For Immediate Release
Estimated 5.5 Percent Increase to Cover Pass-Through Costs
MAYS LANDING, N.J. - The New Jersey Board of Public Utilities (BPU) recently authorized Atlantic City Electric to make several rate adjustments that would result in an estimated 5.5 percent increase to customers' bills effective Jan. 1, 2011.
The utility does not earn a profit on the items included in the rate adjustments. They represent a pass-through of costs which include the Non-Utility Generation Charge (NGC), Societal Benefits Charge (SBC) and the System Control Charge (SCC). These components address the increased cost of long-term power purchase contracts with non-utility generators, funds for several state-wide societal benefits programs and operating costs associated with the Company's Residential Appliance Cycling Program.
These adjustments are a result of a filing made by Atlantic City Electric in May 2009. This is the first overall increase to the combination of NGC, SBC and SCC rates in several years. In fact, the combination of rate changes that went into effect on June 1, 2008 resulted in a decrease of approximately $11.77 per month or 7.84 percent for a "typical" residential customer using 1,000 kilowatt hours per month.
Part of the current approved increase is the discontinuance of a credit in the NGC which has been in place since June 1, 2008. At that time, the BPU authorized several changes to the NGC and SBC rates, including a four-year credit to return the over-recovered NGC deferred balance to customers. The total credit had been returned to customers as of May 31, 2010.
The rate adjustments approved by the BPU are based on projected deferred balances as of Nov. 30, 2010, and projected expenses for the period of Dec. 1, 2010 through May 31, 2012, resulting in a total of $123.016 million to be recovered through the NGC and $32.371 million to be recovered through the SBC over 18 months.
The net impact of adjusting these components and discontinuing the NGC credit is an overall rate increase of approximately 5.5 percent per month for a typical residential customer using 1,000 kilowatt hours per month. The monthly bill would increase by $9.88 from $178.74 per month to $188.62 with a proposed effective date of Jan. 1, 2011.
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.