For Immediate Release
NJBPU Approves Utility's First Delivery Rate Increase in Nearly Two Decades
Atlantic City Electric customers, only the second requested delivery rate increase in nearly 20 years. The new rates will add about 1.2 percent to monthly residential electric bills, effective June 1, 2010.
The $20 million increase reflects rising costs required to provide customers with safe and reliable electric service. Factors include higher cost of maintaining and enhancing the distribution system throughout the company's eight-county, southern New Jersey territory.
Under the new rates, the typical monthly bill for a residential customer using 1,000 kilowatt-hours a month will increase by $1.92 from $161.18 to $163.10.
"Atlantic City Electric recognizes the impact that higher energy prices have had on our customers in recent years and we have taken several operational steps and implemented organizational efficiencies to keep costs to a minimum. Given these economically challenging times, we remain committed to controlling our operation and maintenance costs," said Atlantic City Electric Region President Vince Maione.
Delivery rates are one component of the company's total monthly bill and cover the cost of continuing to provide customers with safe and reliable service, investments in new technology and improvements to keep pace with growth and increasing demand. Delivery rates reflect about 25 percent of a customer's bill.
Supply rates, which are a separate category and represent about 75 percent of the bill, are adjusted periodically to reflect the cost of power that Atlantic City Electric buys on behalf of its customers, who do not buy power from an alternate supplier. Supply costs are driven primarily by the cost of fuel to make electricity. Customers who buy from a competing supplier will see the same increase in their base rates. Their new total monthly bill will vary according to the per-kilowatt-hour price charged by their supplier.
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.