For Immediate Release
Mays Landing, N.J. - Atlantic City Electric filed today with the New Jersey Board of Public Utilities for permission to reset two billing components. The utility is asking for a decrease to the Net Generation Charge (NGC) and an increase to the Societal Benefits Charge (SBC) to be collected from all customers for the period of October 1, 2007, through September 30, 2008.
The net impact of the proposed adjustments will provide an overall rate decrease of approximately $131.8 million. The estimated savings for an average residential customer using approximately 1,000 kWh per month is about $12.87 or 8.57% on a total monthly bill.
The proposed changes to the rates are based on a true up of deferred actual and estimated costs and revenues collected through the current NGC and SBC rates as of September 30, 2007, and forecasted costs and revenues for the period October 1, 2007, through September 30, 2008.
The purpose of the NGC and SBC rate components is to recover, on an unbundled basis, certain utility costs and expenses. The NGC provides primarily for recovery of the above-market component of payments made under a utility's Non-Utility Generation (NUG) contracts and stranded costs associated with such commitments. The SBC is intended to permit utilities to recover costs related to:
· Universal Service Fund and Lifeline social programs· Clean Energy Program· Uncollectible Accounts · Consumer Education
· Universal Service Fund and Lifeline social programs
· Clean Energy Program
· Uncollectible Accounts
· Consumer Education
In this filing, the increase to the SBC is due to the increased costs associated with funding the New Jersey Clean Energy Program, which is administered statewide by the Board of Public Utilities' Office of Clean Energy, through 2008. The final amount of any adjustment to customer rates as proposed by the Atlantic City Electric is subject to review and approval of the New Jersey Board of Public Utilities.
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 500,000 customers in southern New Jersey.
Forward-Looking Statements: Except for historical statements and discussions, the statements in this news release constitute "forward-looking statements" within the meaning of federal securities law. These statements contain management's beliefs based on information currently available to management and on various assumptions concerning future events. Forward-looking statements are not a guarantee of future performance or events. They are subject to a number of uncertainties and other factors, many of which are outside the company's control. Factors that could cause actual results to differ materially from those in the forward-looking statements herein include general economic, business and financing conditions; availability and cost of capital; changes in laws, regulations or regulatory policies; weather conditions; competition; governmental actions; and other presently unknown or unforeseen factors. These uncertainties and factors could cause actual results to differ materially from such statements. PHI disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This information is presented solely to provide additional information to further understand the results and prospects of PHI.