For Immediate Release
Electric Utility Bills to Decrease About $6.00 a Month
MAYS LANDING, N.J . - Electricity supply rates will decrease for Atlantic City Electric customers this summer because of lower-priced contracts taking effect June 1, 2011. Residential customers using an average of 1000 kilowatt hours of electricity a month will see their bills decrease by about 4.5 percent, from $188.62 to $182.80, resulting in a monthly savings of $5.80.
The rate decreases are a result of lower commodity fuel prices, which were obtained through a competitive bid process to supply electricity to Atlantic City Electric's Basic Generation Service customers. Supply refers to the generation of electricity. Under deregulation, customers can choose to buy electricity from competing suppliers. Or, if they do not choose an alternate supplier, the utility buys power for them and passes along the cost. This is called Basic Generation Service.
Supply rates represent about 66 percent of the bill and are adjusted periodically. Supply costs are driven primarily by the cost of fuel to make electricity. Delivery rates, including distribution service charges and other surcharges, reflect the remaining 34 percent of a customer's 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.
"Given these economically challenging times, this is certainly good news for our customers," said Vince Maione, Atlantic City Electric Region President. "We also encourage customers to conserve energy to help further reduce their monthly bills."
For information on saving energy and money in homes or businesses or choosing an alternate supplier, customers should visit www.atlanticcityelectric.com. The company also offers its customers Budget Billing, a fixed payment plan based on the customer's 12-month average bill, which they can enroll either online or by contacting Atlantic City Electric at 800-642-3780.
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.