1.65 percent electric rate increase takes effect Sept. 1

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HAMILTON TOWNSHIP – Atlantic City Electric announced today (Thursday, Aug. 21) that base electric rates will increase by 1.65 percent effective Sept. 1.

“On August 20, the New Jersey Board of Public Utilities (BPU) announced its approval of a stipulation of settlement in the Atlantic City Electric (ACE) base rate case authorizing ACE to increase its electric distribution rates by $19 million.”

Under the new rates, a typical bill for a residential customer using 1,000 kilowatt hours per month will increase by $2.81 or from $171.73 to $174.54 per month, a 1.65 percent increase over rates currently in effect, according to the utility. The new rates equate to 9 cents per day in increased electric rates.

“Atlantic City Electric strives to keep costs to a minimum,” said Vince Maione, Atlantic City Electric Region president. “However, in order to continue providing quality service, it’s important to invest in new infrastructure and upgrade existing electrical systems.

“The distribution rate adjustment will help enable us to continue our ongoing reliability improvement programs to meet our customers’ expectations.”

Over the past five years the utility has invested approximately $685 million into its electric system.

“Customers are seeing the benefits of this work,” the utility said in a news release. “Customers experienced 11 percent fewer outages and an 11 percent reduction in the length of outages from December 2013 through June of this year.”

Since 2012, ACE has performed reliability upgrades and system improvements on about 150 feeders, higher voltage lines that distribute electricity to customers; installed automated switching technology on about 30 feeders designed to isolate outages and restore power to customers more quickly and upgraded about 165 circuit miles of wire with sturdier wire.

The $19 million base rate increase is about 30 percent of the original request filed March 14 for a base rate adjustment of approximately $61.7 million.

Atlantic City Electric plans to make infrastructure improvements to further improve service reliability for customers by building new and upgrading existing infrastructure; building new substations; replacing transformers, poles, wires and other infrastructure improvements; and replacing wood utility poles with steel poles where warranted.

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 ACE so they also will be affected by this increase.

The new total monthly bill for customers who shop for their energy will vary according to the price charged by the customer’s supplier.

People with questions regarding billing or the rate adjustment can call the Customer Care Center at 1-800-642-3780.

For information about energy assistance programs, see www.nj211.org or call 211, New Jersey’s non-emergency helpline, available 24/7 throughout the state.

For more information about ACE, visit www.atlanticcityelectric.com. 

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