibility in the eyes 4 of the people and are looked on as an ar:s of the 5

utility.

.6 Dur due process of it.w is ciremiented when, 7

in order to register a eo:nplaint againatthe Company 8

you must send $25 to the state Treasury.

9 tow, if a perscn cannot pay his alactric bill 10 of $100 or $200 or 5300 a month, how can he send j 11 $25 to the state Treasury? And unless you do that, 19 g your complaint is not even registerad.

13 l The custo:mor has no recourse against this I4 cccupany. Our right to enjoyuant of property is l

15 I historically synonymous with the right to life, l

16 liberty and the pursuit of happinoas.

17 sow, the severe financial hardship that has l

l

18 basa imposed upon the peopla are causing people to 19 put their hoses up for sale and/or to do withest 20 the amenities that surely make your home enjcyable.

21 22 23 24 25 l

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Surrette 30 1 71C ?JIT:."23S: (Continuing)  !!cv can ycu fully 2 enjoy your right to property if you have no running 3 vatar, no toilet fsc111 ties and no afrigeration?

4 He have people that are asthmatic that must 5 have air-conditioning, people that are on respirator $

6 that acat have thia in order to surviva, and yet the 7 Company 12 completely hardheartad. When we trl 8 to negotiats;a reasonable payment plan, what they 9 constituta as reasonabis is to pay the entire back 10 payments. Ivsn 50 percent, we have had people turned off that have cc:ne up with as much as SS 11 l 12 percent and have pleaded with the Company that we 13 haven't paid our mortgage this scath, everything I ! 14 has been let slide just to pay this,' and we find i i f 15 that thars is no racourse against this Company.

! 16 I think that this - I hope, Your 2onor, that 17 you will consider our constitutional rights here 18 and certainly you are better able to determine them, 19 but as I interpret then, the severs financial hard-20 ship that has caused people to lose their enjoynant o their property is one of our constitutional 21 rights.

Customers that are leftwLthout water and 23 re rigerati a and toilet facilities, there has to 24 I be an answer en who do we go to.

25

3urrotro 31 l i

1j aur censumer groups that are fuaded by tax i

2 payconts are pcwerissa. The 3carrl of Public Utili-3 ties is pcwerlaas. :sobody can stap in. And, there 4 art hazardous health conditions which exist when  !

5 this situation occurs. JC?aL also is oxempt from 6 all Faderal Trade Commisalon laws, which I find 7 sppalling.

8 We have nony laws on the beoica, fadaral imes 9 that were designed to protect the censumer from 10 harassuent, from other creditors which do not pose

11 hazardous health situations upon us and yet JC75L .

! i 12 has insultad customers that have cJone down thers

$ 13 to plead their case.

, f 14 I have been insulted over the telephone when l i i

15 I asked about a wcman with three azall children, i 16 and the employee aaid to =o thet it isu't our fault 17 that she has children. Tusy have said to people, 18 why don't you pay your bills on tim:e and this 19 wouldn't happen, and again, we are talking about

'O working people.

I i We feel that the lloard of public Utilities 21 22 by this actions has proven to hold the interest of 23! this monopoly above the customer, and I don't believe j to 21 that the act that created this Doard intended it/be 25

Gurrettu 02 [

n 1, so. I always fuit that thk 'aoard was here to pro-t tect the interents of tuo consumer, and we feel 2l ,

3 that the Board has lost crndibility in the eyes of 4

the punlic. ,

o 5 Thers is the questica of who la responsibis 6 in >.nping thia subsidiary o' this other larger 7

mcnopoly, m , alive. We ars not talking scout one 8 i idependont cc:npany, wo are talking about a sub-9 sidiary. I strengly suspoct that thara is a profit 10 notiva involved hers and I wonid lihu thers to be 3

an investigation by car legislaturm. I don't think it 12 that a largs corporation woald keep thin ce=pany 3

$ 13 alive unless they wars deriving scre benefits from I

14 it at the expense of the censuoer, i

5 Mhy are we paying continually the federal 15

$ income taxes for JCP&L when GPU suruly is deriving 16 a hugh tax writs off due to ths4 TAI accident. Why 17 are we balling thos cut when they are still paying 13 i

19 preferred stockholders? Those me the peopis that should ce absorbing some of this loss, not the 20 C **""***

21 g No had no voice in their determination of where they would obtain their power. It was their 23 ch ica to get involved with TKI, and now we are 24 stuck with the bill.

i

25 I, 1

i

Surrmico O 1 Ta.: queotien that va posa is, wno snould go 2 usnkrupt? Shoul: it be the cenaun.er? Shcula it 3 be th 2 utility?

4 I would lika to ranisd everybody that if the -

5 ccusu=cr goes bar.krupt, the utility ca= 8 t sunive 6 either. ,

7 The Board of Public utilician has cuarted 8 dictatori.11 powers cvar us as custrcorn. They 9 padsed on, I believa, fivs rato iners:.sss it.at year.

10 I attended ec,Te of the rate hearings 2 d I heard S

$ 11 testi:nony frem hundrada of people thsu and lagiti=uts 12 concerns. They were haard, Sct ovidentally they l

8 1 .

13 were not taloa into serious consideration becausa a

14 the 2oard continually pennid on his cost to the a

$ 15 custoner.

i

16 I must ask Your IIcner if gevorn= cat derives l'

17 its power from the consent of the governsd, then 18 only our elected r2presentatives have the right to impose higher rates upon us.

19 l 20 I am raquestlag res;:actfully for a 2.oratorium 21 on further increases to JCP&L sad tais probin:a he 22 referred back to the New Jeranytagislatura, which I l

23 bellave is their original pcvsr, to 1.mpose rate 24 upon a consusar, that it be referred back to the 25 iew Jarney Lagialature to conduct a f acsibility i

l f

_ . , , - _ _ . ,_..-_--m, - . _ _ -. . - -

'.ar:: L:5 a4 1  : study ,;s tac C;at econe.,.ical p;2n t: ;rp;.;y 31.ge-2 tricity to 133 co ney coa ,31 p.^2r 4 Lign: us w,5rs, 3 JUM: ;,, usa,iLL: Th.Ja.'. ya 2 ofe;,f e..g3 ,

4 5

6 7

8 l

9 10

. 11 x

12 E

4 13

! 14 a

?

9

• 15

~

i Z 16 i

e 17 '

18 19 20 21 ,

22 23 24 25

,4 1 , durrotto ,$

o Ili w

..n, naase n: Judge tarshall, if I might, I 2l would lika to/briefly addrasa one of Ms. Surretta's questions, on the questica of tarninstion of servien 3{

i 4! and the resurptian of service. .

)

5 The Dcard of Public Ut111tias has very satsn-6l sivo authority over utilities. -he Board of Public i

7I Utilitias has publishad regulations govsrning the 8 to:mination of service. Ctilitics sust abide by 9, those regulations. -

l 10 Itow, if - and I might add those regulations 11 are readily obtainable. If you peopla don't like l

l .,

12 those regulations, if you think they are too harsh 4

13 ;i en consumers, one of the things you could do, one of

! 14 ' the effectiva things you could try to do is to per-2 E 15 i acade the Soard of Public Utilities to a=end those i: I regulations, to make it more difficult to terminato 16 l 17 l 3ervice. So, this is an area that the Board does

( 18 have pcwer to do some of the things you want it to 19 do and one of your tasks can be to try and exercise 20 l your influence on the Deard to get it to exercise 21 that power.

l 22 I'm ready to call the next witness, Judge 23 Marshall. It's a Ms. Marcia Smith.

24 JUCC MA2SHAGa I notice that we have been 25 going for about an hour. Psrhaps new would be a good

! 2 i

I f

22 2 45 I

If tire for c 10 rainute brttak. ,

R. 3ARD::IJJ I frankly would just as soca 2

t4sh on, Judge narshall.

3l i

hP. 4 273 7 ".!!: I vould su.p3 cst that w go until 4i1 noon and then.treak,ce nocn for our luashcca recess.

5 J0 0 0 3 lO l's.!?d.: : All riebt, the Court Reportar 6

7 i han indicated to ce that he has so problem with that 8 20 ss can continue with Mrs. Qaith.

9 (Wheratpon, tharu was an off the racord dis-i 10 I C488103*)

• ,C r@, M a %

MC P.

$ 11 ,

3 lo i record.

13 H R 5. MARCIA 8 M I T !!, sworn as a public witztess.

i 14 s'

TE

: WITdr.53 : I just wish to take a statement

- 15

• 1" "" "" 7 "" '#8'I 16 year and a half, I restly can't baliava tha type of 37

1. "'" #** * ^#* F#N"7 ""* * #

18 bufora and in the vinter I heated :::y hc=e and had g9 i

• A** *E I** * "**'" " "" #*****

20 and I have to keep :.y home fairly var: because my 21 husband has arteriosclerosis problo:ss, so therefore, 22 I can't turn tha heat down lika, you knew, there are 23 I

i a lot of pecple who wrap t.serrasives in blankats and 24 turn tha heat down, have their he.at turnad down. So, 25 l

2f 3 ' Smith 37 i

i I i do have to % cap it fairly wars. Sut, what I paid g

,, ! '-- in Michigan to heat ny he=o, to do :y cooking and

~i ovarything was like 3100. Now I am just paying for 3;

electricity and here I also have oil heat, so what I 4

5 as paying for electricit.y is only the charge to run the furnace and not the faal to put is it.

6 7,

I just wanted to ecmo up zud really an the 8

Judga to consider the pacplo, you h.ov, whos consider-l 9

ing this rate increase because we just cannot affari i

10 l t pay any more and still support on: fssillas and I s

3; j just wantad you to know that I appreciate t'te chance to make my statement and say that we have really 12 l 8  !

13 ,:

had enough, W t we just simply can no longs: afford

j. gl this condition and I would ask you to investigata into I l g

chi. Three xue to s.o why shou 1d we havs to ,ay for

,s{

$ 1**

16 f That's really all. Thank ycu very much.

le

• Y'

• 18 MR. NARDZLLI: Ms. Coloras Lund.

79 t

(

i "O L 0 3 D, sworn as a public witness.

M R 5. D0L02SS 21 i T33 MIT5ECS: I as a widow and I have a de-22 pendant child and I am also. en a fixed isco=e. I 24,f cannot afford another rata increase because we do I have these increases avery six nonths and I am goi=g 25

2f 4 , Lund Sh 1l:

to ha forced to soll ny hota and movo entirely out o I of this Stata. I just foul that we the consu=cr i

should =ot bayrs to psy for wistskas of other people, 3, i 4i That's all I havn.

m m H. W W ,3 %ank yma nry neh.

5l M3. tT?.*CULLI: Ma. Debbi Johnson.

6l l

7' m02BI J O E M S O M, sworn ca a puhlt.c wi: ness.

h A 3.

8!

T!!! If1T'EC3 : I live in Lakohurst, a low in-9 l

cme sna. Fe b eght ou h e , and it's a farzar's 10 l t

2 gi l hone-house, icv ineces families. Itasically I feel

• the sa:w about what overybody in saying about the

~

12

.t.

Three ? tile Island and all that. I'y thing is, pu

- 13 l l

talk facts ami figures. Let's talk reality. I have i

yl i  :

tw 6 dan, one dch, nad q Maband was a a Wd 15 cat stri e and I calltsd Jersey Ccatral up to tell 16 them that I couldn't pay then, that I ccuidn't col-g '

lect welfers becanno it vaa a vild cat strika and they 3g turned =y power off. ty child ended up in the hos-

, 39 20

' the phone. They pushed se around and I as tired of 1

21 l

Jersey contral pushing us around. They are not 11 going to be pushing e around any mors because I don't naed Jersey Central. I nn putting in a wood =

24 I

burning stovo so if they want to shut :xy pcver off l

l t

i

m 2f 5 Johnusn 33 I again that's fino with ca. I don't need Jors'ay Cen-i 2l tral. They think everyona needs them and they try to acare u , but I am not scarod any noro. I an not 3l 4

afraid any more and I ao tired of their garbsgo.

5 That's all I have. I don't cara if they shut ny I

! power off assin.

6l

! JU G: :tMICHALLs I h.tvo one question for the I

S record. How much does a weed burnir.g atove cost?

T112 UIT:i2SS: It's going to cent a tbcusand 9:

' dollara vich the namn, the s ca a, the brick.

10

. i Jurc: nA7.snALLs ckay.

. 11 l .

t Just in caso, are you a : ember of People's g ,,

I i U "I "

13 i

= 1 i On: ifITM 33 Yes, I am.

g I

g JUCG3 !!AR$" ALLS So they have access to you

- la, ; -

• U**

i 16 !

i I TH3 WIT 35531 Yoo, they do.

17 '

JUCGC MMt3 HALLS Thank you very much.

I 19 '

20 ;

i 21 22 l 1

23 l i,

24 ,

l 25 I

i

W 30 l alJh i

1! :aI. 3A20rLLIs :1:s. valario Walsh, plasse. -

l 2l :t a 3. Y a L :: 2I: W A L 3 3, sworn as a public witness.

3, T33 UITUB33: This is for the Board of Public l

4 Ut111tiss. We don't really know what people ara 5 now going through until it happens to you.

6 We :soved into a new hces April 30, 1930 from I

71 3ricktown Township to Icss River. We tried to better 8 ourselves and economis.s by livir? in another hoste, 9 and we vera forced -- we cwed no previons bill from our old heme, and wo just had enough ironey to pay 10 l 11 this bill of $162.15.

12 I tried to ska arrsagements to change the

! l 4 13 ' electric in our name vaan JC?sL said that we had

! to put up a $400 deposit. Uno ham that kind of i 14 l 5  ! zoney af ter buying a home? I called the PUC and i 15 l E 16 they got it down to $240, and we just did not have 17 the acaey. So, three months went by and then was 18 no bill at all. I didn't sit back and say well, 19 they just turned it over, and I was involved with 20 the People's Utility Fight because I could not get 21 thrcugh to Jersey central.

22 They wanted a deposit and that's it. That's all they wanted to' hear. There was no more talking 23 with JCP&L. I atill hada't paid my depceit.

24 25 Obviously, I didn't have it.

i t

l Wal h J1 1 Upc returning fro: ny r.ccher's hc=o, we had 2f cono away for a whila, and on Augua- 11, 1300 2t 3 1:30 2.m. 12 tha nerning we .'cund our whar had. bses 4' taken from our home. Ho slactric, ne flush toilata, 5 no running water.

6 I naw three children. H4 had a atencs in our i

7 hcme that would % cock your aceks off. It wmtid naka S you become ill. That's hcw bad the a=all was. It 9, was from macheral and fish and all our r,s.sts, all i

10 my backup food.

t t

11 I called the Raalth Departsant because I

. 12 couldn't flush our toilsts. The baby was crying, a

3

13 wanted a drink of water, and tha

' said that we are f 14 sorry, we do not interw ne with Jorsay Contral.

a 15 My husband had an argament with them. Thsy said i:

16 that they will '.,a out there, and they nover ca:e, 17 never even called.

18 So, we got in touch with the PUC sgain and 19 explained the situatica and they said ckay, we will 20 make arrangements. They said we had to pay $152.12, 21 which we wanted to. pay frca the beginning, and we 22 had to pay that plus $11 reconnection fas plus new 23 with the underswinding that this is going into 24 litigation.with the PUC - I forget what you call 25 it -- it's a ccmplsint with them, and we had to put i

i

• ta12h 03 .

! 323 out tritn that. Thora was no money left frca ny I

oi

~! husband's paycheck at all. ire had no food, nothiag.

l .

3 I have been married 13 years, and I have never l

• 4l been able not to fand my enildren. My husband work.s *

^

for the phone cenpany. We are not on any aid or 6

assiatance. tfe shouldn' t have to be, but we can ' t l get any aid or assistance to get help.

