ASSEMBLY RESOLUTION No. 16
STATE OF NEW JERSEY
Introduced Pending Technical Review by Legislative Counsel
PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION
By Assemblyman ROONEY
An Assembly Resolution memorializing the Board of Regulatory Commissioners to investigate the Rockland Electric Company for wrongdoing and to oversee the acquisition of Rockland Electric Company property by another utility.
Whereas, Orange and Rockland Utilities, which is the parent company of the Rockland Electric Company, is under investigation in New York by the Rockland County District Attorney and by the New York Public Service Commission for alleged illegal contributions to a political campaign; and
Whereas, A senior official of Orange and Rockland Utilities and the treasurer of a political campaign in Rockland County, New York, have both been arrested in connection with the alleged illegal contributions; and
Whereas, Ratepayers' money may have been used in these illegal activities; and
Whereas, The public utilities of New Jersey are granted monopolistic privileges only to facilitate efficient provision of services to ratepayers, and they are specifically forbidden by R.S. 48:3-4 from making or giving, directly or indirectly, an undue or unreasonable preference or advantage to any person; and
Whereas, The Board of Regulatory Commissioners is charged with the general supervision and regulation of and jurisdiction and control over all public utilities, and may approve a public utility privilege or franchise only upon a determination that the privilege or franchise is necessary and proper for the public convenience and properly conserves the public interests; and
Whereas, The Rockland Electric Company charges the highest overall rates of any public utility in the State for the provision of electricity, and these high rates may be caused in part by the corruption which is currently being investigated; and
Whereas, There are other public utilities in the State with the financial and technical ability to purchase and operate the Rockland Electric Company transmission and distribution facilities; now, therefore,
Be It Resolved by the General Assembly of the State of New Jersey:
1. The Board of Regulatory Commissioners is memorialized to investigate thoroughly the financial dealings of the Rockland Electric Company to determine if that company has engaged in any illegal activities and to determine whether ratepayers' money was used to subsidize the alleged abuses of the parent company.
2. The Board of Regulatory Commissioners is further memorialized to investigate options allowing another public utility to acquire the facilities and franchise of the Rockland Electric Company or allowing municipalities in the Rockland Electric Company service area to choose the services of another electric utility.
3. Duly authenticated copies of this resolution, signed by the Speaker of the General Assembly and attested by the Clerk thereof, shall be transmitted to the President of the Board of Regulatory Commissioners, to the Governor of the State of New Jersey, and to the governing body of every municipality in the Rockland Electric Company service area.
STATEMENT
This resolution memorializes the Board of Regulatory Commissioners to investigate thoroughly the financial dealings of the Rockland Electric Company to determine if the Rockland Electric Company has engaged in any illegal activities and to determine whether ratepayers' money was used to subsidize the alleged abuses of Orange and Rockland Utilities, the parent company. The BRC is also memorialized to investigate options allowing another public utility to acquire the facilities and franchise of the Rockland Electric Company or allowing municipalities in the Rockland Electric Company service area to choose the services of another electric utility.
The resolution calls for these actions because Rockland Electric Company's parent company, Orange and Rockland Utilities, is under investigation for criminal wrongdoing. A high-ranking official of the company has been arrested. Although the New York Public Service Commission is investigating the parent company, there is no official investigation of the Rockland Electric Company in connection with these allegations. Because the Rockland Electric Company may have violated the trust of the State and of its ratepayers, and because the company's rates are significantly higher than those of other New Jersey utilities, this resolution calls on the BRC to consider ways either to
buy out the company or to allow municipalities in its service area to choose another utility.
Memorializes BRC investigation of Rockland Electric and of possible acquisition of Rockland Electric property by another utility.