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Letter to the Hon. Richard Mroz, President of the New Jersey Board of Public Utilities - Pallone Calls on New Jersey Board of Public Utilities to Audit Misleading JCP&L Lobbying Campaign

Letter

Date: March 28, 2017
Location: Long Branch, NJ
Issues: Energy

Dear President Mroz:

I write regarding the Monmouth County Reliability Project (MCRP), the proposed 10-mile, 230-kilovolt (kV) transmission line and substation enhancement project announced in June 2016 by Jersey Central Power and Light (JCP&L), a subsidiary of FirstEnergy. Specifically, I am requesting that the New Jersey Board of Public Utilities (BPU) audit JCP&L to ensure that the company is not using ratepayer funds to underwrite its lobbying campaign.

It has been brought to my attention that JCP&L is sending flyers to residents of communities that would not be affected by the construction of the MCRP, as well as sending employees door-to-door to these neighborhoods to conduct surveys. The flyers claim that the project will increase reliability, and asks residents to send the flyer back to JCP&L to signify their support for the project, with postage being paid by JCP&L. These materials do not disclose that construction of the $111 million project will result in rate increases for residents, but the flyer does state that information provided by residents could be shown to the Office of Administrative Law and BPU. BPU should act to ensure that ratepayer funds are not being used to further JCP&L's agenda.

While JCP&L may argue that these communities will benefit from the construction of the MCRP through increased reliability, I remain unconvinced. Ever since this project was initially proposed, I have made it clear that I am skeptical whether the MCRP is the best and most cost-effective way to ensure reliability in Monmouth County. The state Rate Counsel has also raised concerned about the benefits of this proposal. In January, Rate Counsel testimony described technical alternatives which could improve reliability and satisfy the requirements of the North American Electric Reliability Corporation.

Instead of spending ratepayer funds to sidestep the legitimate concerns of the communities that will be directly affected by the construction of the MCRP, JCP&L should be exploring alternatives that accomplish its reliability goals without disrupting these communities.

Thank you for your consideration of my request.

Sincerely,

FRANK PALLONE, JR.
Member of Congress


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