8l Now. we have to sell our hcne that we bought l

9 four months ago. I haven't recalted a bill. I didn't receive any warning of the turnoff and to

~

11 ' make matters worse, JCPSL is accusing my husband i

i of tampering with tha meter that they said they I turned it off in the beginning when we moved in I 14

[ which was an outright fabrication.

15 They said ny husband cyaned it up and turned 16 it back on again, and that's why we didn't receive I a bill. 'They a:s trying to make up for a grosa 18 nistake that they made, and newthey are going to 19 prosecute my husband. This is what we have had to

O

~

go tArough.

21 22 l

23 24 j i

25 i

L 00 b,. Malch T:17. ~4ITICOS: (Ccstinuing) I am tired. I 1;

2l protest f1vo increscas in a year and only one increase 3J in my husband's cale.ry. I protest us p.2ying for a 4;

mistaXe at 7

C. Fair is fair and ceopin have adjustad 5

thair financas, havo borrowad to the hilt and have 6 given up r;uito cnough for a yacr and they don't get increases while JC?SL dcas, r.cw it's their turn to 7l I

8l tightan up their belts.

9

ty grandr9ather pays Sil a nonth for her elec-i 10 ;

i tric. I :n gisd that she does becsume she is a conior citizon. Shia has got on har air-conditioning, 11 ,!

! i i

plays har organ, has her lights turund en all the

. 12 l 8

time bec uce sho 1:: afraid and shs pays S11 a zenth.

. i 4 13 ;

E i: 14 l I

I f.on't undcrstand that. I!crv can they have differ-i cet rates?

15 l

1. "an y u want to got ircur noter che:ked, who 16 l t JC?sL checks it. I mean, we have nobody clwcks it?

17 f foken 33 cataide that c:n chuch cur rots: so if it'r what are vc going to do? They say it works fina.

19 :!

t Do you taan tall == that out of n1111erts of peopis 20 ll all around the United Statas that their =atars, all

,l  :

1 I of then, work right? No, that's what I believe.

!!cv, I an = t using any electric. I have it 23 I tursad en just using it for my facilities, just so 24 :

1

"* # " " 9 * ' * * "" "Y "

25 i i

l I

4 2 ..c19h 94 1

i 1 ,!

.an :tove becac;c ! Lavo an cicctric one, a Calaman 2l i

.icator, candlas and 2:2 cil lanp. I ac not using ::y 3, dryor and I .se turning my hot water en only wnon we 4 EG80 t0 'O i3" 018hC8 f0 SaniCO 'I FUf!0303*

5 That'= 211 I nave to say. Thant. you.

6 JCCI AA.Gai.TLL: na.% you very r.uen.

7 I 519. UARLSLLI: Ono quest. ion. Arc you saying 8 that you nuvar reesived a termination notico?

9 TEL WI*.'i-lids t So nelp 5.c God.

10

'3* UTR2 "LI I't:muk *fou.

gy wudge !!srchail, I don't believe tae: Miss i

12 Lollo's s:stement was on the rerord before when

$ 13 Doputy Attorney Ceneral bello had represented that 34 j the coard's Staff would ic-o.4 into some of these tor-a 4 aination cases. I would like to sugeantv.a the raccrd

- 15

a

! s that : Irs. ifal-h's ccee voulc be a good place to 16 17 start.

MS. DELLO: Wo were ff the record when I 18 19 mado tno statucent to Mr. does that the Leard would

• *#"" #" " 9# "I * #"*# ' '"Y

• E

• 0 -!

~

W..o haa their ulacerleinf turnoc of f by JC2&L with-

,1 out tha propor actific.$tica that is requirod by the coard's Rules and I aope to got tho:se neus sotco ti.~e 23 1

during th3 luncneton break.

24 li i EUi)CC 's'.A'.3dli.D I ON G'?

25

4f 3 tisish 95 p

l 1I ..T.. JA2R;;L: s Josa;b 21charug111.

2I I

J03273 7IC1025 GILL, sworn as a public 3I i witness.

4' 5 T22 WITUC002 I 2:2 2hrewsucry haciscs:.an.

6  : recont very deeply vhc= ; sea a eczpany t:st de-7! crcanos itself to 25 ;creent capability : d *. hen vasta 8 conobody to ball then out. Of I do that in my buci-9 noss, I a: . cut of hu;incc: in a vecx. Mc did it 10 I with thc Chryslar 20:2cra loc, which I cceplately di =

i 11 agrco with ar.d in thia essa I disagrse avan poro.

12 Thl: C;.?pcay 1: 2 j rcven fsilara. Their capat

,I 13 l bilitios are cut. They want us to pay for it. I say 8

!: 14 no. cou can they have a cuv plant tlat tchas 13 s 15 , years to complete caly five parcant. I sabmit that 5 16 l Fl'"4 was nover in:caded to ba built, is a stam on 17 the public cr also had 2 ana3c. ont nistaku.

Cn rata discri=1 nation, why snould I as a 18 19 l businessy.an pay a de=and charse when the all electric 20 hc=os usu mora than oy storo dcas 'ay far and soro

,1 start up time, yet as a buJincosman I cu socied with e at charge too. Cn a $300 bill, 571 was for the 22 1

energy charge and about $35 for the de=and chargo,

,3

,4 and that's a year ago, and they jac.'<cd op tha de=and chs:go up to nov 04.40 This is discrimination of the

,5 ,

Af 5 ?1:%4:03111 96 1

VO*** kind-

.o.

! no billing syste=, for a van to know what hJ47 I

3 bill is, it tanos 15 steps for a esa11 husinessr.an to fig m it out. O.c peor guy, = cot of the ti:me, I 4

l 5l 6 n't M.ov a ecck frr. a kilwatt aM ho can% @M l

6 it C"t* I found my bills running vild and then after

-; a whils I caught s littIs meter reader in the act of 8

atraaling, is de act of not turning back tha :seter 9 cn three billo and he w uid hxve stolen.7tCO. This i

La tha type f Company that wo don't need. 3elieve 10 l

. i me, via don' t need thee.

{ 11 l I f My businuus vaa knocked out for six hours one 12 l

!' t

, 13 l day and May cam o'rer and fined de wire and they

'. I j i ai--nst killed five people in the accidant when the 14 i  !

i 15 I

• L********** "Y *** * *** * ** *** ***** *******

I l They repcited it and four days later it

!  ! of thos.

16 l

was out again for thrse or fcur hours with the sa=m le "E #

• 99 # T* **

18 JUCC F.A3Scidl.: Excuse e.e, could you give a 19 t a n re dew m S.ar. Mdet M th ated 20 TH3 WIT:iESS: It was okay. sers (indicat-21 ing) is the whola court casa. It was just settled.

JUDGE MARSHALL: Cculd you may what the name 23 I

of tha court case was just for the record 7 24 THE >CnIESS: Judge Ockovich had it, okay, and 25 l

a Picker gill 97 it

• Jus CL Occh'et tio. PrJO-9171-72. In fact, for 1

your information, if I can show you tnis one part 2l l hero, thia is uhriro I courJht him in the set. Iook 3II i

at tho bills c cpared to the previous onos. They 4

had hae.n stac11n7 f_-est na for four pars.

5 6

2 C" *AUS3.UL Okay, just sc I have a docket 4

nt:bar. I trill be able to check it cut.

8 9

10 e

7.1 12 l e 13 w*

i:

14 e

3 15

16 !

17 18 19 20 21 22 23 24 25

l Pickersgill 93 I 1l :43. JunDELLI: Mr. Pickersgill, I believe I .

2I Judga Sukovich's initial dacision has new been [

j 3I '

sffirmed by the coard of Public Utilities.

4 T32 WITNES Right.

5 M3. NAM 2LLI So there is a record substan-I 6

tiating some of Mr. Pickeragill's contantions, Judge 7

.h rshall.

8 M3, 2CLLO: I don't bellave we have a written 9 Board order yet.

10 g g , *r a n n g r.t t s Gut there is a decision in his j 11 favor.

2 12 Et. BELLO: .Right.

j 13 332 WITMZGS I didn' t get the paper work, 14 but they gave it to me over the phone.

15 oUDC3 MARSHALL Thank you very much, Mr.

f i ~

16 ! Pickersgill.

l 17 l MA. MARDELLIs Frederick Koch.

18 F A E D E It I C K J. X 0 C 2, sworn as a public witness.

19 ' tis VITs%33: I live in an adult mobile home -

l 20 l village and I asa here today on behalf of the request 21 of ny fellow neighbors and friends. They are 22 interested in knowing what this hodge podge which 23 they use that termisology, is all about, which 24 averybody else in this rocos is wanting to know.

25 l And, one of the things that comma up to begin with 1

29 l Rocn i

I!

is we find - we take it from the start, as of the i

i data of the ec=plation of this plant, that .is when I

3' I the plant was cceplated before the so-called start t

4Ii up ti:ee.

MR. HARCELLI

Mr. Koch, why don't you state

, what plant you are referring to.

i i

7l 73E WITNESS: The plant that had the damagee, 8

Mn. NA2 KLLI: Throo .*.11e Island Humber 27 9

T3C WITNESSs Three Mile Island Number 2, I a= sorry.

i II '

i.

The next part of it osos up which ia very I: basic to what I'm going to bring up after. The 2 data of the startup of this equipment, and remember 14 l j i the word "startup of equipment

• and also the third l

15 part of it is this: how long this plant was in l

16 l operation before the nishap.

17 Mow, I will proceed with it, and it goes on.

18 In development and production of all, that is, 19 !

everything and anything nn the face of this earth 20 that we use, et cetera, of all manufactured products, 21 there is a certain amount of warranty, and remasbar 22 that word " warranty" period attached to all so-23 called aforesaid. Especially in, also remember 24 this, nochanical and operating products asch as 25 in the case of, as in this case, a power plant.

l.-._. . _ .-.

i ll 100 ll 111 Um are not getting pcwer fresa wind, but we do have l

2i to have nachinery to give un this power.

3 :fow , for example, was there not a warranty 4 on the generators, pumps, valves, et al at this

5. plast? Also, as a matter of a point, does.not the 1

6' contractor -- that means the builder, et cetera --

7 guarantee his work, also, such as installation of 8 sechanical waits, buildinga, housing, et cetera?

9 How, if all this he so, why should the customers 10 pay for all this defective meterial and workmanship

~

.11 . installed and manufactured by those peopla when

! j

,, I? l ,

their produ=ts and workmanship is backed up by

, 13 these warrantias and guarantees already?

I 14 ! The warranty declaration already declares 8

l

, 5 15 l them to be Issponsibla to the point whereby their E 16 workmanship that goes into this product is solely 17 their duty to either repair and/or replaes any de-18 footive prcducta manufactured by them at no cost 19 to tbs buyer of said product.

20 cartain products have longer periods. Thia is 21 very important. Certain products have longer 22 Periods of warranty than others as in the case of 23 technical machinery (electric transformers, pumpe) 24 and also material to make this machinery function 25 (valves, pipes and electric cable) .

bch 101 acw, the question the people vant to know is 1l oi hcw than can JCP&L be allowed to charge the customer

• l 3! for i=afficiency in engineering, supervia1ca, con-I 4 sultation and nanagement. And, it goes on that 5

we the people d South Wind Village believe that 6

JCPSL is using the terminology of surcharge, under-lined, as a sham to cover up their charging us for damage to TMI uumber 2.

9 That's ny submission, 'Iscr .4onor.

10 JUDGE MAILSHALL: Okay. Tcu : mentioned that it II was an adult mobile hosna coax: unity called South f

12 Wind village? Is that the nare?

g

I j I ' T:15 WIT:15SSa Yes, which is compriasd of

. l I4 senior citizens and adults 50 years and up.

f

• ~

15 JUDGE MA253 ALLS In what county?

!- 16 :l

! 722 WITNESS: These ars people on lisaited l l 17 incoos in Jacksca Township, sir.

18 JUCGE MA3SHALL: Okay.

.19 M2. KIASTEM: For the sake of clarification 20 and for Mr. Noch's benefit, I am not sure I under-21 stand what you mean by the surcharge. You are 22 referring tothe Energy Adjustment Clause?

23 Tas NITNESS: What we are getting charged on 24 our bills. I forgot the word for it.

95

~

I was just retired af ter 18 years of being a I

Koch 102 1

stationary engineer in the financial district on o

-l akyscrapers.

3 na. %I25:24: And you ara aware that thera 4 is a suit pending against 3abcock & Wilcox for -

5 '

Tli3 WIT fr.SS: I understand that, sir, and' 6

they era the ones I believe that are supposed to 7 he rapped with this, not us.

8 M2. KI23TM s Th e p a, sir.

9 10 11

, 12 3

a 13 ed i 14 i

5 15 i \

' 16 17 18 19 l 20 21 22 23 24 25

133 df 1 Mn:

I X3. NAr.02LL:s I thinA it veuld be appropriate i) '

to ask 18 there nr2 sny other people in the audience, o.

citicana, rate.p:r,* ors, who treuld lika to be heard 7 3

All right,tb.y don't you just stop op here, 4l 5

plassa.

6- 0 3 A T 3, sworn as a public wit-l M 3 S. 33A2LI33 i

ness.

8 T.!2 N ! ":(2 5 3 I didn't ecao prepared with any 9

8 bills, statenants or anything like that. I just vanh 10

• " * #1 " ' ##"" ** ""

I

" " "M -

! 11 l kncv, l' I go in rf bedroca and I negiact to put the 12 -

! lights on and I fall and break ny nack, it's say I

. 13 nagligence. I can't esil up JC?sL and say I just l g4 i broke - Or my h'23 hand can't call them up and say f

i 16 l

• ** W

• 3"St * * * * **"-* """"** ** f *

• to ;ct the lights on and vill you help me pay the le

# 7 * * "" NN 18 ova tilla.

19

=. cesr ec ,ht , m e m .ind 5.re o 2, l that sontono brought up the fset thst they only got 21 two raises in a year and my husband has not. In TZ.

cvar 13 nonthe you ;ecple havn gettan five. We have 23 not gotton a cost of living raise. W5w should you 24 got a cost of g li-ping rniss? That's all I have to i

df I ' hat:: ig l

1l aar.

2 JUCCC P.ARSHALL:

• hank you.

I 3l . T . M.*. E = I : Ia cara annne alas to nould t

i 4j like to =aha a stat ==cnt? Plansa cono for-rard. .

I 5l M 3. 0020T3Y ARGYROS, residins; at 1339 6

Tenth Avenue, Neptune, New Jersey, sworn as a public 7i i wit =ess.

8 9 T.: CT'm3 I aluo didn't cc=e with facts I

10 and figuroc. I have been in a very excitod way. I

! 3.sva agroed with what ovarybody has said hers, I 11 gg gueS3 the One 1ching I havu to contribu"a is that I i.

$ 13 as a widcw. I am in touch with a rather large group

{ 34 of wc:ims who are supporting thensalvas. Women su r i

- 15 j porting the=selves involuntarily as divorceos or

- ** #'** # # 7 # "~

16 i

tion cn fi:ad incc=ce. My budgst is very tightly g

g arrang.ed. I cannot afford - I have triad to ar-range it so that I do not have variables in it. I 39 20 drive my car. I have not bought any clothing at a regular stora for a long tion. I buy at thrift ohops and that is sort of a new thing for me but it's l something I have to do. I think twics before I go 24 '

to the doctor, tus ca=a with ny daughter. I have to

3 t.rgf ras 133

\

thi..k bef re I me rediesi ears for her, we are liv =l 1l ~

I ini en a r.argin asd we can't afford to have varia- )

b bien in cur bud ot.

~

3,;

i

! It's vary nearny to be living like that, to 4l l.

h.svo to rah = the choice, cad I believe the point was a

=ade by Diane, to nahe thn choice between whether you are going to gut a check un for y mr heart condition 4

8 9

whether you are going to pay yente electric bill.

! So, it's not only the fact that the hilla are

. 11

! l co difficult to pay, it'n that we are living on the 12 l 3 l

edgs of a precipico. trany of my friends say that,

. 13 i

I don't underntand, wo are trorking as hard as we

14 ;l ever did.

