• Atlantic City Electric to Adjust Rates for Pass-Through Costs

    Jun 29, 2012

    Regulators Authorize 4 Percent Adjustment to Monthly Bills

    MAYS LANDING, N.J. – The New Jersey Board of Public Utilities has authorized Atlantic City Electric to adjust a variety of pass-through charges that appear on customers’ bills. The adjustments include a change to cover the increased cost of long-term power purchase contracts with non-utility generators and rates that fund several statewide societal benefits programs.

    Ordinarily, the company would recover these costs over a 12-month period. But in an effort to mitigate the impact on customers, Atlantic City Electric will recover some of these costs over several years.

    A typical residential customer using approximately 1,000 kilowatt hours per month would see a 4.03 percent increase in the monthly bill. Effective July 1, the total monthly bill would go up by $6.86 per month to $177.08.

    The revenue from these adjustments does not go to the company’s bottom line. These costs are a pass-through to customers. The changes represent a reconciliation of charges, or a true up, that the utility must make periodically to ensure that it is accurately recovering its costs.

    Customers who buy from alternate suppliers will see the same increase. Their new total monthly bill will vary according to the per-kilowatt-hour price charged by their supplier.

    The primary adjustment would be an increase to the Non-Utility Generation Charge associated with long-term power purchase contracts with third-party electricity suppliers.

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    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 547,000 customers in southern New Jersey.