COURT HOUSE – Middle Township Committee has passed a resolution opposing the 17% increase in the electrical supply portion of customers’ bills that was approved by the state Board of Public Utilities earlier this month.

But the resolution, approved on Feb. 19, incorrectly states that Atlantic City Electric asked for the rate increase and implies that the utility’s profits will benefit from it.

The supply component of bills is not set by any of the four electricity distribution companies in the state; it is a result of the power auction process of the PJM Interconnection, the grid operator for all or parts of 13 states, including all of New Jersey.

What the BPU approved was the result of the PJM auction last July and a subsequent state auction, not a request for a rate increase from Atlantic City Electric.

The utility’s monthly bills collect the supply charges for a given customer over a given time period. The amount charged comes directly from the suppliers, and the funds received from the ratepayers are then passed through to the suppliers.

Atlantic City Electric’s revenue and profits depend upon the rates the BPU approves for distribution of electricity to the home, a separate component of a customer’s bill. The utility has asked for an increase of 8% in its distribution rate, but a decision on that request has been deferred by the BPU until April.

Asked about the Middle Township resolution, a spokesperson for Atlantic City Electric said, “We do not generate, set the price for electricity nor determine the supply portion of a customer’s bill.”

Mayor Chris Leusner said he was not in a position to comment specifically on any inaccuracies in the resolution before leaving town on another matter. He said he would do so when he returned.

Leusner said the motivation for the resolution comes from hearing from many township residents who are hard-pressed to deal with the increasing price of electricity.

New Jersey residents do have the option to purchase electricity from a competitive electricity retail supplier, but even then the supply rate would be set by that supplier, as approved by the BPU, and not by Atlantic City Electric.

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