*any of :7 friends arm working two jobs.

d 15 i I know a girl who is an office nannger of a law 16 l offico in the arca sn,d she has to soon11ght. We 17l l ars working as hard as vo ever did and we have 18 l

honorable peoplo vbo don't want to be on welfaro 19 and yet we can't

sata ends rest. Soesthing is wrong 20 and it's not us and we fesel very enrae;ed.

21 this I havo never been in anything liko/beform 22 in :xy life. I nevor refused to pay a hill. I have 23 never been us2bic to pay a bill befora. Mbeu my 24 t me I husband died he left3ith a little annuity asac=ing 25 I l

l _.

4f 4 , ArTfroc igg I

l 1,

that that 'fould tske cars of ;_e and I rasily dca't

\

.cnow what alsa to cay abcut the situatico, and that:3 2l I '% roaton d.y I 11 h*=c.

3; -

i I

That's all I have to asy. I hope that you 4'

5 as probably the only reprecontativos of the people 6

baca::ss it sce=s that everfens else is undwariting 7

Jersey Ocntral ?cver sad Light, will do somethine; Ther*. you.

8l for the sany of u: that ars not hers.

JC003 .".A." S!I.E:,: Thank you very much.

9 10 U * #"" I8 *IU7CD* 018"7

3 Mould you ccou forward pleans?

12

! W R 5. HUNA J O R N S O 2, sworn as a public witness.

i. t 4 13 I

Tun itIT:r:ss: I an net a :stired citizen. I j 34 l l a:. no . part oc . ns3crity - I == a part of .

3

. ,3l

I *n not a middla class I

najority, not a minority.

16 l wor.' ting person. Is2 =ot a wealthy working parsen 37 l l

g and I am not a poor por3Ou and ther3 fore, in fact, I don't know what the heck I ats. We dos't :aaka j9

• I"# * * " * * #" "

20 welfare but we trupport welfare, we support the sys=

tam. We are honeewhara. I'd ara taxpayers. We are l

voters and we are down the tubes. 77e can't keep up v ith inflation, iTe can't u op up supportisg the 24 i

! systess. We can't koop up trying to keep op with j 25 l i

,e 5 , Joanssa 107 l

1l other pacple's sista.Nc:s, aspecially JC21L.

If I vt=t to rf 5ssa with every siistake that 2l 3,  ! =sd.s on ::rf bank scect=t, he wouldn't give no a raise to cecer ny mistaha. I think that Jersey Cen-4f 5

tral Power :=d Light is fooling around with a lot 6l of people's lives with a nosopoly that is necessary i

7 and not a luxur- and I think they have got these in I

8 a streng1c-hold because they have no other place to 9 turn. It's the only company we can buy our power I

f7 n. 1;o can't turn to another and I understand in 10 !1

I ordar to put up a windreill that you have to have a l 33 J pornit frem JC74L. We can s t even use our own re-12 l i  :

I sources and be independent.

13 j

34 So, I don't know what our class of people are.

f "' ** "" * * """ ****"***""

15 r.iddio class, we are not quite poor. What are we

$ 16 supposed to do? I know one thing, Jc74L has got to 37 use their evn resources to get thestsalves out of g

their own problems. We can't bale ourselves out and l 39 l I I them too, not any more.

,,0

. l 1

' That's all I have to say.

l l JUDGU HMtSI!M.L3 Thank you very stuch, l

22 23 24 l

25 l t  :

I  !

l

l Poterr,co 100 tl I

M2. 3.UD8LL t The woman in red, please.

l M 3 5. D0NNA M. P 3 T 3 3t 3 0 3, swoza as l

3l a publin witness.

4 7113 WItull3S: I would 1ike to say I am among l

5 the many that ars hers and zy huabead and I are 6

, being forced into a positica that we also have to i

put our bouse up for sale because se cannot afford 8

to pay a :nortgage, oil to heat our hoze and Jersey 9

central P=wer a Light as well. I am paying dochie 10 to heat my home. I have to have electricity and t $

11 I have to pay for oil to heatit, so I pay for the g ,

12 oil, and to have slactric to have light, and I 13 thiak, you know, it's very unfair.

14 We also hought our home four years ago, and

?

15 when we purchased our home we purchased it from i

16 my husband's parents. They ran up a $400 electria 17 bill. We closed on the house on August lath of l

18 1976. They tuzzed the electric off at thz house.

19 We requested service be turned on in our na:nes 20 since we were now the owners, and they refused to 21 do it until we paid the bill from the previous 22 owners. We shoold not be held liable for his 23 parents not paying their bill, but we were forced 24 to put down S96 to JCP&L to turn the service on, 25 i and through the advice of our attorney, we wrote l

t

Fotorcon 103 Il ca the back of the check what the paysant was for.

2 Jersey Cantral refused to turn it en in our 3

name, refused to transfer the service in our name, 4l and we had to pay that bill, ad for sonths we were 5

dunned by Jersey Central with nasty la*.ters and 6

their attorneys and their coliaction agsacias that 7

we were supposed to pay the balance of that $400 i

, 8; gn, 9

These are the practiess that have bean going 10 on with Jersey castral Pcwor a Light for years, and

• 11 I think there should be a step put to it.

12

. i We have suffered enough, and it's just not

13 l fair. I mean, we are just a.few peopla hers.

i I

14 ! We are talking about thousands and thousands of a i f 15 people out there that are suffsring the same prob-i 16 less that we are.

17 Tou talk about the guy that brings home $100 18 a week and le trying to support four peopla on that, 19 and he has to pay JC7&L $200 of it. It's tsefair.

20 That's all I have to say.

21 JUDGE MARSHALLS Thank you very much. Off 22 the record.

23 ,

(wherospoa, there was an off the record dis-24 cussion.)

25 JUDGE MAJtSHALT.a Back caths record.

9

- ~ - - -

, , . - _ m , . _ _

Gtolzenberg 110 ,

\

1 3DMUMD S T O L 2 3 3 3 E R G, residing at Southwind 2 Village, Jacksca Township, sworn as a publi= witness.

I 3 THE WIT m 5s Your Honor, a year ago I retired

4 from the State of New York. I workad at the Depart-5 ment of Labor en unemployment insurance. I was told l 6 saw Jersey, the Garden State, is a good place for l 7 senior citizens to =stire, so I sold my house is 8 Queene, New York. Con Edison was our power ccupany, l

l 9 and I moved to Jacksca. The first thing I noticed 10 was that there was about a year ago, my hill ca tha t

l 11 average was $4 to $13 more every month than ny 12 neighbors when we all used about the saa's. Then i

this spring I took thrae weeks off to visit my

. 13 lI i

! 14 children in Icag Island. When I case ha=k I had i

5 15 a bill $4 less than the month before. Instead of i

E 16 442 average, I had $38.

17 Now, I dealt all my life with the public and 18 know how to speak to them, be nice to thes, treat 19 them nice. So, I called JCP&L and a lady answered 20 without giving here same, and I explained to her 21 that I had shut everything off. She said, did you 22 leave the refrigerator and, and I said yes, I have 23 to leave itca, and she said that that was it, g I said, I mean, 338, and that's it? She 25

• **** I* N ""* I ** "" * *# # '#

stolzenber1 111 1 .

l naca and she hung up. I callad,a ain and askad for j 2 i j the sapervisor. I spoke to the lady, she was very  ;

I 3 l nica, and she said maybe the man made a mistaka, 4

and next scnth your bill might be, instead of $42, 5

might only be $26, that he could have made a mis *Me 6

in his reading.

l 7 The seat bill was again like 340. so, I called 8

up agais, and insistad on having the mater checked.

9l I just got a runaround, and they told me that they

. don't do that.

i Mow, I know when I had a sisallar thing with l 3 Con Odision they told me thatthey would check the l 4 13

.t meter sad they came and put in another meter, that i 14 i they put la another meter most of the tize. I feel 5 15 g that the treatment this company gives to their 5 16 customers is terrible. yhey are not -- at laast 17 they could have said that we will check your matar 18 or give you another meter. I was completely turned 19 down. That was the last thtt heard.

"O

~

Another thing I would lihe to bring out is 91

~

when con Edison had a new plant called the Ravens-vood in Long Island City, when that broke down 3

when it was new, the first thing they did at that I all 24 time was eut out/Ethe dividends to their stock-

'5

~

! holders and when that didn't help they asked for an

i stolzenberg 112 i

1l increase. Why doesn't this company do the same?

2 I We have people who - I don't say - I can say that 3 I am comfortabl=, I like it in Jersey, but we have 4 people who only get three or fcuz hundred dollars 5 for social security and with that they pay $120 in 6 rent, and we have cae man who has asthma and he musti 7 have ai.wditioning on all year long, and his bill 8 cones to $130. That nam hasn't got encugh :soney .

9 laft for Ecod. Fortunately, ha gets picked up once 10 , a day to a senior citizens

• ho=e so at least he'

! 'l i 11 has one hot : seal a day.

12 That's all I have to say.

I a I

13 I J C

CE M N s Thank you wry much, a

i 14 i

5 15

~

16 !

l 17 18 19 l 20 l

21 .

22 23 .

24

\

25 ! >

l i

5f 1 ,

113 j

'X3. M "'i1In Judge ;tarshall, I know we are 1I 2,

stout to take our lunchaca break and that =any of ,

I l 3l these people won't be hach.  !!ight I take two minutes I

4 on the record to explain the rols of the ?ublic Advo-5 este in a rats proceeding?

JUDC3 !!ARSI!ALL: Certainly.

6j 7l Ma. EARCELLI: I will be brief.

I think I should spell out for you what the 8

process is here today. W.o Ccmpany has filad an -

9 10 application f : an incressa in its Lovelized Inergy 11 '

Ad)****"** C1#""* "f * ** 077'3 *i11i'* "" #" **""*1 basim, 8/10ths of a cent per kilowatt heur',

}a 12 i

! The Advocata's role is to represent the pub =

13 11c's interact, to represent constaaers, people who

! 14 i I we are sot =, to, g are .rved by the 3ver co=pany.

13 l i

j  ! when we go back on the record this afterncen, to be 16 f

crcsa-exa*4ef"7 the Company:s witnesses. At some 77

~

" " # * " ** T' #*

18 duce cur own witness. He have engaged Mr. Thomas gg 20 i

gl regulatory pelicy and resciatory law, and we are going to present him to contradict ti.e company's contention on this application fer a $73 nillion in-crease.

24 l ,

wo hnve Icarned enough about this case already 25 l

.: 2 - 114 l

1j to inaw that - I : culd say is prafsce that we i

1 2: :ra%e a race --datics is alsomt avery utility case.

3j A company uill ::q est ;; c.=snas of dallars and the I

4iI Avocato Will 0.c.a s pc.:ition as tra whether they i

5I should get I c: they should t;ut X minua Y or scactly l

6 waat tacy ahould got.

7 I do %:cu at.o gh a: cut ~"

• c22e to xsow our 8 re - ndatics in this case, ar.d it's a fairly unusual one, that it.'s going to he scro. It's going 9l i

10 l to be zoro or just a varf listic s= cunt above zero,

! i

11 l and we are going to tah a very strong position for

! j 12 l Judge Mar:shall a:.d tac Soard of Public Utilities.

i

- 13 We ara going to ::ny trasculy wust wc thish they should e

E i 14 got and not - although we systpathise with your i

i 15 plight au consumers, we are not going to say that i 16 l the Company should get thin little becano of the ,

17 hardahipa of you consumora. 15e a=3 going to mantion 18 that, but we are going to giva facts and laws sup-19 porting our costantion through tho =outh of our wit-20 ness and briefs that our office will. film as to why 21 they huld not h getting any of this money and 22 then Judge Y.arshall will be writing as initial de-cision based upon tLe record as ha ases it, und then 23 i the parties then have an opportunity to take azeep-

,,4r I

25 l tions to his initial decision acd then the whole i

l l

1

d3 115 I

racc:0, hic 8 decisic=, the briefa of the pa.~

3 ';  !

/

2l tion, tha transcript of ta.J has:iaga, goes to the

?, card of ?c li: .*3111tico. S.oco c rea Co d asioners 3l ara the p4opic who mot rates, utilief ratos, in Naw i

4l 5

Jorsay and they will nake the fissi cacisien. They 1

i

'4111 decide how r.::h of the 177.3 nillion this com-6lI

[I ;any is goin7 to ;ot.

g, t night add that wt do hava an autcxutic I

9 I

i right of appcal to the courts fron utilitf decisions l which -ra sor:oti:tos : rail ourselvez of, but the Doard 10 i of Public ceilitics vill n.W a that final dacision.

. 11 i Itov, is th anyona else? I do Xnow that

. I2 l

! l seu of you an sp en hfora and I Md leave

. 13 !

j gj i

that to J:dge !!arshsil na to what his policy is en i

that.

15 !

!  ! 'rt. DICSCOLit I s- cho hefers but I woald 16

' like to add sonathing thr.: I forgot.

! l ,e, l l A'DCI tta::S'1;C.La I would ask that any of tha 18 l i i

gg l parties if it would cause a:rf problan?

32. :1AftEI2 "'hs Ac*rx:ato has no objection.

20 J U D C 2 P.A ?.S '!1 C .L a I" 'fou vant to ceros up 21 again, than, sir.

22 23 GOED0N DRISCOLL, previously sworn as a public i

24 I witness, resumes the stand.

25 m WIT 2tESSs Your I!onor, I'm goisq to make I i i l

i

e

. 4 Cri: coll 116 1

! this briof. I haro got a :;uastion in ::a back of 2 sy aind. I's golag to t:11 you, ei<trybody in the 3l courtrocs, whaa y=u haar it that thy cra going to 4 have to agruo with us.

5, IPamber one, as far sa nsclear, this is not i

tfe are constantly plagued 6l our only source 2f pcwer.

i 7

with a=d if we read tne aditorials in the newspapers I

8 l and I an act a collage man and that's all I de 1

9 is read the editorials in the papers, and va ars 10 plaguad wita garbage disposal on how we are going to

• I it l got rid of it, who is going to tnko it. Okay, new

! I I have been reading in =y local papers whern Public

., 12 ! '

Car 71co, wto has prohnbly got sone managonont with 13 f 14 , 3 little s=ar.s up thers, era looking into this, i i s 15 l loo ing at one sito or two sitos that I know of is i I Thr-se states, I don't k cw the j  ! 16 i New 3rusavick.

37 nanas of them, and I wish I had researched it, but dere arn %ee statos cat han gene to nis waste 18 19 disposal. They have cut their consuser utility bills by better than in half. 1; bat is stopping us

,,0 l 21 l 1* #****I*

,,,, i There was talk of a olant beginning to be

__ j i e nsuenated in Scuth Amboy and all at once it died.

23 Is poney cening out of soraebody's pocket? Is this 2s ! e. answ.o l

l 1

l I

)

4f 5  ::riscoll 117 (

1l h i

I We no 1 cager have to have worry about oil avaa. f

' I  !

i

~

I would definitaly - I would love to dig into sonae ol l 3f of the politics in this State and furthermore, this i

4( is some other thing that's got nothing to do with it,

l .)

5l but what I learned after just getting a dose of fumes Q j 6 last week, and this is all off the record, but I 7i cannot unA=rstand why it soeus that all the officials l

8l and the politic:ians in this State are hanging back i  !

9! when it comes to doing anytning for every poor person  !

l 10 sitting out there in this courtrocas whera these stat t ments were heard.  !

i: 11 ;

6 y

12 i My wife is being forced to work because of the

- s

13 , cost of her medicine and the Judge has Dr. Zulassa's  !

i i

\

j 14 name and he can verify it any time he wanta. }

. {

15 ( Thank you. [

!' f were there any other meaners 16 JUDCs MARsifALLs .

I 17 of the public?

18 ,j ma, pun?fus I believe there was at least i

I 19 one other.

