Atlantic City Electric, which powers homes and businesses across South Jersey, has asked the New Jersey Board of Public Utilities to approve an 8% rate hike.

They say it’s to cover $109 million in upgrades to improve their energy system and reduce outages.

If this is approved, the typical household using 643 kilowatt hours of electricity each month will see its bill increase by around $12.96.

The company says the money will fund projects to strengthen the grid, such as modernizing old substations, adding battery storage systems, and upgrading power lines.

These projects include the Atlantic City/Brigantine Community Reliability Project, where they rebuilt key transmission lines, and the Beach Haven Battery Storage Project, which helps keep power consistent.

In Cape May, they upgraded a substation to improve energy service for that area.

In Gloucester and Camden Counties, they enhanced substations and updated ten miles of power lines to make the system more reliable.

Atlantic City Electric says these improvements have already made a difference.

In 2023, they had the fewest power outages ever reported, improving by 5% over their previous best year, 2022.

They also highlight investments in smart technology, like their Smart Energy Network, which includes smart meters that help people track their energy use and save money.

The company says these changes are part of its plan to prepare for the growing demand for clean energy, including solar power and electric vehicles.

But many people in South Jersey aren’t happy.

Over the summer, some customers saw their bills jump significantly because of an earlier rate increase and high energy use during a heatwave.

Now, Atlantic City Electric wants to raise rates again, and that does not please U.S. Representative Jeff Van Drew.

Van Drew is strongly against this new rate hike.

He says Exelon, the parent company of Atlantic City Electric, uses South Jersey families and businesses as a “piggy bank” to fund projects they should pay for themselves.

Exelon is worth tens of billions of dollars, and Van Drew argues they don’t need to pass these costs onto people already struggling with rising bills.

He’s also upset that some money might be used to build electric vehicle charging stations, saying residents should not have to pay for them.

Van Drew is urging the public to take action by contacting state officials and demanding they reject this rate increase.

He’s also planning to push for a federal investigation into Exelon’s business practices.

However, this isn’t the first time rates have gone up recently.

In June, the NJ Board of Public Utilities approved increases for several power companies in the state.

Atlantic City Electric’s customers saw their bills increase by 4.6%, while other companies, like Jersey Central Power & Light, had even higher increases of 8.6%.

The money was meant to cover higher energy costs and keep services running, but many people feel their budgets are being squeezed.

Atlantic City Electric says the rate hike is necessary to maintain reliable service and invest in the future.

They also offer tools to help customers manage their energy use and lower their bills.

These include alerts for high usage, monthly bill projections, and energy-saving tips.

The New Jersey Board of Public Utilities hasn’t decided yet, but they’ll consider public input before approving or rejecting the increase.

For the time being, South Jersey residents are stuck waiting, wondering how much more they’ll have to pay to keep the lights on.