With $70 Million in storm costs, it’s no real shocker that Atlantic City Electric is raising distribution rates. The Pepco owned utility will be tacking on a $.004 charge, or about $4.44 to the average (1,000KWh) bill. This will increase the typical user’s rate by 2.8%.
This rate increase is part of the delivery charges (the part that users can’t opt out of) and will generate about 25 million for the utility. The money will go to rebuilding infrastructure and continued improvements post Super Storm Sandy.
Originally, the utility filed a rate petition in December for 7%, seeking 70 Million. All in all, the new rate is a fair comprise which helps repair the damages which not over-burdening ratepayers. Atlantic City Electric serves just over ½ million residents.