State of New Jersey
Department Of The Public Advocate
240 West State St.
P.O. Box  851  
Trenton, NJ 08625-0851
Phone: (609) 826-5090    Fax: (609) 984-4747


For Immediate Release: 
August 15, 2007
Public Advocate

For Further Information

Nancy Parello:

Robyn Roberts
(Rate Counsel)
Tel: 973-648-2290

Public Advocate Says Atlantic Electric's Proposal
Would Cost South Jersey Ratepayers More

Proposed Plan Would Increase Rates by $91.5 million

Newark, N.J.—New Jersey Public Advocate Ronald K. Chen today announced the filing of a brief that urges the Board of Public Utilities (BPU) to deny Atlantic City Electric’s request to increase the amount of costs that are subject to recovery from ratepayers. The costs at issue arose from losses upon the sale in 2000 of Atlantic Electric’s interest in nuclear generating units. An expert retained by the Public Advocate’s Division of Rate Counsel found that the proposal would increase costs to ratepayers by $91.5 million. 

”With the high cost of energy affecting so many South Jersey residents, especially seniors and lower income families, Atlantic City Electric’s proposal to recover an extra $91.5 million should receive the highest scrutiny,” said Chen. “South Jersey residents should not have to pay for costs that Atlantic City Electric’s shareholders should be paying.”

The proceeding involves the treatment of federal income tax benefits related to deferred taxes and the depreciation practices associated with the sale of Atlantic’s interest in the Hope Creek, Salem, and Peach Bottom nuclear generating units. The company sold its interests in the units under divesture laws that were enacted in 1999.

In a filing with the Board on June 22, 2007, Atlantic City Electric sought an increase in the amount of costs associated with the nuclear unit sale that are recoverable from ratepayers. The BPU will consider the matter at a future agenda meeting.

Chen added: “Atlantic City Electric’s proposal would cost the average residential ratepayer $7 a year for the next 10 years. I am sure that ratepayers would rather that they have that money in their pocket. As with all utility issues, these individual decisions can really add up to have a significant rate impact.”


The Division of Rate Counsel is a division within the Department of the Public Advocate and represents the interests of consumers of electric, natural gas, water/sewer and telecommunications and cable TV service. Additional information on this and other utility matters can be found at the Division’s website at The Department of the Public Advocate website is