Cost of Electricity Could Rise Even More

COURT HOUSE – Just one week after the New Jersey Board of Public Utilities (NJBPU) approved a 4.1% hike in Atlantic City Electric’s (ACE) rates for basic generation service, ACE has announced it is seeking to recover $104.8 million through its delivery rate calculation, which, if approved, will result in an additional 8.8% increase in the transmission cost portion of the energy bill.
Atlantic City Electric is one of four electric utility providers in New Jersey. Its service area includes all of Cape May County. The bill consumers receive each month is based on NJBPU-approved rates for two distinct components. The first is supply, the actual generation of electricity. The second is delivery, the transmission of electricity to consumers.
NJBPU confirmed Feb. 8 the results of the annual auction for electricity generation rates, which is what already resulted in the 4.1% increase in those rates set to go into effect June 1 for all homes that elect to have ACE supply their electricity. 
If the consumer elects to have a third-party supplier of electricity, that party’s rates will make up the supply portion of the ACE bill.
ACE is the only provider of electricity delivery services in the county. ACE’s Feb. 15 announcement is that the company is seeking to recover from ratepayers the investments it has recently made in the local energy grid. The company, in a release, points to increased reliability and service due to its grid investments.
These investments include the company’s Smart Energy Network, encompassing the smart meter initiative, along with the EVsmart Program.
It is in this delivery portion of the monthly bill that ACE is seeking NJBPU approval of investment recovery that will, according to ACE’s announcement, cost the typical residential customer using 669 kilowatt hours per month an additional 8.8%, or about $12.22. 
This increase would be separate from and additional to the increase in basic generation costs approved the week prior. The NJBPU has not yet approved this cost recovery request for new delivery rates.