Skip Ribbon Commands
Skip to main content

For Immediate Release


Atlantic City Electric Seeks Rate Adjustments for Pass-Through Costs

Proposed 3 Percent Adjustment Aims to Soften Impact on Customers' Monthly Bills

MAYS LANDING, N.J. - Atlantic City Electric today asked the New Jersey Board of Public Utilities (BPU) to adjust several pass-through charges that appear on customers' bills. The adjustments include a change to address 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, the company is proposing to recover some of these costs over four years.

If approved by the BPU, a typical residential customer using approximately 1,000 kilowatt hours per month would see a 3 percent increase in the monthly bill. The total monthly bill would go up by $5.45, from $180.18 to $185.63, effective June 1, 2012.

The proposed rate changes are subject to regulatory review and approval. The revenue from these adjustments does not accrue 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. Atlantic City Electric customers cover the above-market costs of these long-term agreements.


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.

© Atlantic City Electric Company, 2023. All Rights Reserved.