Mays Landing, N.J. – Atlantic City Electric and Exelon executives joined New Jersey Gov. Chris Christie today to announce an additional $56 million in benefits from the Pepco Holdings Inc. merger with Exelon in March 2016. The additional benefits, recently approved by the New Jersey Board of Public Utilities (NJ BPU), bring the total benefits to customers and the state to $126 million.
The expanded benefits include more funds to support energy efficiency programs to help New Jersey customers save money, workforce development initiatives to fund or expand job training, and additional assistance to help residents in need pay their utility bills.
“With this merger, we have combined the best customer and operational practices in the utility industry,” said Chris Crane, Exelon president and CEO. “We are able to offer customers and the communities we serve more reliable energy delivery, innovative programs and bill savings. We are also pleased to partner with workforce development and community agencies in the economic development of southern New Jersey.”
“A modern, efficient energy grid that is affordable for all of our businesses and residents is an essential ingredient to a strong and growing economy in New Jersey,” said Gov. Christie. “Through their merger, Exelon and Atlantic City Electric are delivering on their commitment to invest in our people and communities so that we can continue making progress.”
“These new benefits will have a positive impact on individual families, as well as communities and the local economy,” said Dave Velazquez, Pepco Holdings president and CEO. “As part of the Exelon family, Atlantic City Electric is stronger and better equipped to power the communities it serves with reliable, affordable and sustainable energy.”
As part of the merger approval, the order of the NJ BPU provided that Exelon would increase the value of the state’s merger benefits to make them commensurate with other jurisdictions that approved the merger after New Jersey.
These additional benefits include:
- $7.5 million in spending on energy-efficiency programs for ACE customers, in addition to the $7.5 million in the original merger package, that in total have the potential of creating up to $30 million in savings over the life of the energy-efficiency measures.
- More than $6 million in Workforce Development Initiatives to be paid in installments over six years to develop, fund or expand job training and workforce development efforts to help improve employment opportunities in ACE’s Southern New Jersey service area.
- $4 million Helping Hands program for low-income customer support to be provided over four years to the Affordable Housing Alliance, NJ SHARES, Catholic Charities and People for People Foundation.
- More than $22 million in additional customer rate offsets beginning June 1, 2017.
- A one-time reduction of more than $16 million in the Non-Utility Generator Charge (NGC) and Uncollectible deferred balances, which means customers did not receive a $2.06 per month increase in the NGC and Uncollectible rates that were effective June 16, 2016, through May 31, 2017.
In addition to the new benefits approved October 31, 2016, ACE customers are already experiencing benefits from the merger, including new and higher standards for reliability, $62 million in customer bill credits for all Atlantic City Electric customers and more than $530,000 in charitable giving to local nonprofits.