For Immediate Release
Adjustment of 1.9 percent Helps Cover Cost to Upgrade Infrastructure
MAYS LANDING, N.J. - The New Jersey Board of Public Utilities has approved a distribution rate adjustment for Atlantic City Electric customers effective November 1, 2012. Under the new rates, a typical bill for a residential customer using 1,000 kilowatt hours per month will increase by $3.44 or 1.9 percent.
The approved revenue adjustment reflects the rising cost of providing customers with safe and reliable electric service. Factors include the higher cost of maintaining and enhancing the system of poles, wires and other equipment that delivers electricity to homes and businesses across the company's eight-county service area in southern New Jersey. It also covers restoration costs associated with Hurricane Irene.
"Atlantic City Electric recognizes the impact energy prices have on our customers and we have taken several operational steps and implemented organizational efficiencies to keep our costs to a minimum," said Vince Maione, Atlantic City Electric Region President. "These improvements are designed to enhance reliability and service to our customers."
These delivery rates are just one component of the customer's total monthly bill and cover the cost of maintaining 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 not related to this rate case, represent about 75 percent of the bill. They are adjusted periodically to reflect the cost of power that Atlantic City Electric buys on the wholesale market on behalf of customers who do not choose 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 distribution base rates. The new total monthly bill will vary according to the per-kilowatt-hour price charged by the customer's supplier.
Customers with questions regarding billing and/or the rate adjustment can contact the Atlantic City Electric Customer Care Center at 1-800-642-3780.
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 540,000 customers in southern New Jersey.