20 , (Whereupon, there was an off the record dis-21 cussion.)

22 JUDGE HAnSAALL We will now break for lunch.

23 I will note for the members of the audience that the 24 { remainder of the hearing today and all other days i

25 f are open to - W s of the public and theratore theyl i

I.

i af 6 113

, ars volcrme to continuo vitn us after lunch.

7 1

!e will ncy brech for lunch.

2 ,

h (;shcrourcr., the 1=:cheen rsesos was taken.)

! 4 5

6 .

1 7

8 9

1 10 4

11 12 i  ;

4 13 E

i. 14

15

!  : 16 I

17 18 19 20 j 21 22 23 i l

l-24 25 l'

i 119 l I A77323C03 SESSTON 2 JUDC3 MAnsIUC,La aie will go back on the record 3 now.

4 .tr. Kirstan, do yeu wish to begin the presenta-5 tion of your witnesses?

6 i MR 1I3s75M: Tes. Mr..Gentieu is our first 7 witness. Mr. Contisu, would you please take the 8

stand.

9 M 2. L A :s R 2 M C E G 2 N T I 3 U, sworn on behalf P.

10 of the Petiticnar.

11 DIRECT EXAXIMATION 12 BY I42. KI2STSN:

i j 13 Tus REPC2TRA: Would you please give 14 us your full name?

2 3

15 TMZ M.333 : Lawrence P. Centieu.

16 I'm a sonice staff analyst la the rate divi-17 sion of General Public Utilities service 18 Corporation or CPU, for ahort. And, of 19 course, I'm presenting testimony on behalf 20 of Jersey Central which is, as you know, a 21 subsidiary of General Public Otilities Cor-22 poration.

23 Q First, Mr. Genties, to bring the record up 24 to date, there have been a number of erhihits which have been 25 distributed among the parties previous to today's hearing.

Contiou-dirnct 120 1* Is that cornet?

2l A Yes. Jack, could we delar reviewing that until 3

after we aaka a more or less paaral statsoemt in response 4 to the proceedings that took place thia not-ning?

5 Q Very wil. 2 m wat to uke such a stah-- l 6

ment first?

l \

7' A Yes. I thisk we do want to respond sa best we 8

j can to Jor.4 of the things that vers mentioned this morning.

i 9l h wh ht z.any of the group has left.

10 I see there are, however, a couple still here, but we did i

11

.j goal go; the record we would want to respond as best we can 12 to some of tha comrents this morning.

j 13 l First of all, a number of cocaants

i 14 l ase=ed to break down into three categorias. Ce difficulty i

15 l the all electric customers are having in that they are very i: I 16 f haavy users and, of course, the increases that Jersey Castral 17 has rocsired following the Three 2111-a Island accident have 18 been substantial and have impacted heavily on that group.

19 They have also substantially impacted 20 on senior citissas and we are not being insensitive to that 21 fact.

22 Another area of problems involve custcner 23 cutoffs that there were ecuments that insufficient notice 24 was given, is many isstances, where esatomers were cut off.

25 l And, we sisF l y want to indicate that we are not issensitive l

l

Genticu-direct 121 J l

1j to the special procissa and concerns of thcaa three groups.

2 In fact, we would lika to acw =ces to .seme of the apoeifies 3 to 111=atrats that we are not indiffarant to those ccacerns. 1 4! 1 Ws, and I think Jac2, earlier this 5 :norning, did comment on the record that we will look into 6 the cus*omer comp 1 mints that were raiaad this morning.

7 .

In view of the number of them, we feel I

8 the best way to handle that is to simply review the transcript ,

9l and nort out the ones that appear to have the highest 10 priority. And, we will endeavor to, before this record is

11 closed, have those daalt with.

i 3

12 We cita as one example the customer l 13 whose budgated bill went frca $113 to $293 a =onth. That

.=; l i

j 14 I appears to as to indicate that it la neces==7 that that i a l I

i s 15 : shculd be looked into, and we will. We cita that as as l 3 l 5 16 example.

17 In addition, the possible non-applica-18 tien of the tariff provision with rsspect to the special 19 treatment of water heattag customers. No will follow up on l

that as well.

20 l 21 Is view of the number of ecsplaints, 22 however, we can assure that we will be able to deal with all 23 of thm prior to the conclusica of this proceeding which is, 24 ,

as you may know, to be wrapped up is time for a september 1

\

25 l revision in Jersey Central's Zaergy Clause.

i

! I i

l  !

r

Genticu-direct 102 2foving to ano .her point that was raised 1l 1

2 i thia porning, tra. Fahey indicated oc she felt that the Jers f I

3 Cmatral ratepayers s44 dad asscrunca that Jsrsey Castral is 4

seeking and getting the lowest cost replace: ment power avail-5 able. And, I can assara you that tnat la the case, and we, 6 in fact, have two witnesses present thia afternoon who are 7

prepared to, is detail, review not only our past efforts in 8 this area, but what we are currantly doing and what we pisa 9 to do in the future. and, in fact, va feel that our racord 10 since the accidant hora has been excallant. aus, we are

i 33 still pursuing these advantageous purchase power deals which 12 largely involve the cotaining of econc:mical coal-fired i

I 13 generatica from non-PJM utilities.

{ 34 Rather than have s:e elaborata on the i

5 specMcs of hae, we will have 2ichard Bright from GPU and 15 l

! also 206 Stager available today who are thoroughly familiar 16 with those areas and will testify to them.

17 i

l 18 i

i 19 20

21 l

t i 22 23 24

(

1 25

, 1 l  ;

l l

I q1 Gontinu - direct q g '

A (continuing) on a related subject, one of t 1 ,

i the part.ies indicated that a great deal had been said about the cost plus 13 pricing of CPU *a and Jersey Central's TM l

I related interchange purchases f..Tn PJM. We indicated to 4I the partion in several di:covery =atters that we have had prior to today's he:rine; that if it my ears to us that that is likely to como into being, that wo will i=nediately re-8 f cracanted for the 137.C proccoding. It does new appear that, 9

I i thera la an c collent chance that cost plus 10 vill be in-10 l i

j j plemantad in Septe=bor snd tre thorofors have prepared and

. 11 1 E l vill submit today an exhibit showing the impset of cost 12 i

plus 10 on Jersey Central's energy cost forecast for this 4 13 a

i proceeding.

14 ;'

• f I sight, bewever, point out that we 5

15 !

i t

! have bean pursuing cost plus 10 for a very 1cng time, ever 16 eince the accident which wa=, of course, in ?tarch of 1979.

17 The real valua of cost plus 10 was i=r.adiately following 18 the accident when CPU and Jersey Central were very heavy 19 i l

purchasers of interchangs energy frem PJM which in some months amounted to 30, 35 million dollars. As time has 21 .

gone by, the coat plus 10 concept 1.naguished and we have 22

! made other arrange =ents with other power companias for 23 our purchases, large fren non-PJM sources. So this particu-24 i lar pricing has far-receded in signi*icance. And, our wit-25 ;

i l

t

':q 2 %nticu - li:2ct 124

,l I

l nesses will show in datail 1stor today that ainply recognis-1l 2 ing the fact that Jarsey is now ::. skin; nini=*.re purchases i

3 ,!

fres PJM, that this cucagad pri=ing is far ::duced in its t'

4 significanca.

P.owever, va still obvicusly fael thac 5

6 t.ta adjestsont should ha ==do and is vill be nada.

I

..nother

' point that tas raised thia norn-7l I l 8 iag is that ena of t.'.s sponers montioned a cocpla of poscia bla arnas Of achiaving econ ==ias as a cubatituta for fuel 9 .'

OT 3C 0 Cf th* CDC 'anctic =cds.s of g e nration that havn 10 l hton talk =d aboct, n2=cly the pos::1hility of burning hunksr ii s.

lo !

i d cil and/cr Tarbsqt. 00: witncasets this af torncon ara

$ 13 l prapared to revir.s W s a~.l Jar:27 Oestral's offorts la j tus burning of n=to. It's zo=ething that we looked into 34 > ,

1. 'aJaral year: sgo ::d W rs pnpusd to renal the nsdta 15 I

4

of those efforts.

16 l I

Just as an indicatic?. that thase le l I

gg j thoughta havo occurred to us sa voll, we will do it, and g9 ;

l also we want to make tha public and the ratspsyors aware l

1 I that we do lock at theco things. Another speaker mentioned

,0  :

l 21 the fact.that when coned r:a into difficulties back in 1973 and 1974, I be11 ave it was, they c=1tted their dividend "9 ^ " '# '#" * ## "E# "' I 23 looked to their stochholder to bear the burden. l 24 i i

1 Must assu=e that this per2on has to ,

25 l i I

l l 1 i 6

[

i l

l 1 - - -

1 2; 3 ,

Gintieu - diro=t 125 l

I be svaro of the TU experiocco in this regard. Caned omitt.ad its divido=d "cr one -quartor. S.st's r.y recollectica. Fel-2f 3! 1 tring th.1 a=eident in 1979, N:rch of 1979, CPU - well i

first, it's yrc-sceident dividend rats was $1.80 per share. l 4j That'n en an annual basis of 45 cents a quarter. Following '

5 6, the accidant the May dividend n s educed to 25 cents. It i

was hold at that icyc1 for the May, P.=qust sad Novonber pay =

7 8l  ; wonta.

It was c=ittad in its entirety in Fahrtt=

9.

10 ary of this year and no dividend has been paid since the f 3y August dividen." was amittod, met recently.

3 I thinh another thing thst 3 s useful to 12 f ,

- 13 l I

hecp in mi=d in thin regard to gaugn the impact'ef the acci-

.=; 1

dont on the stockholders of GPU is that prior to the August i4 l I i

dMend odssb., the rednetions and er.issions that I just 15

$ 16 nantioned ecst the stockholders a less of dividend income i

77 j of $32 millien. Frcs the ti=e of the accident through May of 1990, tr.e beck value of CPU's toch has declined by $1 bil-33 l I I

lien dollsrs. I think that puts into prospective the shar-19 20 ing, if you will, of the burden of the TMI accident, the 1

st=ckholder reistive to tha ratepayer.

21 j I

1 0 You said beek vaine. You meant the market 22 l I

23 I ***'

A Yes, Jack, the aarhet value. n.at's si bil-j

,5l uan is.. than its heex vstee at th .nd of x.y.

l l

l l

l

F 126 4 ,

C= a':Lau - Li:uct 1

1l 1

J.aa ns: apanhar thh narning a cr.d tast

\

2f cza of oc: ::ata =cuMs was involvcd in .:ene qu.aasi.ansbla l

ial ::cennte. TM t actor 3l 1 ac=.vity with millian of ::::s 4  :::s1: 22a hacn !L::1. *::.a :.::::L:g e m a: 'w: ya hes:d 5 throughout this zo: iag usa di::c:cd to chs freq w y o2 l

6' the rata iac:aacus. J.nd t..ey, Udce.i.631y Jave N cn ircquust.

l 7  ;' cat of the. havs sa w tr.2:;J. cos: ralated vaica in t:2a eui:=

8 fac s2 this ,pec:cadi ;,

i I

'h;;; :::Jicnal -anergy cc.iits in the 9l :

10 ;

I utility Mduct:7 ha n ee'ir. la:Us'.y ;Jac al to b bayo.d the

\

11 ;

c ility of & utility's ces'.rol. Ascogni. sing the.t fact 1 i Jr. M ar of 1777, Jd Jey Central had 12 ! pri; to 1377, to t

s a

. 13 ;

ca aut:catic cajart.c. cat clausa Cat chaaioi :cathly. It i 14 !

i was based on a Tarca scath oving avmge which underatud i

tr.c it.c: cases that, occur:22. int z.avartholass, prior to 5 15 !

. t

16 l t

Sept.dr of 1977, a= had 12 mzw related rato inermun 17 ' a y*ar.

18 19 20 oL m

==

23 l

24 : I .

, 1 i

25 j I I

i i

L _ _ _.

Centiau-diract 12 7 1 A (Ccntinuing) 31 ace :nos:cidsat .soveral of the 2 spenhars noted tnat we have had quita a nurter of rmte is- i l  ;

3l i creaues and juse caecking now, w2 have had five incroaces ,

l 4 aince taa Three Mile Island accidant. Nt's not including 5 tae January increase that was Granted prior to the accident.

6 Ecwever, of those, two would have 7 occurred in any event as this oss under the proviaicas of 8 the leveli:nd clause that has been approved.  ::t is a featurs 9 of the tarif f th.sh Jersey Centrs1's clauca csarge is revised 10 routinely every six mcstss.

[ 11 30 sot all of this is nomstning that has 12 , occurred as a result of the accident, but has occurrad beesuas a

13 of our rata increases and because of our rate pr

ccedisgs i 14 that would have cccurred in any svant.

5 15 l And to put the 'three Mile Island situatica i .

I I 16 l 1s =cra parapective, we have been granted over that tinefraza4 t

i 27 nacely, since the accident throughMay of 19GO when the last l

18 increase was swarded, the GO 31111cc interi= increase, we i

19 have been grantad a total of 233 million of additional 20 revenues on an annuali=ed basis.

21 of that a=ount, 214 nillien or 73 per--

22 cent is unrelated to the Three Ptile Island accident, but is 23 instead involved with increases basically due to the doubling 24 of oil prices that have occurred over this tinsframe, i

i 25 l Unfortunately, the Oyster creaic outage

!  ! l t

l

E Genticu-uirset 129 1 is a large slen.2nt of thia . T..oro aro =her f:ctors involved, 2 but I cita these figuras 2Lnply to try to put t.no accidant 3 in perspectiva. It has acesuntad, "res tne total that va 4 have racolved, it has accoucted for 27 porcont.

5 I beyan, I think, by noting that we ars 6 cor.ctittad to dcal with the compalinta that wers ralued this 7 =craing, and it just occurrec.to =s that we did onit ena that 8 vs viev v sry soricusly.

9 Thora wars a nucher of complaints that 10 J rsey Central or.ployaea are ruda to the pusli=. 'Je are goiny I

11 to Ic A into that because we feel that this is niso vary.

4 12 serious, and it's capecially serious in our situstion being 42 3

13 bad as it is. This is socetning that cdviously ws csn't

)

j 14 afford and we ars co=nitted to look at that as well.

s i 15 And, I havo notad, in the casa of the 3

E 16 cator reading incident, that the result of that was that the 17 employoo was firsd. P.nd I am sura if we find a centinuing l

18 pattern of rudeness to ratepayers and to the public Enat 19 that situation will be dealt with in the sa = way.

20 I think that vould concludo generally my l 21 rs= arks in rasponse to the activitian this corning. And, I l 22 think now, Jack, we would be ready to go into the LEAC pro-23 caeding itself. ,

1 Did you prepars a list of exhibita which wern 24  :

25 distributed prior to today's hearing?

l l

L

1 l

1 1

Gostleu-Jiract 12? !

I a gq3, 2

M2. X:23?Li Jcdge M::: hall, I thisk 3 copias have been nada avallanla to all en-a 4 parties, so it right bo sisizr and quis::er to 5 jcat tick.off the exhibit nw=bers that vers 6

suqqastsd on tais index, and then if I y0cs 7 nas not received ona, we will rat.edy that 8 onlasica, if that's acceptsblo.

9 J C D.I mar.s:L'.M.: Any objection by any 10 of the parties?

11 213, 5AuRADiIK: Mc objaction.

2 12 2 You proparad an indes of tnOsa ashibits, did ycn a

3

13 sot?

! 14 A Yes, thase repr:tment matarial that has been a

15 siabeitted prior to today's hearing. Aac, in fact, all of f:

16 tha parties were sent taic catorial by axpecos mail and 17 should havn it. Thea4cxhibits ranulted basically from i

18 raspcases to data msquests that we raceived at discovary root-19 ings held at GPU on July 24th and 29th and 7cqust 11':h.

