For Immediate Release
Investments Will Enhance Safety and Reliability, Create Jobs and Spur Sagging Economy
MAYS LANDING, N.J. - Atlantic City Electric will accelerate the investment of $27.6 million for a series of 16 improvement projects to enhance the safety and reliability of its electric distribution system, under an agreement approved today by the New Jersey Board of Public Utilities.
The initiative, which will directly create an estimated 92 jobs in the state, will enhance the system and spur economic activity at a time when employment in the state is down. These projects respond to Gov. Jon Corzine's request that New Jersey utilities accelerate spending on capital improvement projects to help provide economic stability in the state.
"New Jersey recognizes the important role Atlantic City Electric plays in the region and we're pleased to be a part of this effort to revitalize the state's economy and enhance service to our customers," said Ken Parker, President, Atlantic City Electric Region. "We applaud Gov. Corzine and the New Jersey Board of Public Utilities for their effort, which will benefit our customers and citizens across New Jersey."
Jeanne M. Fox, President of the New Jersey Board of Public Utilities, explained the state's approach.
"These projects were carefully reviewed against strict criteria," President Fox said. "By expediting spending on identified infrastructure needs, these projects can provide important support for our economy now, as requested by Governor Corzine, while ensuring a reliable and secure energy supply for future economic growth. In addition, by putting many of these projects out to bid in a slow economy, this work can be completed at a lower cost to ratepayers."
Under the agreement between Atlantic City Electric, the New Jersey Board of Public Utilities Staff and representatives from the Division of Rate Counsel, the utility will accelerate spending on a variety of infrastructure projects originally scheduled for 2011 through 2013. Under this plan they are scheduled for 2009 and 2010. The projects will be paid for through a surcharge on customers' bills. A typical residential customer using 1,000 kilowatt hours will receive a rate increase of 6 cents per month or .04 percent. The Board will monitor implementation of each utility's infrastructure projects by submission of a quarterly report.
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 545,000 customers in southern New Jersey.