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3 More Towns OK Flawed Resolution Opposing Electricity Rate Hike

3 More Towns OK Flawed Resolution Opposing Electricity Rate Hike

By Vince Conti

Three more Cape May County towns have passed a county-drafted resolution opposing the 17% increase in the electricity supply rate that was approved by the state Board of Public Utilities.

But when Stone Harbor considered the resolution at its March 4 meeting, council member Ken Biddick urged the council to table it. Biddick pointed to major inaccuracies in the resolution that the three towns -Cape May, Upper Township, Lower Township – passed this month. Middle Township approved the resolution in February.

The Stone Harbor council followed Biddick’s advice.

The resolution asks that the 17% rate increase “requested” by Atlantic City Electric be denied or withdrawn. The problem is that Atlantic City Electric never requested that rate increase.

The utility also does not financially benefit from the increase – as the resolution says it does – even though it collects the supply portion of a customer’s bill through its billing process.

The supply rate is the result of an auction process conducted by the PJM Interconnection, the electricity grid operator for all or parts of 13 states, of which New Jersey is one, and subsequently approved by the BPU. The 17% increase goes into effect June 1.

Biddick pointed out the inaccuracies in the resolution and persuaded his fellow council members to table it in Stone Harbor. It appears to be passing without question in other county towns.

There is also a portion of the resolution that asks Atlantic City Electric and the BPU to not enact a requested 8% hike in the utility’s electricity distribution charge, which is under ACE’s control. The BPU is scheduled to decide about that request in April.

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

Reporter

Vince Conti is a reporter for the Cape May County Herald.

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