In the Matter of Murphy, A-4758-10T2; Appellate Division; opinion by Yannotti, J.A.D.; decided and approved for publication June 20, 2012. Before Judges Messano, Yannotti and Espinosa. On appeal from the New Jersey Board of Public Utilities, EO 07050516. DDS No. 37-2-6710 [19 pp.]
The Electric Discount and Energy Competition Act (EDECA), N.J.S.A. 48:3-49 to -98.4, established a framework for deregulating and restructuring the electric utilities industry in New Jersey. It authorized such utilities to recover from ratepayers “stranded costs” it was at risk of losing when the market opened to competition. It defines stranded costs as: the amount by which the net cost of the utility’s generating assets or electric power purchase commitments, as determined by the Board of Public Utilities, exceeds the market value of those assets or contractual commitments in a competitive supply marketplace and the costs of buydowns or buyouts of power purchase contracts.
