As previously reported here on FAA News, JCP&L has decided that they have been erroneously underbiling Gold Star Caterers (Eagle Ridge) for a number of years and as a result they are threatening to shut off the electricity unless payment is immediately made in full.
According to the court filing by Somerset Attorney Shaun I. Blick, Esq.:
Gold Star is a well-known and highly respected catering business in the Lakewood, New Jersey area.
JCP&L recently sent Gold Star a “Rebill Statement” in the amount of $321,546.59.
JCP&L’s explanation for this “Rebill Statement” with such a high amount is the purported recent “finding” which revealed that going back as far as June 4, 2019, JCP&L was applying an incorrect multiplier constant of 80, rather than 320.
The sole reason provided by JCP&L for the increase was that the “Meter had incorrect CT’s since original move in date, verified by field worker.”
This is no small error, even assuming that the new multiplier constant is correct in the first instance. Indeed, this error was made solely at the hand of JCP&L and without any factual justification.
This is an egregious error that is in no way the fault of Gold Star, and therefore, it should have no responsibility.
On July 18, 2024 Plaintiff sent to both JCP&L and the Board of Public Utilities (BPU) a letter serving as a complaint and detailing the bases thereof.
The letter highlighted that the matter arises from JCP&L’s error in calculating Gold Star’s electric usage by using an improper meter constant and now, years later, attempting to recoup the purported charges arising from its own neglect.
Pertinently, the complaint that the applicable JCP&L Tariff does not permit a billing adjustment under the circumstances wherein JCP&L committed the kind and magnitude of error such as here. (The applicable Tariff permits JCP&L to perform a billing adjustment under the limited circumstance wherein a meter is registering inaccurately as a consequence of a defect in equipment. This circumstance, which would otherwise be a permissible billing adjustment, does not exist here).
According the BPU’s Bill of Rights, utility service may not be turned off until the utility company has investigated the disputed charges.
Rather than respond to Plaintiff’s July 18, 2024 letter and argument therein, on August 7, 2024 JCP&L sent Gold Star a termination notice threatening to shut off Gold Star’s electric services for “non-payment."
This is in violation of the BPU’s Bill of Rights dictates.
In response, and out of abundance of caution, on August 9, 2024, Gold Star again submitted to the BPU through its online complaint portal a formal complaint detailing the above-referenced facts and requesting an investigation.
Now attempting to mitigate their own error by punishing Gold Star (with threatening to shut off the electricity) has no legal justification.
There is simply no basis in law or fact for the unconscionable billing practices of JCP&L and now the draconian measure of trying to shut off Gold Star’s electric services.
JCP&L must own its own human error in applying the wrong meter constant and cannot now punish the small business Gold Star to the tune of over $425,025.06, which is now the increased amount alleged in non-payment appearing on the Notice of Termination and which is the result of JCP&L’s sole negligence.
Just days ago, Gold Star filed a Verified Complaint and order to show cause seeking an injunction as to the threatened shutoff of utilities, contending it is barred by regulation while the matter is being investigated.
At an emergency hearing held on Friday morning, a Deputy Attorney General representing BPU opposed the motion, arguing that prior to seeking judicial relief, individuals first need to exhaust administrative remedies, which, in this case means filing a complaint with BPU and that process is already pending.
Judge Hodgson agreed that BPU has primary jurisdiction over this matter and they should be the ones to adjudicate the disputed bill.
However, Judge Hodgson also agreed with Gold Star that the looming termination of electricity would be a disaster for their business.
Accordingly, Judge Hodgson granted immediate restraints enjoining a shut-off. However, this relief will only last for 30 days. On September 12, 2024, Gold Star will need to return to court and show cause why the matter should not be transferred entirely to BPU. (At that point the restraints enjoining a shut-off could be terminated).
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