20 We nave extra copies wita us of all of those exhibits, if 21 needad. -

22 MR. KIRSTE22: The 2cportar will naed 23 some.

24 0 Do you have any commnts about thane exhibits 25 l which were distributsd earlier?

I i

I Gon iac-lirect 130 I!!

A NC*

2 'J Tho naat exhibit that is availmio in JC-G.

3 I3 tudt C3 :"Ct' 'ir '

22 1007 4 A 'l@a.

W!!;t 5 'i- Jill you pleana describe /that is?

Is At oso of our discovery .~.retings tha parties 6

7 nad indicat.ed vith reapsct to T:tI-l sinply that they would 8 like to nava a prepared written status review of the unit.

9 They did not enviolon that the TMI-l I

41tution vculd really becom.e an icsue in the procne.!ing or 10 s

tnat a forsar witnaas would 50 required on the subject of 73 12

• ~I*

i  !

hat was pndcaW m OS aN#M I

13 l thac the docu2sant we would provida would have a cc=prehensive f 14 i

1. 8 "" * * * * "* *

• 5 15 I " " **Y

!  ! Therefora, this exhibit rssponds to tnac E

16 l and la broken down into two parts, Part I reviews the is 18 "U" # '#I * * * "

• As you know, t a :IEC has instituted a 19 ng, inv s sa e np ex premo n. ves haa m gs, 20 21 I tervenors and a number of issues both of a technical nature and in =any inatsacas ratters f ar broader than physical

nodification to the unit. For example, the psychological g

struss that is involved because of the acci:*.ent surrounding 25 i

en tio u-41 roe 131-1 i:da axhibit r.aviaws the regulatory 2

Atstws , and t::= second Part of the exnibit loc:cs at the 3

/urst/ technical and procadural codifications that thm : sac 4  !

ud cursolves have com:aitted to parform prior to ths unit's 5

roturn to service. .

6 .

7 8

9 10

. I1 3 -

12 8

4 13 I

14 i

d 15 e

ii 16 17 18 19 20 21

! 22 23 .

24 l 25 L

i 4.; 1, cartim - 21:34t 132 (Continzing) I think rath:ar t!un have me try 1 A 2'

i to dizenss tha azhibit here, the best way to do it would bs to allow you the ti=c to r#:risw it yourself. If you have 3

f orther questicas, I don'h halieve that I as the appropriate 4  !

5 witnaca co hn=dic the technics 1 aspects of this but we can .

certal:1y gst the ansvers to those questions. S e and re-6, 7

sult I think for the pur :osas of t,he LEA 0 procaeding are 8 that the ruturn dacc that we hava ascu=ed which in July 1, W e forecast upon 9 1301 might - let me back up a bit.

10 which our LCAC increase request is based is the 12 months i i

~ c= dad August of 197!1. It's a prospective forecast pericd il 12 in accordLnce with the terms of the tariff.

!. G e THI-l return date assumptica of

. 13 l

! 14 My 1 tsarefore puts 7.C in service for two xonths of the so-called LEA 0 period. Sut, as you have discovered or as d 15 l I I

! 16 l ycu will discover whea you roview the exhibit, tha July 1 l

17 l data is optimistic and a sore likely data is September of l

LI:AC period. The 18 1931 which would take TMI-1 out of ths 19 effect of that, of ccurse, is to increase energy costa he-20  !

cause h costs of M generation is on the cr h r of thrae to four sils, a mil being a tenth of a cent, whereas the 21 alternative repisco=ent runs anywhere from 30, 40 or 30 m, a mini =un o a 10 to 12 fold difference.

23 Q Mr. Centieu, just for the purposes of iden-g ica , a es s wr.ich w e mar W under yoursa u 25 ,

i i

i i

~

1 2 Oxntice - dinct 103 l

i b,,y, cr, rafarred to/yoit in the index as JC-A through JC-A5 and l 1l I

2; JC-3, JC-C and JC-D warn all exhibits which were prepared i 4 l

3l *ay i'm or untior your cumisios, is tMt correct?

7 fha *:'s corroct.

4 5

m. mmi 21r. Contieu in available for cms- eartination.

6l i A .c C C !!A!tS E E l.: Off the rtccrd for a o

8 2"*At*

9 Dihareupon, there was an off the i

10 re e rd dise m ion.)

i atGO MARSn?JJ.s Back on the record.

. 11 1

12 At this point, if I have not,dcne so of=

2 ficially, I vill .r.rk the list of exhibits 13

! 14 l contained on the incam sheet which im JC-A i I i *krough JC-F, and also sark the exhibit just 15 i

!- oresented as JC-G.

16 :

i 2C. T.IMTEN Thank you, sir.

g 18 N ** " I 19 ;

" ' ~' "

20 Petitica) vac marked JC-A for identification.)

21 Ufhoreupon, the docc=cnt entitled 22 Energy Cast Cc=parisen, Actual vs. Forecast

! Znergy Costs, April-June 1930 (superceded by 24 !

r.xhibit JC-A.1(a) was =arked JC-A.1 for idan !

25 tification,)

i

134 43, G!aticu - Sirect (W.ereupen, tha doc:= ant entitisd 1

2 2ncrgy Cost Cenparison, Actusi varsus 7ern-3 C30t h Z' coats, n;ril-July 1900, was marked 4

JC-A.1(a) for identification.)

5 t h esupon, the accunent entitled P r.

6

?.unnin:J ltatas 2:tinated fo:- ths LOAO 7tried, 2: sed on ?JM Study Datsd 7/2:/?D 'fas marked 7

8 J0-A.2 for identification.)

(hrwpen, the occusent entitled 011 9.

Cost assapdons of N P.m Wanios MM on 10 e ser.ple of Typical ?JM cil-Fired Units was 11 12

"# U*d 0C~^*253) IUT if*Etif1C* tic"'I

! (Whe m pos, tha d e t entitled LEAC ,

$ 13 7eriM Cil Costa by Type and sulfur Contentt f

o 14 l i ^* ***1 ** #8"" # "#*#* *

• O" ' "#i'*"

• Oil 15

! Costs, April-C:na 19?0 was marked JC-A,3 for

! 16 identification.)

I.s (whereupon, the doctment entitled oil 18 C st Ceeparisen, Actual versus Ferecast Cast 79 of oil Purchases by yuel Type and Sulfur 20 Content, april-July 1930 vss na=hed JC-A.3(a) 21 for identification.)

22 Othereupos, the docu:rsat entitled 011 23 Cost Cc:rparisen, Actual versus Forecast Cost 24

~

of oil as sur nd by ruel *ype and sulfur 25 4

i

cc:tir - *1 tct 135 43 4 ,

t I' ** sn:: ant, April-July 1030 was s w.ad JC-A.3(b) i

' 'or identificatica.)

3 G:norcupon, Jocu ent entitiad Actual l

4i nad Projected Conc of 011 Purchases by ruel 5 Type and Sallur Ccatant," fear lie 0 by Mosths 6 markad JC-A.3 '.:) for identification.)

7l (hraupca, ti.a document antitlad, Gas 8l ,

Costa and Cuantitica Toracast far the lY.AC 9, Psriod (Ocfore Adjust:ents) zarked JC-A.4 i

i 10 i for idostification.)

I

$ 11 .

(3.'.araupon, documesc 4ntitiad Deriva=

}

12 ; tion of Adjur m t3 to Gas Coats and Quan-

!- i 4 13 :

I titiaa Yorecast for the L?.AC Period :sarked

= t

.t t i 14 i JC-A. 4 (a) for identification.)

i \

i is l Panaraupon, doc:===t entitled cas

= ,

I 16 i Cost CompariJon, Actual versun Torocaat Coat

. sad Quantities of Caz unrned, Apri1=-June 17 ,

i 18 1930 marked JC-A.4 (b) for idancification.)

19 (mroupon, document entitled Gas Cost 20 Comparison, Actual Versua Forecast Cost and Cuantities of Cas surnad, July 1930 and 4 21 lionths April-July 1350 =arked JC-A.4 (c) for 23 identification.)

(Whereupon, docu= cat entitled Gas 24 : .

25 Costs and Wandtlas Forecast for da W l

l

contieu - dirnet 135 i

gl Mrind as Mjusted; Estinated ::nergy Cost i

Sa ngs Associated with Cas Adjust asts by 2l i Months and Generati.g Staticas was =arkad 3I i i Jc-A. 4 (d) for identification.)

4!

t

. mw. , c a t en M od M va-5 6

tm f neef se nodudons MsociaW wPJ i

' I 2AC ?nried Cales Adjust: ents uns marknd

.,e I 8

JC-A.5 for identification.)

9, Othersupon, document entitisd Deriva=

1 10 4 i

11 '

I i ?ntition) una rarhed JC-a for identification.)

=

gj DO.croupon, doctr. ant entitled Chargss l

i l

" * *# "'~* Y ^

13

. I i *:ffcce versus Proposed Increaser Rato Cos: pari =

14 ll i

) la, ! sons, Jer==y Contral veraus tioighboring

- t s I

!-  ! Utilities (filed with Pctition) was marked 16 ,i t

JC-C for idontification.)

17 l

! (Traorcupes, dccument entitics Revision 18 l to ?.=hibit JC-C to correct 2rror A.2fecting 19 i I

l Ceterminaticn of C*rerall 7trcent Incesase 20 i in Charges to Custoners if L::.E Incrsano were 21 Graated in Full was markod JO-C.1 for iden-22 tification.)

23 !

Olhorcupon, document entitled Projected 24 Doferrm1 Energy Cest Salances, with and Mith-I I

I

I f

Coatian - diract 137 19 6 ,

1 Out Roquantad LOAC != crease ,(filed with Pati-1 2l i

tion) Onrhad JC=D for idantification.) 2

' l.

3 Piharsupon, docur. ant ant.itlod actual l l

4 versun 7eracaat Oaferred C orgy Cost 3alance, 5 July 1930 uns narhed JC-D.1 for identification.)

6 Or tarnuyon, daannsat antit1M Bales i

and custe=o:s by 7220 Classes, and P.esidantial 7l 8 Use per ca.itor.or, Ynsrs 1930 and 1331 hy 9l Months was narhed JC-C for identification.)

10 Diharoupon, docu= oat entitlod Oil Sup-plis 5, Delivery Lccations, Contract Terms

$ 11 -

i and Gunatities, Tor cast Motboda was marXud 12 i

I

$ 13 JC-P for identifiestian.) l t

a .

I UThe

cepen, the exhibit entitisd Jersey f

"! 14 f  !

3 .

t Contral ?cwer and Light Co=pany, NJ3PU Dcchet 5 15 i

I 3 '

i 16

30. 307-433, LIAC Incrosse Roquest filed 17 7/21/30 vca marhed JC-C for identification.)

18

19 ! ,

l l 20 i i

21 l

22 23 24 i 25 l

l.

Jrigat-diroct 13U 1

h 3 . ;;I ' C 'I Z n : Pay I mil my unt 'sitness ,

i 2l lour :iccor.

l 3'

JUDc2 NAtuu?J.L: Y o u = s y , n r . I:1rstan.

4

G. MESEN: Mr. Bright.

5 :t a. It I C I4 A :t 0 C. 3 a I G .1 T , avern on behalf of 6

Pstitionar.

j 7 oranc; cxpegg,4xfron 8

3Y MR. U:%T13:

9 0

uculd you state your pcsition with Jersey 10

- Cactral Power & Light Ccepany suc rienarai ?ublic Ut111 tina.

11 A Yos, I's canar;nr of pwer Supply in GVe cervice ,

. 12 3

Cor;cration and tac power supply diviaica in responsible for

13 the intercouns= tion arrange ants and the power supply cen-14

- l tracts for the CPC system including Jersey Central.

15 I i

O So to put it in laymen's terms, yos aru in

~

16 charge of the negotiation and the obtaining of cpportunities s

17 for purchaadd pcwor?

18 A Yes.

19 Q And would you tell un the status of the purchazg 20 power arrangementa that are presently in axister.cs with the 21 Cocpany now, if you can su=mari=e that?

22 A Yes. There ars currently four major suppliers 23 supplying purchased power to the CPU system and to Jerse.v 24 Cen tral .

I 25 In searching for power suppliers with i

I l

t

erLght-dLract 133 1 tn.a loss of ;NI- vo uuarcnad basically to the aorth s=d to tn.s 2l west of the PJ:4 cyston uscaace those vara the arsaa that had 3 zoarcsa of pc<or, coal-fired or hydro-fired pcvar.

4 Further to the south there wera shortages 5 of anorsy, down la ths Virginia 31ectric Power company systen 6, and alcag the east coast where ovw/ thing is prsdominantly 7 oil-fired.

8 Car basic search was then to the west and 9 to the wast of us was the Allosheny Pover System and through 10 it to aystens interconnectsd to it west, out in the American i

~

11 Elactric Power Gystem sad dcun into tvA. Tnis has boea the

! l 12 =ajor sourcu of energy at a cost lower than that ebrainable i

13 witain PJ:t under tne econcey inturchange or split of scvings fs 14 ccacept,

$ 15 In addition, we saarched to the north, i

E 16 an.1 to the north was the New York Power Pool. In ganaral, I

17 ' the New York Power Pool had relatively little baaa load 18 coal-fired gonoration available. Dut, availaula through the 19 New York Pcwer Pool, specifically through aiagara Mohawl 20 Corporation, we were able to catain power from Canada, frca 21 ontario ilydro, a provincial corporation of the province of 22 ontario.

23 In additiga, we obtained coal-fired 24 energy from the City of Jareestown, New York, who, since their 25 load requirosents wereteing supplied by PASNY, had identical

, Sright-direct 140 1 cc.tl.-fired generatien ainilaslo. It was 3 minimal 40 mga-2 wacta, cut 40 naq24atts of coal-fired gnneration is an impor-3 tant savings to OP".

4 In addition to these outsics sources, j 5 we negotistad with rensaylvania Power s Light Congency, one 6 of the >J.1 meebor companias,for the purenaso of 200 megawatts 7 ot ,tartin's crack oil-firsd generation.

l 8 now, tnia oil-firad gan aracion was 9 attractive occausa it was solo to us at cost by PP&L and is 10 1:wur than cur alternativas during the daily on-paak periods.

11 In summary, these ars our existing

, 12 c;uratiaq purchase: powwr agrsexents. Any dif f erenca be tunes 13 lead, our own internal q=caration and these parenamed power

)

! 14 agroosents is cada up froa scenemy intarchange bought through a

d 15 the /J:1 incarconnection currently en the split savings basis.

16 Q Thors was a reference to an arrange =ent with 17 Philadalphia Elactric with respect to Salem J made previously, 18 :iould you tell us the status of .that i

19 arrangesent?

20 A Tes. No have a nucher of arrangarwnts that we 21 ars actively pursuing. Cue of these'which has been completsly 22 negotiated and is currently before ths Federal EnerrJy Regu~

23 latory Cornission is this ?!, the Philadelphia uloctric 24 Ccepany - Jarmey Central purchase.

25 The agreement says that when the 3alem-2 l

irignt-direct 141 nsclear unit goes in sarvica, 2 cuning apprcxicataly 42 1l l

2; percent of it, thac PC will sail to Jersey Central sa scour.:

utput of Osisc-2 3 i Of Caiacity a.ic caargy aquivaloat to tie 1

I 4

' at a coat whien is 95 porcent of tne ?JM running esta.

5j Q Is taere any indication as to when tast Salem-2 i

6 enargy might be availablo?

• 7l i

A 'las, the current prejucticss of 7biladdiphis 8

riectric are that test gensratica is Jchailulad to start in 9

Cctober with ecznercial generation targeted for January, 10 ,

1331'

. 11 i l,

. 12 ;

3 3 l 4

e 13 l ,

14 i i

5 15 I 16 ,

17 18 19 20 ;

21 22 23 .

i 24 l

25 i l 1

!, I

d rign t-dir act 1 12.

