JCP&L Files Rate Plan
February 19, 2020
Jersey Central Power & Light (JCP&L) filed an electric rate plan with the New Jersey Board of Public Utilities (BPU) on Tuesday that will support service reliability enhancements made in recent years, as well as recover costs incurred to restore power to customers following severe storms.
“Since our last rate case in 2016, we have made investments in our infrastructure that benefit customers by enhancing the resiliency of our system, and that grid-hardening work will continue to keep up with the ever-increasing demands of our customers,” said Jim Fakult, JCP&L president.
“The same concept applies to ensuring recovery of recent storm-related costs. With more frequent severe weather events expected in the years ahead, we need to be prepared to deploy the resources necessary to restore service to customers as safely and quickly as possible,” Jim added.
Since the beginning of 2016, JCP&L has invested $1 billion, including capital projects, to strengthen its electric system and meet reliability standards set by the BPU. Projects included reinforcing electric infrastructure on the barrier islands, completing substation flood mitigation, deploying equipment that automatically transfers customers to adjacent circuits if an issue is detected, and accelerating vegetation management work designed to reduce the frequency and duration of power outages.
JCP&L also incurred significant costs related to power restoration following numerous storm events since its last rate case, including two winter storms in March 2018, one in February 2019 and one in December 2019. By the end of 2019, the company’s accumulated unrecovered storm costs had grown to more than $300 million.
This base rate plan will enable JCP&L to recover these costs.
Upon approval of the filing, JCP&L customers would continue to pay the lowest residential electric rates among New Jersey’s four regulated electric distribution companies.
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