Last November, Atlantic City Electric filed a request with the state Board of Public Utilities for an 8% increase in the distribution rate for electricity. Almost a year later that request is still pending.
The filing included recovery of costs for what ACE terms “major projects to strengthen the grid in South Jersey.” The projects listed included modernization of substations in Brigantine, Cape May City and a substation supporting Gloucester and Camden counties.
The filing also includes ongoing cost recovery for ACE’s Smart Energy Network, the installation of smart meters across the utility’s service area.
ACE’s announcement of the rate increase request stated that the monthly increase for a typical customer using 643 kilowatt hours per month would be about $12.96.
Soon thereafter, a series of shockwaves boomed through New Jersey in the form of a significant backlash caused by rapidly rising supply-side increases in electricity rates, rates not under ACE’s control.
On July 30, 2024, just a few months before ACE requested the distribution rate increase, the regional capacity auction for the 2025-2026 delivery year soared from a total $2.2 billion the previous year to $14.7 billion for the coming year.
It was the start of a spiral in supply prices that had a major impact on New Jersey ratepayers. Another auction in July 2025 for the 2026-2027 delivery year set new records again.
Politicians ran for cover and loudly blamed the regional grid operator, PJM Interconnection. PJM in turn pointed to policies in the states that it said aggressively reduced power generation from fossil fuel sources prematurely. While all the finger-pointing went on, the rates paid by households in the Garden State rose substantially.
Republicans in the state, including District 2 Rep. Jeff Van Drew, called for the members of the BPU to resign for failing to maintain a lid on price increases and uncritically supporting an offshore wind strategy that had a slew of its own problems.
In all this time the 8% increase requested by Atlantic City Electric remained live but faded into the background.
A check with ACE on the status of the 8% rate increase filing elicited the following: “Atlantic City Electric continues to have productive conversations with the Board of Public Utilities and other parties regarding our pending base rate case filing.”
The utility says it remains “committed to transparency and will provide additional updates as we work toward a final agreement that manages bill impacts while supporting the area’s growing energy needs.”
It is not clear whether there will be a BPU ruling in time for it to be a factor in the November election.
Contact the reporter, Vince Conti, at vconti@cmcherald.com.
