Atlantic City Electric just got a rate increase. This is why it wants another
Atlantic City Electric wants customers to cover the cost of infrastructure upgrades, a price tag that is forecast to add more than $12 to the average monthly bill.
On Wednesday, the utility, which has about 565,000 customers in South Jersey, including southern Ocean County, asked the New Jersey Board of Public Utilities for permission to recover $104.8 million from electric bill payers. Those costs helped to pay for upgrades that strengthened the electric grid and provided technological enhancements, such as smart grid equipment and smart meters, as well as repairs from storms, Atlantic City Electric said.
If approved as is by regulators, an average Atlantic City electric customer who uses 669 kilowatt hours per month will see monthly bills rise by 8.8%, or about $12.22, to $151.04. The increase would come through the utility's delivery rate, which it uses to pay its expense and fuel its profit.
Higher electricity costs are already expected to shock bills.
Last week, the BPU said Atlantic City Electric customers will see their monthly electric bills rise by 4.1%, as of June 1, a result of higher wholesale electricity prices. Those wholesale costs, decided by the state's annual energy auction, are passed straight through to customers.
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Atlantic City Electric said its investments, new technology and energy efficiency programs have helped customers cut their energy usage and better manage their costs. As a result of efforts to modernize the electric grid, customers in 2022 experienced the lowest frequency of outages on record, the utility said.
Ongoing investments have reduced the frequency of electric outages by more than 75% since 2012, the utility said.
"Customers are relying on us to deliver a world-class customer experience with safe, affordable and reliable energy while balancing the need for continued modernization of the local energy grid," said Doug Mokoid, Atlantic City Electric region president, in a statement.
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David P. Willis: dwillis@gannettnj.com
This article originally appeared on Asbury Park Press: Atlantic City Electric: Proposed rate increase will cut down blackouts
