Transcription
Welcome to the New Jersey Board of Public Utilities meeting for September 25th, 2025. If we could rise for the flag, Commissioner.
I pledge allegiance to the flag of the United States of America and to the republic for which it stands. One nation under God, indivisible, with liberty and justice for all.
Okay. Madam Secretary, will you read the public notice, please? Notice have been posted at the board's office and website. email to Department of State and to newspapor circulation within the state.
Thank you. Can we have a roll call? Commissioner Chris here. Commissioner B here. And President here. And when is our next meeting? The next regular board meeting will be held on Wednesday, October 8th, 2025. It may hire be in person at the board hearing room at 44 South Avenue Trenton and live stream.
Thank you. We will have a consent agenda but not an executive uh session today. Uh and we do have a late starter on the agenda if you haven't noted. Um just a few opening remarks from me. Um first we um just want to acknowledge Raja Shana and hope that everyone who celebrates had a joyous new year and uh Yamapur next week um a peaceful Yamapur.
Um, a few other things. Um, we have it is Hispanic Heritage Month and this is the time to honor the vibrant culture and contributions and achievements of Americans with Hispanic backgrounds who are an integral part of the fabric of our country. So, thank you to all of the employees here um with Hispanic background and to the state of New Jersey.
Um, it is climate week and also drive electric month. Um, and those two are very closely related as we know. Um, we have advanced our own electric vehicle program in the state of New Jersey. Great work from the BPU team as well as some of our sister agencies. We now have nearly 250,000 zero emission vehicles on the road. Um, so that's really exciting and that helps to contribute to reducing emissions associated with climate change.
Uh, just one particular acknowledgement. Um, this week there was a PJM governor's conference. Some of you here today were there on Monday. Um, it was a really interesting conference. a lot of great dialogue and I just want to acknowledge the staff here who helped to contribute to that and also colleagues in the governor's office both in New Jersey and around the PJM region who worked very hard to put that together. It was a really informative um conversation.
So our next quarterly meeting is tomorrow Friday at 10 o'clock. Um, and that will be held virtually. Um, and it will also be online via YouTube. Written public comments are due for that by October 1st at 5:00 p.m.
Uh, I'm going to acknowledge some new interns. Um, I think only a couple of them are here today. Uh, but I will if I if you could just stand up and wave. You don't have to say anything unless you want to. Um and uh and just welcoming all of you to the BPU team. So we have Brooke Godley, Michaela Griffin, Mahham Persed, and Leila Razic. If you could stand up if you're here, thank you and welcome. Always great to welcome staff, uh interns, and any any new folks to the BPU team.
And then one last thing, we have a utility assistance day on Wednesday, October 1st in PAIC um at the Boys and Girls Club. So there's information about that online um and hopefully hopefully we'll get that message out for those who might need utility assistance.
On that note, any opening remarks from my colleagues?
Just to add, this week is climate week and I spent the last few days in New York as a participant in today as well and tomorrow. Um, global climate change, as we all know, is a global phenomenon. But we are not alone in our pursuit to relieve and remediate global climate change. From so many of our observations and conversations, good people and good governments around the world are working to solve this problem. So, we have great partners throughout the planet working to solve this problem. And I'm glad that New Jersey is really leading the way in in the US and continues to do such great work that is recognized globally. So great thanks to all of you. Your work is appreciated and it will be even more appreciated in the generations to come. So keep up the good work. Thank you.
All right. Um we have our consent agenda. Madame Secretary, if you could please call the consent.
Yes. The consent agenda items consist of items 1 A, 2 A, 5 A, and 5B and 9A.
So moved. Second. Thank you. Questions or comments? Roll call, please. Commissioner Crystal Doom, yes. Commissioner Bage, yes. And President Gadoli, yes.
Thank you. Okay, moving into our regular agenda. We have 2 A with Morin Clair.
