For Immediate Release
Increased Infrastructure Investments is Key Driver
MAYS LANDING, N.J. - Atlantic City Electric has been making significant investments in New Jersey and plans to make additional infrastructure investments of more than $700 million over the next five years to better serve its customers. Today Atlantic City Electric asked the New Jersey Board of Public Utilities (BPU) to authorize a base rate adjustment of approximately $69.7 million to help pay for reliability investments already made. The base rate adjustment is subject to the review and approval of the BPU.
"Atlantic City Electric strives to keep costs to a minimum. However, in order to continue providing quality service, it's important to invest in new infrastructure and upgrade existing electrical systems," said Vince Maione, Atlantic City Electric Region President. "The distribution rate adjustment requested with this filing will enable us to continue our on-going reliability improvement programs to meet our customers' expectations. "
If the rate adjustment is approved as requested, a residential customer using 1,000 kilowatt hours per month would see a total monthly bill increase of $12.69, or $0.42 per day, from $182.00 to $194.69 per month, a seven percent increase over rates currently in effect.
The proposed $69.7 million base rate adjustment reflects rising costs required to provide customers with safe and reliable electric service. Factors include upgrades to existing infrastructure, enhancing the reliability of the distribution system and building new facilities to meet future customer needs in the areas served by Atlantic City Electric. It also includes some system restoration costs associated with the Derecho in July and Hurricane Sandy in October, 2012.
Atlantic City Electric expects to invest approximately $440 million from 2011 - 2013 in new capital infrastructure, a large portion of which is for reliability upgrades servicing homes and businesses across the company's eight-county service area in southern New Jersey.
Distribution rates cover the cost of delivering power, not the cost of the power itself. Customers who buy energy from a competitive supplier continue to receive distribution service from Atlantic City Electric and therefore will be affected by this requested rate adjustment. The new total monthly bill for customers who shop for their energy will vary according to the price charged by the customer's 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 550,000 customers in southern New Jersey.