Atlantic City Electric Basic Generation Service Approved, Customers’ Bills to Decrease 5.3 Percent

MAYS LANDING — The New Jersey Board of Public Utilities (BPU) recently approved the Basic Generation Service (BGS) supply rates and decreases in distribution pass-through charges that appear on an Atlantic City Electric (ACE) customer’s bill. Starting June 1, 2017, a typical BGS residential customer using 716 kilowatt hours per month, will see a total monthly bill decrease of $7.21, from $136.90 to $129.69, a 5.3 percent decrease over rates currently in effect. The two drivers of this decrease include lower energy supply rates and an adjustment to pass-through distribution charges.
The energy supply rate decrease of $4.65 per month or 3.4 percent is a result of the BPU’s annual BGS Auction, a competitive bid process that determines the energy supply portion of the bill for ACE’s BGS customers. Lower wholesale power prices, driven by lower natural gas prices are resulting in electricity savings for ACE residential BGS customers.
Customers who receive their energy supply from an alternative or third-party energy provider will not be affected by this rate change.
The BPU has also approved ACE’s petition seeking the Board’s approval to adjust pass-through distribution charges that appear on customers’ bills including the Non-Utility Generation Charge and Societal Benefits Charge. These charges are reviewed and updated on an annual basis through periodic filings to the BPU.
Due to decreases in these charges, a typical residential customer using 716 kilowatt hours per month, will see a total monthly bill decrease of $2.56, or 1.9 percent. All ACE residential customers will benefit from this bill decrease regardless if they are a BGS customer or utilize a third party supplier.
Distribution rates cover the cost of delivering power. All electric customers in the ACE service area receive electric distribution service from ACE, even if they buy their energy from a third-party supplier.
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