The state Board of Public Utilities has put off until April a decision on a rate increase requested by Atlantic City Electric that would raise a typical homeowner’s bill by about 8%.

The agency at its meeting Dec. 18 set a four-month period during which it will review ACE’s request to increase its distribution rate.

ACE said Dec. 18 that the rate increase was proposed to allow the company to recover costs for “investments made to our infrastructure, including system upgrades and energy system enhancements.”

In announcing the rate filing in November, the company said, “Should the rate increase be approved, a typical residential customer would see a monthly bill increase of about 8%, or $12.96 for 643 kilowatt hours per month.”

The proposed increase in the distribution charge is separate from a possible increase in the supply rate for electricity. The supply rate is influenced by the PJM Interconnection’s capacity auctions, the most recent of which saw a hike in capacity cost of ninefold over the previous auction.

Generally, supply-rate increases go into effect around June 1. A proposed delay in the PJM capacity auction has been supported by the BPU, but it remains unclear how the already held auctions for the period June 1, 2025, to May 31, 2026, will affect supply rates.

In South Jersey, Rep. Jeff Van Drew (R-2) has led a crusade to halt further increases in electricity rates. Van Drew said he is in this fight with the utility after hearing from thousands of residents who reported skyrocketing electricity bills this summer.

On the BPU’s delay on the ACE rate-hike request until spring, Van Drew said, “It is more important now than ever that we keep the pressure on the NJBPU to show them a rate increase is not in the best interest of our residents.”

The congressman recently met with ACE officials and officials of its parent company, Pepco Holdings, on steps the company can take to protect ratepayers. Pepco Holdings Chief Executive Officer J. Tyler Anthony told Van Drew that the company will conduct a billing audit and investigate specific instances of overbilling allegations.

ACE points to the low frequency of electricity outages in 2023, which company officials say was because of the infrastructure investments for which they are now seeking expense recovery.

Contact the reporter, Vince Conti, at vconti@cmcherald.com.