BPU policy change could cost consumers hundreds of millions in higher rates

nj environment news, electric transmission lines

TOM JOHNSON / NJ SPOTLIGHT – New Jersey’s utilities stand to gain at customers’ expense under a regulatory change approved last week by the state Board of Public Utilities in adopting an arcane policy in how it treats tax losses.

The new rule, adopted after a previous board order was tossed out by a state appeals court, deals with how utilities use the savings they achieve when they file consolidated tax returns with parent companies and affiliates.

The result could end up costing consumers significant benefits in future rate cases, since the rule often has been used as a bargaining chip to offset increases sought by their utilities, according to the Division of Rate Counsel …

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