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Attention Atlantic City Electric Customers: Your Rates Are Increasing This Summer
Key Takeaways
- Effective June 1, 2025, Atlantic City Electric's (ACE) "Price to Compare" (PTC) has increased, with the rate for usage over 750 kWh rising to 18.920 cents/kWh. This change could lead to a total bill increase of approximately 17.2%, or about $28 per month for the average customer.
- The rate hike is a direct result of state-run electricity auctions, driven by rising wholesale energy costs (especially for natural gas), increased regional electricity demand from sources like data centers, and the costs of ACE's grid modernization efforts.
- Residents can mitigate the impact by reducing their energy usage through a no-cost Whole Home Energy Assessment from ACE, adjusting thermostats, sealing air leaks, and unplugging electronics.
- Customers facing hardship can access assistance through programs like LIHEAP, USF, and PAGE, as well as by setting up payment plans directly with ACE. Additionally, residents can compare and switch to a third-party electricity supplier to lock in a lower fixed rate and potentially save on their bills.
Table of Contents
Atlantic City Electric (ACE) customers in New Jersey are about to see a significant change on their monthly bills. Effective June 1, 2025, ACE’s “Price to Compare” (PTC) is increased, which will directly impact customers who haven’t switched to a third-party electricity supplier. This rate hike is part of a broader trend affecting utilities across the state, and understanding it is key to managing your household budget.
What's the New Price to Compare and How Much Will Bills Go Up?
The new residential Price to Compare for Atlantic City Electric is set to be 18.920 cents per kilowatt-hour (kWh) from June 1, 2025 – September 30, 2025 for usage over 750 kWh per month and 17.920 cents per kilowatt-hour (kWh) for usage under 750 kWh. This marks a substantial increase from previous rates.
For an average customer, this rate increase, combined with other utility cost adjustments, could lead to a bill increase of approximately 17.2%, or about $28 more per month. This estimate is based on an average household using around 650 kWh of electricity per month, so your actual bill increase may vary depending on your usage, especially during the hot summer months when air conditioning is running.
| Price to Compare Effective Date Range | Price to Compare (rate per kWh) |
|---|---|
| October 1st, 2024 - May 31st, 2025 | 18.79¢ |
| September 1st, 2024 | 15.00¢ |
| June 1st, 2024 - September 30th, 2024 | 18.92¢ |
| October 1st, 2023 - May 31st, 2024 | 13.22¢ |
| June 1st, 2023 - September 30th, 2023 | 13.76¢ |
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Why Are Electricity Rates Increasing?
This rate increase is not a decision made solely by Atlantic City Electric; it’s a pass-through of charges determined by the state’s annual electricity auctions for Basic Generation Service (BGS). The factors driving up the prices in these auctions include:
- Rising Wholesale Energy Costs: The cost of wholesale electricity, particularly natural gas, is a primary driver. As demand for natural gas increases and the market remains volatile, the price utilities pay to procure power also rises.
- Increased Demand: The regional grid operator, PJM, has cited a rapid growth in electricity demand, especially from new data centers, as a significant factor. This surge in projected demand has led to higher prices in the capacity market auctions, where utilities buy energy in advance.
- Grid Infrastructure and Modernization: ACE has also requested a separate distribution rate increase to recover costs for investments in its “smart network” and other infrastructure projects aimed at improving reliability and resilience.
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Actions You Can Take to Reduce Your Usage and Bills
While the rate increase is a reality, there are several actions you can take to mitigate its impact on your bill:
- Schedule a Whole Home Energy Assessment: ACE offers a no-cost Whole Home Energy Assessment where a certified energy analyst will inspect your home, install free energy-saving products like LED bulbs and smart power strips, and provide a report with personalized recommendations for efficiency upgrades.
- Adjust Your Thermostat: In the summer, set your thermostat a few degrees higher, and consider using a smart or programmable thermostat to automatically adjust temperatures when you’re away or asleep.
- Seal Air Leaks: Use caulk and weatherstripping to seal leaks around windows, doors, and other openings to prevent conditioned air from escaping.
- Unplug Electronics: Unplug “vampire” devices that draw power even when turned off, or use smart power strips to cut power to multiple devices at once.
- Shop for a New Supplier: As a resident of New Jersey’s deregulated market, you have the power to choose your electricity supplier. The ElectricityRates.com marketplace makes it easy to compare electricity provider rates to ACE’s Price to Compare. In just a few minutes, you can find a fixed-rate plan that could offer significant savings and protect you from future rate fluctuations.
Financial Assistance for ACE Customers
If you are struggling to pay your bill, Atlantic City Electric and the State of New Jersey offer several programs to help:
- Low-Income Home Energy Assistance Program (LIHEAP): This federal program provides grants to eligible low-income households for heating and cooling costs.
- Universal Service Fund (USF): This program helps make energy bills more affordable for low-income households.
- Payment Assistance for Gas and Electric (PAGE): PAGE provides relief for low-to-moderate-income households facing a temporary financial crisis.
- Payment Plans: Contact ACE’s customer service to discuss flexible payment arrangements or extensions to help you manage a past-due balance.
For more information on these programs and others, visit ACE’s website or contact their customer care center at 1-800-642-3780.