By Julia Train
In a Feb. 12 news release, the New Jersey Board of Public Utilities (NJBPU) announced cost increases for electricity supplied to most residents and small- to medium-sized businesses by New Jersey’s four regulated Electric Distribution Companies (EDCs).
The price hike is a result of New Jersey’s 24th annual electricity auction for Basic Generation Service (BGS). The increase will affect most residents and small- to medium-sized businesses and is set to start on June 1.
Atlantic City Electric (ACE), which services a large portion of South Jersey, will see a 17.23% increase in electricity supply rates.
Customers served by PSE&G are expected to see a 17.24% rise. JCP&L customers will face a 20.20% elevation, and RECO customers will experience an 18.18% inflation.
“The supply rate, determined through this auction and the PJM Base Residual Auction (BRA), is the cost of the electricity a customer uses, and that rate changes based on the purchase cost of electricity are reflected in the auction. The supply and demand of electricity influences the auction prices,” the utility company said in a statement to Shore Local. “This supply portion of a customer’s bill is passed directly to the customer from the generators of electricity, not Atlantic City Electric. Atlantic City Electric does not generate, set the price for electricity nor determine the supply portion of a customer’s bill. Atlantic City Electric delivers that electricity to our customers safely and reliably.”
The increase in auction prices comes despite extensive advocacy efforts from the Murphy Administration and other states within the PJM Interconnection region, which have been struggling with escalating electricity prices.
PJM is a regional transmission organization (RTO) that coordinates the movement of wholesale electricity in all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia.
“Once again, Atlantic City Electric is trying to lay the burden of failed energy solutions and misguided mandates at the feet of the ratepayer,” stated Senator Vince Polistina in a Feb.12 news release. “Our focus should be on real solutions to increase the energy we produce in New Jersey, so our residents don’t have to pay more for energy created elsewhere. Additionally, Atlantic City Electric also has an obligation to make it easier for customers to be their own ‘energy advocates’ and ease their ability to connect their solar to the power grid.”
ACE shared its enhanced support measures for customers to manage their winter energy bills and provide relief from high costs due to extreme cold, increased usage and the overall cost of energy. The company is also introducing new bill assistance and payment flexibility options to better support customers.
With expanded customer support options, ACE will implement:
- No late payment fees for January and February 2025 with extended repayment periods of up to 24 months.
- Suspension of disconnections for nonpayment in February 2025.
- Waiving deposit requirements for customers seeking to restore service after disconnection.
Additionally, Atlantic City Electric customers are encouraged to explore resources at atlanticcityelectric.com/BillSupport that can help lower monthly bills, such as:
- Energy efficiency programs
- Financial assistance options
- Billing and payment flexibility tools