[Music]
Good morning, Madame President, commissioners. Uh, this matter concerns the electric and gas utilities annual compliance filing to determine the universal service fund and lifeline program budgets and rates for the upcoming year. USF and Lifeline provide energy assistance benefits to over 200,000 low-income New Jersey households. On June 27th, 2025, Public Service Electric and Gas Company on behalf of itself and the other gas and electric distribution utilities made a filing with the board for the 2025 2026 universal service fund and lifeline program year. The other six gas and electric utilities also filed compliance filings in this docket. In this June filing, the utilities requested rate adjustments to recover a USF budget of approximately 324.2 2 million and a lifeline program budget of 74.6 million. In the June filing, the utilities also requested the board approved recovery of the company's USF related administrative costs and deferral of the company's administrative costs associated with the board's order dated June 18th, 2025 regarding modifications to the USF program. Additionally, some of the filings included a request to finalize the current USF interim rates which were approved in September 2024. Throughout the course of the proceeding, the utilities filed corrections and updates to the June filing. Because there were proposed increases to only the electric rate, the utilities the electric utilities each held two virtual public hearings. While members of the public attended the hearings, no comments from the public, verbal or written, were received. On September 8th, 2025, rate council submitted comments regarding the June 2025 filing and subsequent corrections and updates. Rate council recommended several adjustments to the utility forecasting methodologies and carrying charges. On September 10th, 2025, reply comments were received from JCP and the joint and joint utilities. After reviewing the June filing and all the related submissions, staff recommends the board take the following actions. Number one, finalize the current interim USF rates that were approved in the September 25th, 2024 board order as these rates have been reviewed and tred up. Number two, order subsequent USF compliance filings and its associated interimm rates. Uh, number two, order subsequent USF compliance filings and its associated interimm rates be examined and finalized in subsequent proceedings. Number three, reject rate council's recommended adjustments and proposed modifications to forecasting methodologies at this time, but after the comprehensive audit examining the USF ratemaking process is concluded, direct staff to work collaboratively with the parties prior to the 2026 USF lifeline filing to determine if any adjustments to the methodologies are warranted. Number four, approve the USF and Lifeline electric rates proposed in the corrected filing with rates to be effective for service rendered on and after October 1st, 2025. And approve the USF and Lifeline gas rates proposed in the July update with rates to be effective for service rendered on and after October 1st, 2025. These rates would support a USF budget of approximately 329.2 2 million and a lifeline budget of 74.5 million. Number six, direct the utilities to file revised tariffs by September 30th, 2025. Number seven, direct staff to reimburse the utilities for their USF related administrative costs incurred from July 1st, 2024 through June 30th, 2025, which total $53,03. Number eight, authorize the utilities to defer for accounting purposes only incremental USF administrative costs associated with the USF modification order subject to review for prudence in the next annual USF annual filing. Uh, number nine, utilize the remainder of the board's 2025 allocation of the state's regional greenhouse gas initiative to offset some of the anticipated USF program bill credits for eligible customers. If approved, the combined USF lifeline rates represent an overall decrease of $1.40 for an average average residential gas customer utilizing a,000 thems per year and an overall increase of $12 for an average residential electric customer using 7,800 kilwatt hours per year. The combined USF lifeline annual bill would be $61.36 per year for an average residential customer who uses both gas and electric, which would be a net increase of $1060.
Thank you. So moved. Second. Questions or comments? Uh thanks Morin. Just want to acknowledge, you know, all of the staff's work on this um and expanding USF over the last several months. As we know, it's a critical resource for low and moderate income utility customers, especially as we see rates go up. So, really appreciate all the effort there. Thank you. Thank you. Roll call, please. On a motion to approve staff's recommendation, Commissioner Christo Doo. Yes. Commissioner B. Yes. And President Gulovi. Yes.
Thank you. A Wanda. Hi.
