Return to Browsing

12 N.J.A.R. 860

Golden Nugget Atlantic City Corp. v. Atlantic City Electric Co
Formats: PDF | DjVu— Help viewing DjVu Files
Citation: 12 N.J.A.R. 860
Decision Date: 1987
Agency: BOARD OF PUBLIC UTILITIES
Synopsis: This case involves a dispute between Golden Nugget Atlantic City Corporation (GNAC) and Atlantic City Electric Company (ACE) regarding which entity should be responsible for the cost of extending ACE transmission lines to GNAC's proposed casino site. GNAC paid ACE the actual cost of extending the lines but never constructed the proposed facility. Because the casino was not built, GNAC never generated the revenue for ACE that would have resulted in the cost of the lines being returned to GNAC. There are no other users for the extended lines. The issue before the administrative law judge assigned to the case was whether three years was a reasonable time period to assess whether GNAC had generated sufficient revenue to recoup the cost of the extension. GNAC argued for using a 10-year period. The judge concluded that three years was a reasonable amount of time to allow .for recovery of cost for a high-demand customer like a casino and that net revenue was an appropriate measure for crediting cost re- covery. The judge ordered ACE to credit against GNAC's payment any net revenues received from the line and retain the remainder of GNAC's payment. Upon review, this initial decision was adopted by the Board of Public Utilities. The Board agreed that three years was a reasonable cost recovery period. GNAC's request for return of the cost of install- ing the line extension was denied. The Appellate Division affirmed the decision of the Board. State of New Jersey 861 Clark E. Alperr, Esq., for petitioner (Greenberg, Margolis, Ziegler, Schwartz, Dratch, Fishman, Franzblau & Falkin, attorneys) Jeffrey W. Meyers, Esq., and Jon R. Mostel, Esq., New York, ad- mitted pro hac vice, for respondent (LeBoeuf, Lamb, Leiby & MacRae, New Jersey attorneys, by William R. Holzapfel, Esq.) Irene Jones-Hart and Menasha J. Tausner, Deputy Public Advocates, for intervenor, Division of Rate Counsel of Department of Public Advocate (Alfred A. Slocum, Public Advocate) Susan Vercheak, Deputy Attorney General, for Staff of Board of Public Utilities (W. Cary Edwards, Attorney General)
Statute(s) Cited: 48:2-27 
Citation Tracker adopted-Bd. of Public Utilities; affirmed -229 N.J. Super. 118 (App. Div. 1988) [Updated through 1991]