1 'J Choro has toen s quoutico raised as to wh.it 2

othar offorts are aci=y nada by Jersay Conersi to neq:tiats 3

i additional .aover purensa as ,

l 4!

i Jill you tall uu first, can Jaracy Cecerni 5 economically utili=4 additional pcwor purchases?

6 A Jersey Central enn utiliza additional pcwer i

7

! purensees daring sono houra of tuo day, mainly during the 8 peak. load hours of the day. Thnre ar$2 tinin when GJU and 9

Jorsey Central as a namber of CPU uill to nelling econoray 10 interchange within the PJ:t agra.went mainly durisq the off i

i 11 peak neurs, during the night time hours, bocsuse tha outaida 12

purchases that GPU and Jersey Contral are zaking are base 4 13 i load snargy and are esecutially cusilablo 24 hours2.777778e-4 days <br />0.00667 hours <br />3.968254e-5 weeks <br />9.132e-6 months <br /> a day.

14 And, because of the daily losd shape of CPU and Jersey 5 15 Contral, there tands to be noniasi aucunts of excesa energy 16 availaala at night time and nominal requirsmants of econony 17 interchange during the czy ti::Ht.

l l 18 0 Does that suggest that any additional pcwer l

i 19 purchnaes would only be economical if they are at a Icwor 20 price than you'ra paying for the ones that you have available?

l 21 A Tea. May I make an addition to tne tabulation 22 th*

• I 98V8 **#11**7 l 23 I mention,ed that there were four activs 24 utside purchases. I put those down en my notes because in l 25l, tuo last LtAC filing tavse wars the four tnat vers prosented t

O 1

~

! ariqat liroct i

' 343 1J to taa Co. nissica and taeso vers tas enes currsatly activa.

2l Sinca that time thers ara two othars i

3 that a:2ve unea negotiated and are presently currently active.

I 4j tacce ars en agroenent with Cleveland Electric Illuminating i

5: Co=pany, COI, which vaa instituted in !!srch of 1990.

6 Iffectively. it entsbliahsa a psrsilal 7 pita to the syncsza to the west of 2JM. A2:d , tast parcilel 8 path now pars 11ola the AP3 system path. So alth=ugs it doesn' t 9 incrassa sourcen of generation availaole to us, it does ;ivs 10 as sar.a tenefita in having scna finxibility in ostablishins j 11 taa whosling arr.assdaents tatsteen the tvs ec.r.panias rather than 2

12 jast che singlo path scat existed beforo.

I

, 13 ! O Are ycu saggesting that this is not su addi-I f

=

14 l tional scurce of pevor, but an additionsi =esna te get the l

15 I sa=a source of pcwer?

e i

16 ;i A Yos. :nare is some nominsi, additional amount 17 of power, but it is very sr.all. A saccad now agree =ent since the last LEA 0 filing was an a;ransant or is an ag secent that t

18l' 19 j we cur:ently havs with Central acJsen which is to the certh l

l 20 cf Jersey Central. And, this is for ccal-firsd -- I's sorry, 21 for cil-fired anargy whica is steam oil fired energy and 2'i , which is excess to Cantral !!udsen and wh.ich they c.aks avail-23 able at a cost of fuel plus 3 mila per kilevatt heur. This 24 3 all :.arkup is certainly far Issa than the order of e.agni-i 25 tude of the 14 or 15 =11 =arkup that ws sea en the PJM l

l

3 i

i

Jrigat-direct ;44 1

1! apiit of aavings cencept. And, t at tends to make this

\

i 1

l .

2l l sttractiva snorgy during the daily on-; oak perioda. l 3 y In the last procseding, ycts referred to the 4 fact that cas of the limitationa on the power rscalved fron l

i 5 catario liydro v.ss the trassniasica espsbility of Miagara 6, Acnauk.

7! Is that still a problen7 i

8l A Yos. Ocring the last LEAC we had the catario 9l i dydro conmite.ont available to us slecut 100 percoat of tas i

10 ! tir.a so the trannaission linitatica didn't appear so exist.  ;

I h

11 Just recently, over tha current suazor t i l 12 ll pericd, there asve swan apprcxinstely four times that Niagara  !

! I I

$ as the transmitting party has had to suspend the service to 13}i I

!. 14 l us tacause of trsssmissica linitaticas on tne Niagara P.chawk 3

i 5 15 systau.  ;

3 i 16 JUDGE MA 33ALL: Let's go of f the record i

17 for a seccad.

18 (Whereupon, there was p.n off the record 19 l discussion.)

20 JUDG3 MAR:11!ALL:  : Jack cn the record.

21 O Has there been a reduction in the ceount of 22 y wer availasle from catario sydro because of thase restric-23 ti na en transmissica through ,the Niagara nchawk systam?

,4 l A Yes, thers has been.

~

t i

25 l Q In what amount?

i

urigh -direct 145 l l

i 1 'A t iell, tao supply trem Oscario aydro to CPU is 2l .!O3 segawatta. This entira 200 uoyawatts haa hewn intarruptsd. .

3 .Jor ally this laterruptics has been occurrisq during the day I i 4l tir.s hours when CPU and Jersey Central have t;te gr'satost seod, i

}

5 anct also when the grantest ben nfit of this prar supply t i

6 accr=ma. l l

7 l

8 1 1

9 10 1

~

11 12 i

3

, 13 I 14 i

d 13

?.

2 16 1

17 .

18 19 l 20 21 22 23 .

24 25

r 19 1 3rignt-dirart 144 1 A (Contin uing) 0:3 of the reacona that we had 2 n. sun ncJotiating 41th tas PJM cenpanian for a ruvision to 3 the aplit of savings concept of the ocenocy intarchange tranu-4 acticas was that in the avnst we loat accs of thena short-t. ors 5 power purchases that we currently nava, that we would have an 6 ludurance policy with respect to intsrruption.

7 For instance, with sna interruption of 8 the Ontario nydro purenaan, we hav2 to mako up that differsn-9 tial frem thm ?J:: interconnection under the ocenomy inter-10 change provisions.

t

$ 11 And, we have been actively purccing cinca I

• l 12 June of 1973 an attempt to get ?JM and the regulatory agencima a

3

13 that the PJM cc=panima report to, to accept sor.athing other e

l 14 than split of savings for the sales that 7JI makes to the a

$ 15 GPU companies due to the loss of OMI.

3 i 16 0 Dow, you referrsd to the split a.avinga arranga-17 =an t. Has the cost plus ten agreer.ont seen fically executad?

18 .1 P.ight now it la very close to irplementation.

19 The current status is that it van filad 20 with the Federal SnerJy Regulatory Cossission in March. Thors 21 was a settlecent negotiation which arrived at a settlanant 22 agreenant durine the end of July. inis settle:wnt agrwetent 23 was presented to ths FSAC Craniner in early August. Commen ts 24 and reply coecents have all been put in as of August Inth 25 wnich was une final cate, I think. The Judga Advocato is

7u3l Sri.5tt-dirac. 143 i

1 inzuranco policy for :91attinly Icw coa t eniarg'f ce= pared to 2 norr.a1 aplit of savings cusrgy andar conditions vusrs the CPU 3 cc.e,.a=aca are precluced fr:= auying tao sa outsids purchass 4 ;cuer a;raecent proviaicaa suca as the Ont rio Sydro exarple 5 and the AP3 and tae CZ: who not alwaya navo ganurating 6 capacity av311a31.a to provide this to GPU.

7 3 . Lose arrans;econta are generally callad 1

8' 2hert-ter: pcwer arrangetants which ars 2 vaek by week reser-9 vation. .ind if the supplying c mpany doesn't hevo generation 10 aufficient to provide tnis norsico, it just docan't exist for I

'. 11 us. -

12 ' .T nd , tais is wnca the apscial prevision '

8 13 of the 2J:t agreement would be beccficini to CPU and Jarsay E

i 14 contral.

i 5 15

l 16 17 18 l

19 20 21 22 l 23 -

I, 24 l l  !

25 l

l t

72 9 Brigh t-dire ct 147 1 suppos4J to refer to the Conmission for approval yet tnis 2 con th , cad ws aro hoping sad 4ncluips ting that it '**111 he 3j sparevod so snat it can 'ascero affective in Capterbor of 4 chis year.

5 u Hill you explain what tuo tsras of that arrange-6 unt are, if they arm approved by FIEC7 7 A res. Ia ganarsi, aa I :.entioned, split cf 8 savings in solling energy with a ma:Anp conding to approxi-9 reste the orcar of =aynituda of 15 mila por kilcuatt hour over and ioeve taa supplier's cost.

10 l

! l 11 I The sattlusant agrvmsant agrass 't o nell .

12 this enaryy at cost plus a carkup of 13 percant. This 13

13 percent markup is estimatad to approxinata 4 to 5 mila. So, a

i 14 there wculd appear to be approxinatoly a 10 mil savings par a

5 15 kilowatt hour in going from split of savings to tha settle-16 nent agree:ent provisions.

17 0 Ohat savings would caly affect purchases on 18 PJM7 It would not affect these sever purchaces outsida PJM 19 which you just described?

20 A That's correct.

21 2 Is it f air to say that the wors cutoice pcwer 22 purchases you have, the lass beneficial the new PJit purchase 23 strangement is?

24 A That's correct. The PJM special prevision, 25 that it has come to de called, in offset, tends to be an

I 1 ,

3 ight - *ir . ct 149 ji o *tould yc 1 ull us what the status of your ef-2l fcrts are in raspect to any additional power purchases?

^ * "" ##"

• 3

)

4 ing for ,uy other econonient available sources of genern- .

5 tion to us. The purchase power agreemants that ws currently  ;

I have in effect are essnatially providing GPU's and Jersey 6l i Cantral's energy raquirocon u . Tho valusos that we ars 7l 8

currently tahing frca p.TM under the split cavings and hope-9 fully starting in Coptnsber under tha cost plus 13 percent 10 provisions are relatively nc=1ss1. '"horo ha ns been rionths t

during this nuetter whara the G73 synten has been a not 33 l

! l Even though it boys soma anarr on peak, it 12 ' sollar to FJM.

~

! In

$ 13 was selling Mrc enn:-;y during the off-peak periods.

the Fall and in winter, ss the winter penhing systens, coal f.

a 14 d 15 ,

fired systens to our west generally have greatar .w ire-ment neans for generation to = cot their evn load, our sup-16 17 plies fren t.% w st can be rod e d as 6 7 bd been reducM 1 in the Fall and winter. of last year.

18 This is when the 7JM special provisica 19 of 20 mld h Dar m3 n lue to u Wien our W f_w m ,

g has been down.

,, O I neglocted to ask you, Mr. Bright, what is 23 agroecent with PJ11 purchases?

I

> A n e provisions of the cost plus 10 prevision 25 j I

l l

M Dright - direct 150 1i says that it expirca in ::acenber 31, 1931 or wh.n T.MI-1 r2-t 2l turns to service, vnicnaver cones first.

3 I si;o limits th assunt of energy 4l that tua G20 systa= companics .sy taka fre s P J:!, to that l l

5 which is represented an the portion of TMI oncrgy that was -

6 1 cat that woulci do expect.sd to be provicad by tha PJ't ec=-

I 7l pa..les. of the T:11 onargy that wsn icat a Iqc portion of I

8i it would come from PJa.

l 9! ton additional portion would be provided I

10 i by increasic.g Jersey Castral's and CPU's own generation and

l

$ 11 I a reWMng portion wou?d h reduction in salas that the I

12 i CPU cor.rpanies would have madu to ?J:1. Jo that the 7JX 4

13 l special purcnasa provision only aru for thesa salaa that l

!. PJM was forecast to make to the GPU cccpanima and those

14 l ,

5 15 mies are reduced by a factor depvading on what J4rsey Can-16 tral's outside purchases under the special purchase agree-17 j ment night bo.,

.18l l Q Now, there have been suggesticas raiaad this I

19 j morning about the utilization of dolid wasta, fill, garbage, i

20 I what-have-you, for the purpose as a fw l for generating i

i 21 Power. Have you been involved on b half of Jersey Central and GPU in exploring that avenue as a source of pcwer?

33 l 23 A Yes, I have, and tnat is only one of the avenues I think that the G7U companies have lookod into as 24 ,

i alternative sources of generation. I th M this is one 25 l .

t 1

1 131 1

, crient - airect i

[ inn

nce of a larr er grout:, an 1 injbc I can quier.ly defino i,

the larger group as acing ena, icsking to otnar acilitics i

2li "C3U* * *" 00' tid"i"9 U33i'

• 0 8"*

ViOi^ # '85 3l i l

wnether timre are acenomic soaras of encrcy svailable, and 4

o as an er. ample of thin, we hava locked within the P.nt cc -

6 P#"I'28 '<ith Public hrvice, with Philadelphia Olectric, with 7

Foaatsylvania Power .inu *.i;nt Oc9anf, with Ony of tha otac 3

?.Jr. cc:ranius th.2: :alght have c:: cess ar,ar;y that might he 9.

availablo en something other than 4 aplit of savings basis.

I i

i In scr.o of thene instances there is the 10 g

p ossibility of senn purchaue power nyrocront within PJM I

i that could be advantageoun to G?C and Jerecy Central.

I,

's

• In addition, we :: ave leckod at indus-

=

13 l ,

3 14 I trial generation that =ight be available. Industrial custc~

8 4

l i mern in cany instances have their o'.sn generation. Cne auch

- 15

• 16 in::ance which we have under evaluation is an industrial cotals corporatien in Pitt burgh that "uocau:e they shut down l e g

thair ectals work have coal-firnd ccncration availaulu.

Cho problema involved in chia are certainly negotiating with 39 l

l l

t

'O I

coal-fired generation and the transmission prohloms involved h

in getting in hera and comparing that with car other altarna-tives to =oe if it is advisablu over a long range period.

23 24 l

l 25 i i i

I I

i

1 Jri;n t-Jira ct 132

{

1 A (continuing) In sddition,vhy, en have aggrssolvaly I 9

2l pursuec co-yeaeration proj ects .

l 3 Jursoy Contral has one of the oldcot and l

prohssly  :.odal co -generation project in its agreement be-4l l

twoca Jarsay contral Pcwr & Lignt Ceng.sny, ::lizamethte n 5l i

6 Gas Co=pany nad ategel Products Corporation. This co-gonors- l 7 tion project was ecenc:sically ovslustad bach in '47 '43, 8 was ir.plcroated in 1975 and vorhed to all three cor.panios 9 bonsfit at tast tics. ,

10 i its have, in coajunctics wi-h the PUC's  ;

I I

~

11 I casires and tneir incontivea, icoked at all of car najor 12 industrial custocars that havs generation and have had that t

3 y 13 l undur an ongoing avaluation.

= r J

! 14 There are still projects thars that ara i

5 15 in various stages of cagotiation.

i 16 Gatting to tha refuse situaticn, in 1373 17 and 1974, we did have a detailed evsluntion with Uheelbrator-18 Pryo for a major solid wasts incinoratica project down in 19 the area of Souta Amboy. This project was to consu=a about 20 4,000 tons a day of solid refuse and product shcut 100 21 289awatts of bare load generation.

22 To put thin 100 negawatta in a proper 23 context, thcro is about, as I ramenbar the numbers, approxi-24 mately 17,000 tons of solid refuse produced in the Stata of 25 l New Jersey daily, 30, this projec itself would censuns a

i

ari:Jh t-cir. set 152-I approx 1 stely a quartar of that or mayta a little losa.

2 This iaods to a conclusion that if you surned all the solid 3 rofuas in the .S tato of .1ow Jersey, you might generata between 4 four and fivo ncadro.1 megawatts of electric snerrJy which is 5 apprcxinataly one-half of the output of one nuclos: unit.

6 30, those peopio '.the proposed that solid 7 rafuas incineratica can olininsta all the requiromants for 8 cil or olininats nuclear have to look nt it in the proper 9 courext tnat solid refuse is a viable site rnativo , it can 10 naka a iajor centribution, but it c,snnot solve the electric 11 energy procle=s of the d ats of .Muw Jersey or the nation.

