Credit Returned $176 million to Customers During Last 33 Months
MAYS LANDING, N.J. – Atlantic City Electric made a filing today to advise the New Jersey Board of Public Utilities (BPU) that a credit on monthly bills, which during the past 33 months has returned an estimated $176 million to customers, will end May 31. This adjustment, combined with a simultaneous reduction in the state’s Basic Generation Service Reconciliation Charge, will result in an overall increase of less than $1 per month for a typical residential customer, effective June 1.
In 2006, pursuant to the terms of a BPU order, Atlantic City Electric (ACE) customers began receiving the Fossil Asset Sale Credit (FASC), representing the net proceeds from the sale of electric generation assets and emission allowances. The assets covered by the FASC included the Keystone and Conemaugh stations in Western Pennsylvania and the B.L. England generating station in Beesleys Point, New Jersey.
This credit has helped to offset the rising cost of energy for ACE customers in the last few years. The market price of energy this year, as reflected in the Basic Generation Service rate (BGS), is expected to remain steady because the economic recession has served to stabilize and, at least temporarily, ease the upward pressure on electricity prices.
ACE also filed with the BPU for an adjustment to the BGS Reconciliation Charge, which is adjusted periodically to recover the difference between BGS costs and revenue. This adjustment also is effective June 1, 2009.
The expiration of the FASC alone would have increased customers’ bills by about $6.93 per month.
Instead, the offsetting effect of the expiring credit and the adjustment to the BGS Reconciliation Charge will result in an increase of about 72 cents for the average residential customer using 1,000 kilowatt hours per month, from $163.45 per month to $164.17.
Atlantic City Electric, a public utility owned by Pepco Holdings, Inc. (NYSE: POM), provides safe, reliable and affordable regulated electric delivery services to more than 545,000 customers in southern New Jersey.