Utility Requests 4.1 Percent Increase Due to Increased Investment and Higher Costs
MAYS LANDING, N.J. – Atlantic City Electric today asked the New Jersey Board of Public Utilities (BPU) to authorize an increase in annual distribution rates. Distribution rates cover the cost of delivering power, not the cost of the power itself. If approved, the change would add about 4.1 percent to monthly residential electric bills and is expected to become effective in 2012. The typical monthly bill for a residential customer taking Basic Generation Service and using 1,000 kilowatt-hours a month would increase by $7.57 from $182.51 to $190.08.
The proposed $58.89 million rate increase reflects rising costs required to provide customers with safe and reliable electric service. Factors include replacing electric infrastructure, enhancing the reliability of the distribution system and providing for future growth in the number of customers.
Customers who buy from a competing supplier will see the same increase in their base rates. Their new total monthly bill will vary according to the per-kilowatt-hour price charged by their supplier.
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 548,000 customers in southern New Jersey.