12 Ohars was a ccament on the use of 13 Sunker C. 3unker c, to my knowledge, is Number 5 oil, and

! 14 we are currently burning Number 6 oil in all of our steam-i

$ 15 fired generating staticas.

3 i 16 At one point in tiro, and this was 3 i 17 to 4 years ago, at least, we evaluated the burning cf waste l

18 oil tnat was generated in the State of New Jersey by the 19 motor oil drained out of crank cases of all of the cars in 20 the state, the waste oil from all of the industrial corpora-21 i ticas in tne state, and we talked with the collectors of 22 this to see whether thers was any economic benefit of burning l 23 this waste oil to produce electricity. The result was it 24 was not; one of the rossens being that those waste oils have 25 tr:mendous nunborn of i=purition, lead, vanadium, which cannot be used in the normal production in the boilers th.at the l

1

a J ri';h t-direct 134 I ! averago els.ctri: utility haa .

i 2 These. certainly could be rrifined out, 3 out by cas si:4 tasy ware refined out, tao cil wculd be mora 4 costly than the current ::c=cer 5 011 ve had haan burning.

I 5i i They also said this oil had a higher 6 and better use becauso this waa tne oil that was used to i

7 produce sophalt or to be put on roads to keep tha Just down.

8 so, vs have locked into alrest every 9l conceivable energy sourca that we can think of. 3 centinus 10 to 1cok at theae, and it's our beltof that we have just 11 acout covered every reasonable alternative that we can

'S 12 l thina of to produce electricitf at a lower cost than *de aro 13 currently producing it at.

i

14 l MR. II23r:N Tuanh you, sir. ir.

3 15 tright is available for crosa eacnination.

!. l,

16 l JULOC tiar.EM.La Oo the parties with l

1 17 to begin with the cross eaaminatics of Mr.

18 Dright?

19 Ma. MA.13La Yes, va do, Judge Marshall.

20 21 22 23 ,

24 25 ,

l,

la 1 3right - creen  ;

1.55 g CCOG3 Z1T!!IMA"!C:1 3Y i:C1, .WUCCLa 2i .

3 Q Q . m ic 12 pend Sakul, and I an wid the 4

7tQlic .T avcca t 2 ' .i Cffico.

5 *11th respect to the purchases from on-1M10 'I7'im of 200 ::cgawatta, he 2a figure of 200 mega--

6l  !

vat:s initially arrivol 2t? Couldn't you have bought enore e lI 1

22n 200?

8l 9l A "hi.1 was the cazieu:u .imou .t that Niagara Mo=

i 10

1. 1. # U #U ""I

• 2' O * "- *

, i

! I cvor tauir facilitida. Catario ny:*.ro has Mcrs tuas a

. 11 3

t susand c4gswatts availabic and the problea is that there 12 i

13 l 10 a transmission limita i n that suists and majer trans-j.

gl i nission re-enforce.eent would have to be done by Oferw York

utilities in orfor to gr.t rcro.

- 15 ,i i

O so casentially tha : over in there but at the 16 4 I

present time thers is no tray of t cas.norting it down to l., l e

Jernoy?

18lI

! A That's right.

l 19 i I

i  ! Q And I taXs it that the project thva w have l

l 20 l i i boon hearing ahout of building n connec*4 7 cable froni 21 i l PJP, under Laka Eria to tho Province of Ontario, that is 22 l l intended to correct this situation?

23 .

l A Tas, that's exactly right.

24 l 0 Could you bring us up to date as to esactly 25l.  !

I l i i

,a 2 3richt - := c3 156 )

l l waare ea mesociaunna acnna 3.evean cer=y cont =az, c:m 2.w ,

i, t

2, I the Catario IIydro pe.opla at this ti:ne?

l 3l A Yes, sir. na high voltage uc pro-)cct, as it l

might be called ta diffarnatiate from the current Ontario 4j 5 Uydro purchase, is in ce final stages of assotiation. All 6 of the nafor alament: have basically been :ssolved, ne l

7 questions that ra:aain are basically socio-political in nature g dealing with Canadian energy export taxas and onvironmental 9 concarus.

10 Q Sy environnental concorr.s, are you talking about p saibla acid raia inpacts in canada?

$ 11 12 A Tas, sir, tnings of that catura and predomi-i

$ 13 "3Dt1Y that*

s 0 Now with res;sct to export taxes, lan 8 t that

! 14 i

f essentially a financial issue as to what the end price of 15

! 16 o

this electricity will 'e?

l A Yes, sir, it can be viewed as a financial or i

17

I economic issue because if the asport taxes is tco great, it 18 l drains away any of the benefits that Jersey Central and 19 catario Hydro wenid have reali=od from the sale of the energy 20 g between thms.

Q Is the magnitudo of that tax so great that

" " I **2 #* * * **

23 l PJM r e ing rato is a conparabia time period?

25 l

ad 3 ,  !:ict - cr: se 157 I vs have had tith tP.:: -:ec71c of Ontario d37 re, to ?Aral i

2 Canadian Covernment, which is t'ic rc7ulatory arm that wacid 3 M E* *'5 2005 3 to:s cot ht  ??0Vi:10231 t'X Cf tM 7 0VinCC 4

of Catsrio, h2e t foterniaul vhat ths tar or rtw if a t3 *1ould exist. m :0 lo a lot of discunsion in Canada, 5

6 .s : underntand it, for as s= pert ts: boe nsa cu_-runtly J

7j tha 7 :dar:1 '*anadian Oc fernnent h;ts ir;cc1J a ta on tha 8 cale '2f cruds oil to tha United "tates sa1 is in effect 1:1-9 posi.ig a tar. on the sala of natur21 yss by pricing naturs1 I" 'asmusily ec.:17 slant to the vorld price.

f 10 I

-  ?.s I recall the au;.3crs on the crude

. 11 :5 1

~

Io- ,

i oil tag, tha crude all tst is davoicpod cuch Cat it is a i set at a prien for Sa crudt oil equivalo..

to tho world 13

= i l:  ! prico. Cao grcup of nunb.sra that I had scan indicated

. 34 l f I t" f ** #* *'8 * ** 8 " # U=E " "'

15

! the tu of aht A a bam1, to tako it eqcivalsnt ts the 16 ! ,

I i

weld price of shout $37 a tarral. "his isfors that the 37

• * * * " F' #

• 18 JtTDC3 18Xtml?J.L Off the record n g9

isuts.

,0 (Whercupon, there was an off the record discussicn.)

22 J00C2 !%25l ELL 3Ack on the record.

23 A (Continuing) If such a ts: were imposed and 24 ,,

it was this order of esgnituda, it's ossy to visualize that l

JH 4 Orip.c - ::oss 153 i

t.% bens?it both to Jersey central cnd catario dydra could .

1 accrue to all the inhabitanta of Canada through the Federal l Goverer.e .t scurping all the ta=efits that existed in tho  ;

s 3 '

project roi ould .do it on U::ecc=onic

- altzenativa both 4

i I for Catario Uidro and for CPU.

5l 1 0 !te. Oright, the tax that you describe was a j 6

I l

ta:: .on oil. ~h1.2 thousand meg.watu of capacity that la  !

7' 14 avaliabio, is it not true that7c~eal-firad capa=1ty and not 3f  !

9j oil-fired espacity?

i i

A S.e enortpf off the Ontario Hydro system over 10 i  ! and above that necessar* to supply entario's Ioad, is con-

. 11 '

12

! sidered to be al: est 1M ::oresnt coal-fired because the s

13 j -

cntario Hydro systen is cenposed reuchly of one-third nu-i i clasr, one-third hydro, ene-third coal with less than two j 14 j z

la,l percent of their <morgy ec=ing f=t:cs oil.

- 4

. t 16 !

l 17 l 18 19 ,

1 20 i

21 22 23 24 l t 25 ' i i

l

j nrigat-crosa 139 l .

1l s Oc you Anow if Canada is prassatly a coal l

2l 33;;occing go,1.ntry?

3 A Canada is a coal importing cenatry. Le t ce 4 co;;oc: that, Ontario Hydro imports the mass of their ocal 5 frco the Unisad S tataa. And, let no qualify that by sayisq 6 that is ry anderstanding.

7 0 Easontially, than, if Gntario Sydro is import-8 ing this coal free th4Cnitod fiestas ccd the coal go ts burned 9 La Janadian generatora and electricity ccess bcek to tha 10 ' united States, this sala would not is say way be depleting i

~

11 Canada's coal rosarves, wo21d it?

12 A t;o, it.4culdn't.

3 j 13 .: Is thars any reason tobelieve the Canadian i

14 governeunt would inpose a tax similar es their crude oil I

f 15 tax that you descridad to disecurage the waste of Canada's i:

16 =stural rssources?

17 A I gumas the belief is only in that prudent 18 management should lock at all ccaceivable altersatives that 19 exis t and cr:13 appears to be a conceivable alternative.

20 It's ry understanding tnat tea westers 21 providences of Canada, that these pcryidences that exitort oil 22 and natural gas, are advocating to the Canadian Federal 23 Covernment the imposition of such a tax.

24 Q on electricity exported unat is derived fren i

25 United States based fuals?

l l

l l- _

i 3rigat-creaa 1J0 1 l A I think that tho discussion is en el*ctricity 2: exported.

I 3  :) Uithout regard to whars the faal caca from?

4 A That I don ' t kncv. Since this agrocrent is 5 t ootween Cntario Hydro and cursnivas, la dealing basically 6

with coal-fired energy, and entario dydro is cencernud, 7

tuera could be an scorgy export ta=. It's our bellaf that 8

tuern is reaaonucle probability it might bo appliod to coal-9 firad energy even tnougs ccal is 1. portad into Canada from 10 the United States.

2 11 0 obviously, in order to rtesolve this question, 8

12 Ontario SyJro and G73/JCPSL von't be ablo to work it cut bi-13

latarally, the Canadian Federal Governcast is 1svolved, so 14 what kind of input have they and in the negotiaticn and what I

j 15 is the prcapect of resolution of this export tax issus?

I 16 A To ny knowledge, the Canadian govern =ent has 17 no input into it. Cartainly, any inpu: they would have would 18 he through Ontario Sydro, and Cn tario Hydro has not inforr.ed of -

1 19 us/5ny input from any Canadian regulatory agency.

l 20 The resolution that la being daveleped 21 is, if there is a tax now, that that ta= would no allocated 22 to tas sale, and we bellave we are close to a determinatien of 23 new we would mutually accept any tax tnat might be imposed 24 l en a sala.

l 25 0 :t ew, this connection line from Nnnsylucia to i

l

r Orivat-cress 151 g -- I emlievo it's frca pannsylvsnia to Untario, tiet proposed 2 ccnna: tion. cast has a capitsi coat amacciated with it, 3 corrisct?

4 A Y tis , sir, it dcas.

5 Q And Jersay Central's share or GPU's share would 6 b's is the ords: of =ngaitude of $273 sillica?

7 A Y2s, sir. The agree = ant says tnat we will 8 anaro en a 50/50 basis the ccst of the undervatar cable, and 9

I the estimated cost would be in the order of magnitudo of 10 5$00 nillion to 6550 nillion or 7275 :1111cn appears to be a rassonc.ble approxicatica of CPU's and Jersey Central's invest-f 73 12 nont.

13 'l Uut E3* financisi attractiveness of making this

! 14 investuent, sasuning at least for Jarsey Central,12 really i I

. basad on what the end prica of electricity is coming out,

- 15 I

E both the cost of the fcc1 and the taxos, overything cesbined, 16 i

I,s is enat not so?

18

• 1. 9' Y ***

Now, let me ask a question here. I as:

19

" * " " * * *

• 8 9*#'### * **# "U*' **#

i 20 l

certainly don't =ind talking acout it, but this hi:3h voltage DC cabla is not anticipated to come into carvice until, at t e earliest, Decensor 31, 1364, and we are looking at 1935 3

from an avsluation viewpoint as the first tima period when

• 9 # * #* * # * ### ## * " * "" I*

25 l t I.

r

, :t;t.c-crcan L52 i

I think just a coc.rie of parting qcastioca en 1l I

ttia area. is it correct thn: 100 percent of tse output of oI i

3i tais cabla would bs dedica:sd to Jorney Central Peuor a 1

4j dtht?

5 A I an act scre that that has ultimately seen 6 datorniaad. It app 4s:s t.iat it would be vury logics 1 for i

7l this to be Jarsay Cintral's project, and if it 13, Jersey i

8 Csatral would be enti lad to all of the assrgy bonalits 9 that W941d Accrde tu it.

10 i

11 12 i

3 4 13 J

!. 14 2

15 l .

~

16 1 17 18 19 l 20 21 22 23 24 25 j l

i

I j

drignt-crcso 163 i

1l a ta far as rignt ace, who is the n4<;ociating i

2 party dith Gntaris ;!ydro? Jersey Cactr21 cr CPU?

3 A G70. Let me carry it just eno atep furtaer 4: i for clarification.

5 In taa timsfraua tnat va aro talking shout 6 for tais high voltage CC interconnectica, tr.e earliost it 7' can ccru in, as I said, is the cogiaalag of 1905 Jy about 8 1931 or 1392 Catario Jydro excesa coal-firad anorgy disappears 9 as far as exports go because it than roquires it to supply its cun load.

10 l t

$ 11 Co, we have approxicately a 7 year 12 i period in unica thia canla has maxie.un benefits to ths 3

a

, 13 parties and uno naxinus bensfit being the.tranacission of a

j 14 icw coat bas 4 loed coal-fired ancrgy from a ccepany that has 5 15 a surplus to a company that has a deficiency, and tne

16 cieficiency aspects are something that saksa it nest reasonablo 17 that Jersey central bs either t sajor or sole participant, l

i 18 6 because in thesa yearn the forecast is that Jersey Central 19 will have the grsatset efficiency within tra CPU system 20 co=pany and would have a requirowmt for major - another 21 major enargy score,,

22 0 Would it be fair to nay that no long as the tax issue and the =agnituda of, the tax rarains unrasolved, 23 f l

it's very, very dif ficult to ascertain whether or not the 34 l 1

25 j capital investeent in this cacia is worth it?

i l

l

e ari;at-croaa 1G4 l

1 A io , I don' t think that is f air to say, and lot 2;  ::o clarify that witi this atn=enent: the lov ccst energy I

3 aonafita that will secru s arts ona of the tsjer monafits.

4 The other najor benefit that will accrua b Jersey Central, 5 if they are tam participant, is that own with tha izqcsition 6 of a tax, and that tax would preonuly be en enerey, charn will 7 still be 1,000 msgswatts of capacity availablo, and under the i

8 tor:c of the cur:1nt FJ:1 agraucent, and we ars presuminy that 9 thoue ter=s will assentially centinue, thoro era hansfits 10 for inctalled capacity witajn ?J:t just the sama vny that t

11 there arm energy benefits and tnosa capacity benafits will

, 12 ; secrus regardless of whathar taa base Icad energy with a 3  :

. i

13 l heavy tax imposition tenda to loue its economic benefit.

a i 14 So that the jua tificatica of the investment to A inrge extent a

d 15 can be of fset by the fixed asnefit that will accrue to Jersey 16 central due to the installed capacity cenefits within GPU l

17 and vithin the PJM agree:mata.

18 0 Tou are not talling me tast the benefit in

, 19 terms of not havin3 to make capacity deficiancy paynents is 20 so grsat tnat it fully justifies the entire f 275 millica 21 investmont, are you?

22 A It tends to offset it to the extent where a 23 major portion of the fixed charges could be justified on thn 24 basia of capacity payments only, but our studies indicate 25 ; that no, not all of the carrying chargos asacciated with the i

i L

F hright-cross 165 1l inve s tr.en t could as justiflod by uno capacity senefit only.

l 2 Q Is enere prosently any lattur of i,ntant signed 3 of any <ina 34:v-sen C2U and catario dydre concsrning this I

4l i project or la it all still in the preliniaary discussics I

5' stagos?

