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For Immediate Release


Atlantic City Electric Average Monthly Bill to Decrease

MAYS LANDING, N.J. - The New Jersey Board of Public Utilities (BPU) has approved Atlantic City Electric's (ACE) petition seeking the Board's approval to adjust several pass-through charges that appear on customers' bills including the Non-Utility Generation Charge, Societal Benefits Charge and System Control Charge. These charges are reviewed and updated on an annual basis through periodic filings to the BPU.  

A typical residential customer using 1,000 kilowatts hours per month will see a total monthly bill decrease in the next billing cycle of $4.55, from $170.34 to $165.79, a 2.6 percent decrease over rates currently in effect.

Supply refers to the generation of electricity. Under deregulation, customers can choose to buy electricity from competing suppliers. Or, if they do not choose a third-party supplier, the utility buys power for them and passes along the cost. This is called Basic Generation Service (BGS).

ACE's BGS customers using an average of 1,000 kilowatt hours per month will also see an additional total monthly bill decrease of approximately $1.64, or about 1 percent.

This rate decrease resulted through the annual BGS Auction, a competitive bid process that determines the supply portion of the bill for ACE's BGS customers. Customers who receive their energy supply from an alternative or third-party energy provider will not see the BGS decrease in their monthly bill.

Supply rates and other items represent about 75 percent of a customer's bill and are adjusted periodically. Supply costs are driven primarily by the cost of fuel to make electricity.

Distribution rates cover the cost of delivering power. All electric customers in the ACE service area receive electric distribution service from ACE, even if they buy their energy from a third-party supplier. Distribution rates represent approximately 25 percent of a customer's total bill, depending on the electricity supplier used by the customer.

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