It seems we cannot get away from the topic of electricity prices. Rep. Jeff Van Drew is calling on the state Board of Public Utilities to hold public hearings on the subject. State Sen. Michael Testa and three Republican colleagues from Atlantic County are urging legislative hearings. Atlantic City Electric is providing inconsistent information on the specific level of rate hikes in the last year.
On Aug. 1 the company acknowledged that the last year saw an 18% increase in electricity rates. On Aug. 28, Exelon, the parent company of ACE, confirmed the 18% figure. Then, on Aug. 30, ACE sent a new communication to customers, saying the hikes in the last year amounted to 20%. This is unusual in a business where any change in the rates charged to customers goes through a review and approval process with the BPU. So why would they not know exactly what rate changes went into effect in a specific period?
Van Drew and Testa both don’t believe these numbers from ACE, arguing that large numbers of customers have called their offices to say bills have doubled or worse since the summer of 2023. The utility blames record heat and higher levels of use.
It is only going to get worse. The most recent wholesale electricity rates for a 13-state area that includes New Jersey soared tenfold over the wholesale prices at the 2023 auction. These new auction rates will impact retail rates in 2025.
Industrywide we hear about the dramatic rise in electric power use due to mammoth data centers running artificial intelligence software. We also see rising demand due to federal and state policies that are trying to force a retreat from fossil fuel.
Jason Shaw of the Georgia Public Service Commission says the situation has “created a challenge like we have never seen before.” Prices have or soon will begin to reflect these realities, with residential ratepayers stuck with the bill.
Delays in hitting targets for power generation from green sources are also forcing power generators to turn back to fossil fuel plants, many of which were on their way to being decommissioned. According to the Energy Information Administration, New Jersey consumes much more electric energy than it produces, drawing power from other states via the regional grid.
A failure to better match demand and supply will impact prices everywhere in an interdependent power grid.
