Officials, Citizens Light Into Electric Rate Hike Proposal

pie in the state is in the hands of three people, at least one of them should bloody well be there," she

added

Bl'T AT least this time, tjie utility seeking its ninth rate increase in 10 years was' forced by public interest and concern to defend its position at hearings in its immediate service area Usually, hearings are only held before the BPU in

Newark

’Hearings in South Jersey are primarily being held thanks to the efforts of Stop the Electric Punch — a group of businessmen and citizens that have banned together in the wake of Atlantic Electric's move to become the most expensive utility in the country. The organization — originally created by the Lower Township Chamber of Commerce — is acting as an intervener in the rate

Dor It Wtttd

S.T.E.P. PRESIDENT Warren Garretson, standing, colb fers with Atlantic Electric representatives Daniel Duthie, legal counsel; and Jerry Salomone, vice president of Control. prior to start of last week's rate hearing at Wildwood

High School, aUgjidedby more than 400 citizens. borrowmg crease because the higher

the cost

money and about $17 million for higher exjfenses

and operation

COMPANY 1 comptroller Jerry Solomon said the reason the utility is re-

appointed Compiissioners thal will actually deter mine if the increase should be granted were present •'I think it was a disgrace not one member of the BPU was there.” Lower Township resident Peggy Spencer said later "It's like having a trail without a judge being there...When a decision that will affect a third or quarter of the peo

•W’K OUT TO FMtt TWH"

IN A VICTORIAN PARLOR. ATAGAYarS SALOON. AS WHOEVER YOU WANT!

case

E. Warren Garretson. president of STEP, said that. "We have crossed all lines, political, social and economic.” adding that the organization ~ which has expanded 1 into all counties served by the utility — has received more than 2.500 letters -from irate - customers. "We have personally talked to 4,000 people." the president added I'D ADVISE Atlantic Electric to start listening. If they "don't they're going to be in big trouble not just in this case but in others down the line," Garretson

asserted.

If approved, the 37 per cent increase — described by state assistant deputy public advocate Theodore C. Granger as the ’ largest by far" requested by this utility or any other — will go into effect after Sept. 1. It will up monthly bills between 34 and 38 per cent. Company officials.cited the cost of inflation, expense of building new power plants and the high cost of borrow-

utility rates are also being charged to them thru local purpose taxes, school taxes and business expenses. “The cost multiplies over and over again,” one

made by officials and utili-

ty customers:

—Speaking for STEP, E. Warren Garretson charged that stockholders, not customers, should reimburse the company for the $16 million it invested in a nuclear power plant that never generated any elec-

tricity.

"Atlantic Electric not only wants the money, they want it within four years,” he said, noting that the

pany’s annual report indicates stockholders dividends increased in 1961 for the 29th consecutive year. Gross revenues were up some 21 per cent. The assemblyman also stressed that the high utility rates are forcing industry out of New Jersey, using Wheaton Industries as an example. According to a letter from a company executive, Wheaton is considering another out of state expansion where the cost of electricity isn’t as

high

—Cumberland County freeholder Edward Salmon joined Cape May County officials in opposing the in-

crease

"IF APPROVED we’re going to have the number one rate in the nation," he said. "It’s about time we put some brakes on the rate increases Atlantic City Electric’s been getting

by Rob Shilr* WILDWOOD - When the public hearing was held here Mpy 10 on AGanU 0 Electric's proposed $172 4 million rate increase, it was apparent to everyone present that Cape May Courtly, hAs a simple message for both the state Board of Public Utilities and Atlantic Electric residents here can’t afford another increase, the Utility doesn't need the increase. and customers are going to fight like the dickens to see the company doesn't get the o'kay to start, charging the highest electric rales in the coun

try

MORE THAN 400 attend

ed the 3.1/2 hour session presided over by Administrative Law Judge Richard*McGill And while a great deal’of testimony was recorded for BPU • review, not one of tht'ihree

“// we had had this much public interest in the past, we wouldn’t be paying as much now.

tkicsling the additional $91 speaker said,

million is to cover the addi- Here Is a sampling o( tional expense of federal some of the comments

taxes. He asserted that the increase in gross' receipt and franchise taxes to be paid by the company accounts for 33 per cent of the

requested rate hike.

Atlantic representatives also said their stockholders need to be protected — a point that met considerable criticism from the crowd. The increase, if approved, will allow stockholders to be guaranteed 13.5 per cent return on their investment

up from the current 10.5

per cent.

ACCORDING TO Mr Granger, the rate case by law must be concluded in nine months. "The burden is on the utility to prove the increase is needed." he emphasized, noting that his office is distressed by the "fragmentary" data supplied by the utility to support its request. Lpcal consumers and legislators alike called on the BPU not only to deny Atlantic Electric’s current

—Another veteran of utility rate hearings, Bob Schlachter of Marmora, contended that the problem doesn’t lie with the utility but instead with the BPU and our elected officials. "VOU HAVE TO have strong and qualified government officials,” .he emphasized. He reiterated the Public Advocate’s remark that Atlantic Electric isn’t supplying the necessary information to the Advocates Office so the consumer can be adequately represented. This, he said, isn’t being challenged by the BPU and local

legislators.

—Noting that unions throughout the nation are taking cuts in pay, Rocco Romano of Town Bfink said there are now two classes of people, the rich and the poor. "You rich people are making us working people

the poor,” he said.

year after year. We don’t just want to come to a stop, we want to come to a

screeching halt.”

—Lower Township Committeewoman Peggie Bieberbach called for a full scale investigation of the company by the state Attorney General's Office. Along with Middle Twp. Committeewoman Pat Peterson she encouraged customers stage some kind of boycott — perhaps a "blackout” — in protest. —County treasurer Philip Matalucci asserted

—And finally, as Wildwood Actionline director, Isabel McCullough told the company representatives, "Take care of the pennies and the dollars will take care of themselves."

SI MlLAR comments

were expressed by other county officials and residents durink the

lengthy hearing. \ All testimony takeh here

and at the other hearings in

"If granted, this increase will hurt everyone"

company plans to use the revenue to pay interest to its shareholders on the un-

paid balance.

—"If granted, this increase will hurt everyone," Assemblyman Joseph Chinnici said, pointing out that the utility has, and continues, to request far more than it needs to successfully operate as a

business.

“How are people

that in the past those appointed to the BPU have been "political hacks." Refering to the consumer he noted," Deep down we’re being strangled.” —Eleanor Coleman of Pennsville — a five year veteran of rate fights — told the crowd that "If we had had this much public interest in the past, we wouldn't be paying as

much now."

South Jersey, will be reviewed by the BPU as it formally considers the

utility's request.

■ YESTERDAY’S ■ * PICTURE PULM ■ J UBERH VILLAGE MALL ! CAPf MAY ■

"Deep down, we’re being strangled."

ing money as the reasons for the hike. According to representatives of Atlantic Electric, the cbmpany needs some $30 million for new investment. $34 million to cover

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request for an additional $172.4 million, but also to roll back the current rate. MANY SPEAKERS took the floor to assail what county freeholder Gerry Thornton charged as the company's "irresponsibility.” Only representatives from the company defended the utility’s request. And while many points were made by the opposition, they all centered around the same conclusion: consumers are being hit with more than a 37 per cent in-

unemployed going to pay these rate increases," he asked. Citing municipal streetlighting as a example the assemblyman showed the impact the rate will have on a community. IN WILDWOOD streetlighting will jump from the current year’s figure of $300,000 to $450,000 while Lower Twp. will see an increase from $218,000 to $327,000. —Assemblyman Guy Muziani noted the com-

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