[Music]
Good morning, Madame President, commissioners. This matter involves the final approval of the renewal of Cable Vision of Newark systemwide franchise serving the city of Norc and the township of South Orange. On August 4th, 2010, the board issued an order memorializing Cable Vision's conversion of its municipal consentbased franchise for South Orange to a systemwide cable television franchise for a 7-year term. Cable Vision subsequently added NORC to the systemwide franchise, which expired on May 11th to 2017. On June 30, 2017, the board issued a renewal of that franchise to Cable Vision for a term of 7 years, which expired on May 11th, 2024. On October 23rd, 2024, the board's office of cable television and cable cable television and telecommunications, OCTV&T, notified cable vision of its intention to review its performance during the past seven years and invited the company to file comments. Cable Vision filed its initial comments with the OCV&T on November 22nd, 2024. On March 19th, 2025, the board issued an ascertainment report on Cable Vision's performance. On June 18th, 2025, Kippo Vision filed its renewal application with the board. The board held two virtual public hearings on July 29th, 2025 to receive public comment on the application. No comments were received. Written comments were received from the New Jersey Division of Rate Council on August 4th, 2025, indicating the Cable Vision had met the parameters of the board statutory criteria outlined for review of the application and that they had no objection to approval of the application. No other comments were received. Cable Vision has committed to abide by the specific requirements for operating a systemwide franchise as delineated in subsections NJSA 485A-28H through N as well as maintenance of its current insurance and performance bond amounts adherence to requirements for a total for a local office excuse me and designation of the OCV&T as complaint officer under the franchise staff therefore recommends that the board approve Cable Vision's renewal application for its systemwide cable television franchise for NORC with a 7-year term to expire on May 11th, 2031.
So moved. Second. Questions or comments? Roll call, please. On a motion to approve staff's recommendation. Commissioner Crystal Doo. Yes. Commissioner B. Yes. And President Gadori. Yes.
Thanks. Thank you. Okay. 5A. Dr. Ben Cidell.
Good morning. Good morning. I actually have two water merger introductions for you today. Uh can start with item 5A. It's the joint petition of Middle Sex Water Company and its direct subsidiaries Pinelands Water Company and Pinelands Wastewater Company. The joint petitioners seek approval of a merger without a change in control of either entity. The proposed merger is ministerial in nature and is essentially an internal reorganization as control of the Peland's companies were merged with Middle Sex Water through prior proceedings and Pineland's water and Peland's wastewater are already wholly owned subsidiaries of Middle Sex. Therefore, staff recommends that the board retain the matter for hearing, designate a commissioner to preside over the matter, and set filing deadlines for parties to intervene or participate in this case. Thank you. And I think commissioner be your your great thank you.
So moved. Second. Questions or comments? Roll call, please. On a motion to approve staff's recommendation. Commissioner Christo Doo. Yes. Commissioner Bage. Yes. And President Gobi. Yes.
5B. Item 5B. This will sound somewhat familiar, but it's a little bit different. It's the joint petition of American Waterworks, New Jersey American Water Company, Nexus Regulated Utilities, Montigue Water Company, and Montigue Sewer Company. In this case, the joint petitioners seek approval of an acquisition and change in control of the Montigue companies, which are currently direct subsidiaries of Nexus by American Waterworks and New Jersey American Water. A subsequent merger of the Montigue companies with New Jersey American Water is also part of this matter. and American Waterworks is the parent company of New Jersey American Water who would be acquiring the Montigue companies. Staff recommends that the board retain this matter also for hearing, designate a commissioner to preside over the matter, and set filing deadlines for parties to intervene or participate in the case. Also Mike, yes.
Okay. So moved. Thank you. Second. Questions or comments? Roll call, please. on a motion to approve staff's recommendation. Commissioner Crystal Doo. Yes. Commissioner Bank. Yes. And President Gadoli. Yes. Thank you, sir. Thank you.
I see. Good morning, Madame President and Commissioners. Morning. Morning. On June 30th, 2025, Violia Water New Jersey petitioned the board for permission to enter into an agreement with Violia WTS Systems USA Incorporated, an affiliate, uh, to perform startup and other services for the installation of membrane filtration equipment and it at its Bald Eagle Village and Birch Hill wastewater treatment plants in New Jersey. VIA sent proposals requesting bids to four vendors and received two bids including the bid from WTS. WTS was the lowest bidder and VIA subsequently awarded the contract to WTS. On August 28th, 2025, the New Jersey Division of Ray Council filed comments noting it did not object to the approval of the affiliate agreement subject to certain conditions. Staff recommends that the board approve the affiliate agreement nonpro Tunk as WTS has already begun work pursuant to the proposed affiliate agreement. Thank you.
