For Immediate Release
MAYS LANDING, N.J. - A state-authorized rate adjustment to Atlantic City Electric customers will substantially offset an increase in Basic Generation Service (BGS) scheduled to take effect for residential customers on June 1.
As a result of a filing made by Atlantic City Electric in June 2007, the New Jersey Board of Public Utilities has authorized a decrease to Atlantic City Electric's Non-Utility Generation Charge (NGC) and an increase to the Societal Benefits Charge (SBC) to be collected from all customers for the period of June 1, 2008 through May 31, 2009. The net effect of the SBC and NGC reconciliation process is a refund that will be paid to customers over a 48-month period.
The approved SBC and NGC adjustments, coupled with the credits from the sale of the B.L. England generation facility, will substantially offset this year's BGS increase of 11.21 percent or $17.84 for a customer using 1000 kWh per month. As a result, the overall increase for an average residential customer will be less than 1 percent leaving a modest increase of about $1.25 on a total monthly bill. The BGS increase takes effect on June 1 and will be effective for the next 12 months. BGS prices will be adjusted upward - or downward - thereafter based upon the outcome of a state-authorized auction.
Changes to the components are based on a true up of deferred, actual costs and revenues collected through the current NGC and SBC rates as of March 31, 2008 and forecasted costs and revenues for the period April 1, 2008 through May 31, 2009.
The purpose of the NGC and SBC is to recover certain utility costs. The NGC provides primarily for recovery of the above-market component of payments made under a utility's non-utility generation contracts. The SBC is intended to permit utilities to recover costs related to the Universal Service Fund and Lifeline social programs, the Clean Energy Program, uncollectible accounts and consumer education. This SBC increase is primarily a result of higher 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.
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 540,000 customers in southern New Jersey.