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Atlantic City Electric has filed a request with the New Jersey Board of Public Utilities to raise its electricity rates by eight percent. The proposed increase is intended to cover $109 million in infrastructure improvements aimed at enhancing the delivery of energy and reducing outages. If approved, the average residential customer would see a monthly bill increase of approximately $12.96, according to the company's statement.
The infrastructure work includes significant projects to strengthen the grid, which resulted in the lowest frequency of electric outages ever in 2023. The projects include the Atlantic City/Brigantine Community Reliability Project, which modernized an existing substation and rebuilt two critical transmission lines between Atlantic City and Brigantine. Other projects include the Beach Haven Battery Storage Project, the Cape May Substation Reliability Project, and the Greater Gloucester and Camden Counties Reliability Project.
The company's investments also include the creation of a Smart Energy Network, which aims to create a smarter and more resilient energy infrastructure while providing new tools that enhance customer experience. These tools include an hourly usage feature, high usage alerts, monthly bill projections, and home energy reports and tips. The smart meters can enable more efficient integration of new energy technologies and connect more customers to a variety of clean energy choices, such as solar, electric vehicles, and the recently expanded energy efficiency program.
Phil Vavala, Atlantic City Electric region president, said in a statement to NJ.com, "Rate adjustments help ensure the lights stay on when a customer needs them, that energy service is delivered safely and that we can be a resource for our communities." He added that the company is committed to meeting customers' growing energy needs while balancing costs and providing tools that help save customers energy and money.
The rate adjustment request comes after a summer when customers saw unexpectedly high bills. The proposed increase is currently under review by the New Jersey Board of Public Utilities.