So moved. Second. Questions or comments? Roll call, please. On a motion to approve staff's recommendation. Commissioner Crystal Doo. Yes. Commissioner B. Yes. And President Gobi. Yes.
8. Thank you, Dean. AA Dustin. Good morning, Madame President and Commissioners. On April 23rd, 2025, the board approved the Division of Clean Energy's 2025 to 2026 SCP plan for submission to the United States Department of Energy at a budget level of $4,787,220 representing $3,131,000 in unspent carryover funds and 1,656,220 in new funding. The board authorized staff to submit this plan to the United States Department of Energy. The United States Department of Energy ultimately informed staff that their 2025 to 2026 plan would need to be supplemented or revised. Staff seeks to revise the SCP plan per DOE guidance and include allocations of funding to projects that are shovel ready to the maximum extent possible in order to quickly pursue state priorities while preserving preserving rate fair funds. Staff recommends approval of the modifications and submission of these modifications to the United States Department of Energy.
So moved. Second. Questions or comments? Roll call, please. On a motion to approve staff's recommendation. Commissioner Christo. Yes. Commissioner Banks. Yes. And President Gobi. Yes. Thanks, Dustin. Thank you.
Last but not least, the late starter presented by Bob Braston. Good morning, President and Commissioners. Uh, this matter is the petition of Trenton Renewable Power uh filed uh in 2024 seeking approval of a 10-year uh PPA, purchase power agreement for the sale of energy generated at its food waste recycling facility. Um uh the facility includes digesttors that recycle vegetative food waste and produce renewable natural gas as a byproduct of its recycling process. And they have three generators on site that generate approximately 3 1/2 megawatts of power. Uh it currently uh uh sells its power for about 3.8 8 cents per kilowatt hour under the uh purchase electric power tariff uh with PSEG. Uh and they also earn revenues of uh about 2.9 cents per kilowatt hour through the sale of class one Rex. Um in the petition, Trenton Renewable requested a purchase power adjustment uh purchase power price of 20 cents per kilowatt hour. Um uh after extensive uh discussions uh discovery analysis um the the parties got together uh on a price that uh is uh pegged at the PSEG BGS price um and will be initially set at approximately 11.6 6 cents per kilowatt hour before taxes. Uh providing customers uh a benefit of approximately 1 cent per kilowatt hour compared to BGS uh for the duration of this contract or until the facility stops uh producing renewable natural gas. Uh the uh uh Trenton Renewable will be required to file with the board on June 1st of each year. uh any uh changes to the PPA rate uh pursuant to the the terms of the agreement and staff recommends that the board uh approve the order um and uh uh approve the uh uh new purchase power agreement. I will note that rate council is not a a signatory party uh but they have expressed no objections uh and did not file a position with the board. Thank you.
So moved. Second. Questions or comments? Bob, we've spoken about this a lot. Just for clarity, they will be 1 cent below the BGS auction rate for perpetuity basically for the 10-year term of the contract. For the term of their contract, there it's going to be below the BGS rate. Are we reviewing this anytime before the 10 years as as we've discussed? Yes. Uh in addition to the one-year um the requirement that they file a new uh and updated um uh number every year, there's also a specific provision uh requiring them to file a petition uh 3 years from the anniversary date of the new agreement. Okay. So future boards and staff can review and make sure that they're doing things the way in the best interest of the rateayers. Uh yeah and as we discussed that was um that's part of the board's inherent powers but we uh after our discussions we agreed to make an explicit condition formalize it. Okay. Thank you. Sure. Great. Okay. None for me. Can I have a roll call, please? On a motion to approve staff's recommendation. Commissioner Crystal Doo. Yes. Commissioner Banks. Yes. And President Gadovi. Yes. Thanks very much.
And with that, that is our last agenda item as far as I'm aware. Uh thank you everyone uh for coming today and if you're watching online and again um peacefully yam kapor to those who celebrate um and you know of course have a wonderful rest of your week. Closing comments. All right. Um motion so moved. All right. All those in favor I we are journ. Thank you. Have a great day.