6 1

a :4,11, ite s beyond the prs 11minary discussicn 7 stages, out not to the stage of a signed latter of intent.

8 tiopefully, a latter of intent could conceivanly be signed i

9 l uscrtly, thouga we indicatsd, I think, that one or two scaths i

10 ago.

3

. 11 l 0 '-that ti

. a cfra=u do you mean by " shortly"?

! l 12 A We have meetings scheduled for this nenth yet 13 , and there ar2 more rAetings scheduled, if requirad, during f 14 the ccath of Septonber.

a f 15 ; O It's conceivaala ve could nave a lottar of i:

l 16 intent in Septsahar?

l 17 l A Yes, it's cenceivable.

18 J Likely?

19 A I would hope it wculd be likely. I can ' t speak 20 , for Catario Hydro and their 3 card of Directors and the politi-21 cal situations that exist in the Provines of Ontario and in 22 Canada itself where energy is a .sajor politics 1 concern.

23 To try to intarprst what the feelings of tha Provincial Corporation's Board of Directors woule asy, since tney 24 l i

25 report to the Provincial Government, this is one of the i

i

Brigat-cross 16G I

major questionable areas that I certa 141y han no 1=put into.

2 Q All right, let's move on to cae yx4 cose plus 3 13 percent settlement.

4 JU 2 MA3S3ALL: Excusa raa, off the 5

record a moraent.

6

(~n% reupon, thera was .sn off the record 7

discussics.)

8 9

10 I

11 12 -

i3 4 13 4

i 14 i

5 15

!a 16 17 18 19 20 21 22 23 .

24 25

T L; . , 3rit;ht - cr :::c g t

i 'O.2:cr C.e =ff thm :ncord discussicn.)

i DJCC M.W31:%La ".sch on Fhe record.

2l I

"% 7~373: 'Dilo 'su es: a the 3

I r: cord, I We ;J.J 11hc to point out before you 4

continuo vith iT. 9:ight, as fre as the finan-5 6

cial ispect of thoso arrangoments, !!r. Stegar o s tastirony will cover that and I saould suggust 7

g to the a:: tent that yen havo quastions in that 9

ares, yoc might unnt to defor than until Mr.

E**U"# "* "3*

10

! 7.R. .%% ult That was our undorstanding

. II 12 as well. Je nly havn a coupla f briaf ques =

i ticas on split saviag : for rir. 3right.

13 14 i!

SY M2. MA mL

{

i

. Q Canantially, the quantions we have are, assun-15 '

f lag the agretment tahMS !.t thrQugh and ~ thrCUQL the l'ERC requiavsry approval procedures in Septa =ber, i:a this ' settle-l'e

"" #" " # # #

• I E*""

18 19 l

• **O AP9MMU

^ 2" "" * * # Y E" " "*

• 20 discussica of retroactivit*r vue discussed with the other l 21 l

i NM co= panics but they smuld not sgree to it as part of 22 '

the settlenent ccaforence.

23 0 Tou .-w:ntioned that there is a cap of 10 24 l

l porcent on split savingn which expires either at the and of r 25\ l t

l

r s

lns 2 3ri Jh:: -

rrass 150 i

1M 1 or when W.I-1 restar.s, whichever la firas, correct?

I:

,, I .s Correct.

Q And accer-ling :o the filings that we have re-

,  ::aived in thi.1 12 22, ':"C-1.'.a orpacted to erma back into 4

"^ ## " '

' ' "' "U"*""** **

5 "

6

^ = #t'2 =Y ='# 11*cti **

7 O Sc ' hat if that vers to hold or even were to I

8

• 2 *# # ' '# # * * * * ****

on uplit sa,-ings vould h 2 derived ser e ti - s in the tina 9

period froa Septa =ber 1 of this year to August 30th of next ,

j year, As caing that TRI-l doos not vlip?

. 11 A That scur.ds corrnet.

12 ,

3 0 And even if T. -1 does slip, we would still 4 13 i he cbtainir.g substantial bonafits' voll, substantial I 14 l guess is a term that - but, wo would cbtain benefits frea 5 15 !

! l this ps.ovision of the agr.ionant during the lifs of this 16 Lavali ca snorgy Adjustment Clause?

l,e A That would be right. I thirJt it has to be tempered to enatever those benefits might be. As you indi-cated tney r.ay or r.a7 =ct be substantial depending on how 20 much energy Jarac:: O u.: al and CPU would be purchasing under 21 thosa provic1.ta.,

22 y And at the tins Mr. Steger appears, him testi-23 many goes into the quantification of thou hansfits?

24 l A 'las.

25 l l 1 l

, i l

l i

2 3 ,

.Ori.;ht - Ort:3 162 i

0 Ona st.t. : inoction, Mr. Oright. If G?U cr il 2i J3rmsy Contral vers tc in effcet lino up more onor77 frcs I

3i i

ent11ds sources than it needed at 7 rices bolen the PJM run-i ning ratu, i= ny undarstanding correct that Jers2y Central 4

er CPU t.'ould be able to take that :xcess emer;y and sell it 5i 6l urough the grid at or slie:htly above the ?J'1 running rate?

! A It eculd nell it under the scenemy energy 7

provisions of tho 7JM sercerent. The spec 111 previsions of 8

9 the PJ!t agreenant applying to the purcheso of onurgy asso-

"* " " U" " "Y" ' E* C'# U* #'" ""

10 l I

i i instaad of the c711t savings provision which spply to all

. 11 l 12 otner sceno=y tranca tions within 77M and which would, apply to a sala by G70 to PJ:t of econc=y nuargy.

l* 13 I

j g I

O so T quaes to rephrera the question, if in a s

given hour oloctricity in co. ting in frcs outsida cources

- 15 I 1

!-  ! and the price of that hour is icwcr than the PJM running 16 I rate is that hour, that energy could be sold? It could be l,e

(

sold -

18 19 under the tnrns of the econony interchange provision at 0

I ?JM plus any differential between the suppliers' cost and

the rocsiver's alternativa cost.

22 23 24 l

l 25 i l

i s

l

170 7.4 1 ,

3right - cross l

l E. %:?r."J : I" ! .mcy interrupt, Mr. I Ij i

I 2! Ut17er can -s 712in where in certain instances i

this mi:;ht 50 cc 2dv stsgo and in cartsin in-3,!

i 1 stances it ::ight be a disadvantap when we loc 3 4l 5

at the cetual csters.

T..  :'mL: I n a talking about it 6 '

i i

thnorctical with raapoet to additional pur-7l1 8l- chasas.

M." . C7E,r.3 2 Theoret.cally, yes, =ad I 9, or ao saying that ths Otection of whether [not 10 that formula is advsntaquot:s or disadvantage-gi

- t cuo vould be sem2 thing .tr. Ste<;st would address.

I 12 li

• I Tim 7!T'.CS3 r Mr. Steger is c:tpert in 4 13 l

=  ;

5  ! all the prorisions of De PJM agrment and

. 14 i y

as, cn n and S resuha of nt a7 15

! Eli" ti "*

16 i l

37 it?.. MAKUL l

Is i 0 8 "#* *"" ~

1 18 in l

inq precedurca that tho Oc=pany has vono through [ order 39 l to line up the cutside supplias that are prosantly flowing

,,0 1"t it?

21 A lio, that shoulr1 bn undar Imf reGponsihilitJ fcr

' oo 9

i ICSpOn30 l

I PT.. !C\TF 3 I sco the hett- is 10 :sinutes 24 l sf tor throe, h.it thero uns a lot of intstrost ,

25 !

t

r 73 2 3right - crocc 171 1

Il r/prorie.d by tha yablic witne::en and I have i

2 I a coupla o' questions concarning tha procutiurus i 3j hy whlen the outuico supplier - theo sur l i

plica unre lium! up.

4ll M. Em:.ith Uc11 !::. Erip.c vill be 5l i 6l hora term .

t l

y n . Ot A Y.!? L : no will be here tomorrow?

4 8

Mn. E!n m ur rec.

P.n. toni;La Than perhr.p2 va can continue 9t 1 with his to-c row if Judge y,archall vould 10 like to end ths henring ncy.

yy f.

• t'i. KI25T5M:  ?! hila diJcuncing the 12

! ==hedule for tomor:cw, vu will cen inue first

$ 13 ,

I thing in tha rorni.~,q v12 the co=pladon of

!: 14 l Mr. Bright, anel then :Ar. Steger.

f 15 l

I

! !T.. T. .  : W. s ri7 ht, 16 i

213. KI%C0" ta Then wa will have yx.

U.2bor available. Is that natisfactory?

l E" '"'A "18 I'1#8' 19 l t

i J'JO C ."AT.SUALLs Chay. If there is no o0

- i cbjection, than no vill break now and resu:::e g

at 7:30 this evening st tha Toms River Intar-

n. .,.

l =ediate School.

23 (AOJC0F0:2D To THIS Zv.'Gr;G AT 7:30 P.M[,

24 l l AT 02 TOM 3 RIV:n IZ 3:CIDIAT 3C21 COL, TOMS 25 i i

i R"/".3,

. fitti J20S T.)  !

i

I 172 i

1 ', 3311 I32TS I

O  !

~

klu=bar Description Page 3

P:JE-1 Latter from. . irs . Albert II. Bevor 44 PUF-2 Lotter frem Catharina sloff 44 5

6 PUF-3 14tter from Elizabeth Combe 44 PCP-4 Latter from Jersey Cantral Power &

7 Lignt dated Pfarch 24, 1730 to Mrs.

8 "E * "" " ""I * *"#I ~

ing bills and canceled check 45 l

9 PUT-3 Letter from atr, and Mrs. Philip l Crtaga dated August 20, 1930 to 10 Jersey Central Power & Light Co. 54 I

2 11 JC-A Inergy Cost Forecast on which LD4 Filing in Dased, July 1900-August 12 1931 (filed with Petition.) 133

( 4 13 JC-A.1 Esargy Cost Comparison, Actual vs.

3 Forecast Energy Costs, April-June i 14 1930 (superceded by Exhibit JC-A.1

(a). 133 5 15 ,i j JC-A.1(a) Energy Cost Costparisca, Actual vs.

16 l l Forecast Energy Costs, April-July 1930, 134 17 JC-A.2 PJM Running 34tss *1sti: mated for this 18 LEAC Period, Based on PJM Study Dated 7/22/00 134 19 l JC-A.2(a) Oil Cost Assa:sptions of the PJM 20 Companias Dased on a Sample of ?fyi-l cal PJM cil-71 rad tJnits. 134 21 l JC-A.3 LEAC Period Oil Costs by Type and l

22 Sulfur Contenty Actual vs. Forecast comparison of 011 Costs, April-23 June 1330. 134 24 JC-A.3(a) 011 Cost Comparison, Actual vs.

Forecast cost of oil Purchas4a by 25 Fuel Type and Sulfur Contant, April =

June 1900 134 l

! l l

I 173 I

1'  !"7T1:~4

'.T3:c '-'tL:~  ?:qe 2l i!; % t 3l JC-l CIh) O ' ' CC :"- Oc C'rri":'n k:tual '73-7orocaat Coat of oil as 3*.trned by i

r .a! ?;p :: .d tuifur Content, 4l 135 i Ap:11-July 19G0, O"

JC-A. 3 (O) Actual and Projected Cost of 011 6;  ? :ch:::: by T.:ci ?Jp d Sulfur Centant, Year 1340 by Maths. 135 l

7 l JC-A.4 Cas Costs and Quantities Porscast 8l, f 07 '

t-.'s *-'EC P ':210d (20fo c Adjust-xents) , 135 l

9:

JC-A.4(a) Darivation of Adjust =9nn:s to Gen CCSt3 Ed 7:a^titid2 TC CC35t IC 138 10 133 L3AC Fo:iod.

11 l.

j  ! JC-A,4(b) Gas Cost Cassparison, Actual vs. Fora-cast *:a n ud Oc.intitics of Ca.. OcInad, 12 l 135 April-June 1923 13 ,

8 l

JC=A,4 (c) Gas Cost Casparison, Amt.tsl vs. Fors=

cast Ccet =d Guntitiac of ?,cs Ourned i 14 ;

i  ; July 1930 and 4 Ecatha April July 103 15

I.

i 16 l JC-A. t M) Q: Costa and C untitics rcrocsat for i

tha LEAC Period as Adjustadp 5stimats4 17 2000% CO D C"* M 3 0 S C C i u t 8 0 '# i h Cas Adjustsents by Hen *hs and Generat=

ing !Itations. 136 18 ]

19 JU"A 3 CCriAtiCa 01 0 0071 Ccst P.cductianu

! Associated with L;iiAC Period Sales Ad-I just::ents. 116 o0 .

I JC-3 Cerivatian of ncquestad L2AC Increase 21 136 l (Filed with Petition.)

i 22 l JC=C Charges to Customers Ccaparisons, L;AC

?*# '** i**U**U E*~

O' * ** *

• l

23 creases Rate Comparisons, Jersey Centa,41

,,4 vs. Meigicering Utliitics (filed trius

~

i Petitica.) 136 i

25 I

( l I

i l

i  !

~

r

]

1 1

' 174 1

• Y5 -': : 0 j 1l

^s:crL~tAcn 2190 ,

2. ':::::bar )

i i

3: OC -C , i

~'2vii!.an to inn 151 JC-C to Correct l C.rrer Mfocting Ostormination of 0inra11 Pereont I:. crease in Chargos to 4

custe:pers if L2AC Increase vers '

cranted in 7:11, 136 5

j 6, JC-c ?rojected Emforred Snerny' Coot 3nisncos, <

j vith and without seinestad 12AC In- 137 7

creana (711ad with ?otition.)

8 JC-D.1  ?.ctual vs. 70 recast Caferrs. Onurgy Cost Salanca, July 1330 137 9;

Salas and Custcasars by P3EC Classes, l JC-n and .v.nidential U o ger %-este=er, 10 i Years 1930 and 19d1 by Months. 137 i

3 2

11 JC-P Oil Suppliers, polivery Locations, Contrset "c =s and Cuantitics, forn-12 , 137 I cast Methods.

i.  !

13 l i JC-G Jersey Central Power and LirJht Con-pany, NJr.Pt; ccchet !!o. 307-428,

! 14 l 137 i i L AC Increase w st filed 7/21/80.

15 ! ,

O a

16 ! i i,

17 18 '

19 1 i

20 l 21 o.o i

23 24 ,

I 25 l f

i

c r 173 Ii !M3S%

Public 'fitasaa Page 3

DIXf: FM122 31 i

4I 45 l MIC3ACL NOC: i 5l8 9LA:4C23 IUTC11C 49  ;

I 6i DUTH titCUT 52 l

7 C33I3 J. AL3RI: CIT 60 8

GO3cCN DRISCOLL 58, 115 9

S!!ARCX StfARETTE 73 10 36 MARCIA 3 HIT 5 3032IE JOMEGON 08

.i j VAL 22I2 NALS11 90 13 e i JC3EPit?ICX3PSGILL 94 a 1 i I 14 l F33332%C% KIC3 98 i

m j 15 31tA2LI23 C3ATs 103 I 16 104 DOEordY ARGYacs GUNA JCQS3f.,N 106 l

I0 DO;DIA M. PETE23Og 103 19 110 ADMUND STOL3EE382G 20 21 22 23 24 25 I

( , -

' 175 h !430% (Ocntinued) 2 W i _ n s s_s_ Direct Crcss 3'

LXJ333C2 P. GE:.TICU 4

! !ay .'ir. Kirsten 119 5

AICIARD 0. ERIGt!T 6

37 ;4r. xirsten 134 7

sy Mr. .wakul 155 8

9 10

. 11 12 8

~

. 13 E

14 i

5 15 +

16 i

17 18 19 20 21 22 23 24 25

. - . _ .__ _ .. __ - - _. _ . - - - .-