Electric rate increases of today drive long-term customer affordability

As the cold weather moves in and our air conditioners hibernate for the long winter, utility customers likely are not giving much thought to those high electric bills we saw last summer as we all tried to beat the heat.

The state’s electric utilities, though, are already preparing for next summer, and the many summers to follow. The companies are undertaking major projects to further strengthen the power grid, thus ensuring safety and reliability and eliminating the threat of power outages during peak summer months.

To that end, Atlantic City Electric is following a similar path of New Jersey’s other electric companies preparing for the future. The utility has filed a request with the state Board of Public Utilities to recover for infrastructure investments to help ensure the grid can handle the highest-level demand ever and keep rates affordable in the long-term for its customers.

Approval of the filing will provide assurance that the company can invest in its system to meet the new power demand for ever-evolving technologies such as electric vehicles, artificial intelligence, data center expansion, new domestic manufacturing and electrification. According to the federal Department of Energy, these new technologies would drive total energy demand potentially 15-20% higher during the next decade.

It’s no secret that the Southern New Jersey and the Atlantic City area has a growing economy, a larger population, and a corresponding change in consumer adoption of electric products, such as air conditioners, computers and incandescent lighting. Since its last approved rate adjustment, Atlantic City Electric has wisely used the additional resources to finance major projects, resulting in the lowest frequency of electric outages recorded in the region.

In fact, the company used the additional funding to modernize an existing substation and rebuild two critical transmission lines between Atlantic City and Brigantine. It improved the quality of electric service in such vulnerable areas as Long Beach Island, Cape May, as well as upgraded 10 miles of transmission lines between Monroe Township and Pine Hill to improve reliability in Gloucester and Camden counties.

Preparing for the future, the utility also invested in its Smart Energy Network, creating a smarter and more resilient energy infrastructure. And to keep rates down, customers are being given new tools to track hourly usage, high usage alerts, monthly bill projections and real-time home energy reports.

No one likes to pay more for any service. Atlantic City Electric is keenly aware of the customers having difficulty making ends meet and has made available state and local programs to help ease that burden. These utility assistance programs are designed to help those who need it most. Customers can reach out directly to Atlantic City Electric to learn more about customer assistance.

The summer of 2025 will soon be upon us. Ensuring that the lights stay on, and the air conditioners continue to hum across the state of New Jersey, even when the mercury rises on those hot, humid days, is the highest priority an electric company can have. Utilities that ignore customer demand

without investing in their systems are not responsible, reliable partners. And, without careful planning, consumer electricity costs would ultimately be much higher than necessary. The electricity demand in the Atlantic City area is only going to grow from here.

Let us applaud the work of Atlantic City Electric and its 1,000 employees, as they continue to carefully balance consumer costs with the growing energy needs of its customers. It is a true and valued partnership between the company and its customers.

Forward-thinking utilities help communities thrive and prosper, building the resilient infrastructure that will handle energy demand when it is needed the most. Let us recognize the enormous responsibility that New Jersey’s electric utilities have and why forward-looking investments are both smart and proactive.

Richard Henning is the CEO of the New Jersey Utilities Association