Net Metering With Atlantic City Electric

Atlantic City Electric (ACE) customers in New Jersey are facing significant electricity rate increases in 2025. A 17.23% hike, effective June 1, 2025, will raise average monthly bills by approximately $28.02, bringing the typical residential bill to $190.62. This increase is attributed to higher electricity supply costs resulting from a recent auction conducted by the New Jersey Board of Public Utilities (NJBPU) .Jeff Van Drew for Congress LocalLens+3Asbury Park Press+3solarbyomar.com+3 New Jersey Monitor+1Asbury Park Press+1

Additionally, ACE has proposed an 8% rate increase, which, if approved, would add about $12.96 to the monthly bill of a typical household using 643 kilowatt-hours per month. This proposed increase aims to fund $109 million in infrastructure upgrades, including modernizing substations, installing battery storage systems, and enhancing power lines to improve grid reliability and reduce outages .Downbeach+2SNJ Today+295.1 WAYV+2

The combined effect of these rate hikes has sparked widespread concern among local officials and residents. The Atlantic County Mayors' Association has formally opposed the proposed 8% increase, citing the financial strain on families and small businesses. Similarly, Lower Township Council has expressed strong opposition, emphasizing the burden these increases place on household budgets .Downbeach LocalLens

In response to these developments, some residents are exploring alternative energy solutions, such as solar power, to mitigate the impact of rising electricity costs. New Jersey's solar programs, including the Successor Solar Incentive (SuSI), offer opportunities for homeowners to reduce their dependence on the grid and lock in more predictable energy costs .solarbyomar.com

The NJBPU is expected to vote on the proposed 8% rate increase in April 2025. Residents are encouraged to stay informed and participate in public hearings to voice their concerns about these significant rate changes.LocalLens+6Jeff Van Drew for Congress+6Downbeach+6

What are the rate and pricing structures for net metering provided by Atlantic City Electric?

AC Electric calculates its net metering rates based on the annual net metering credits, which are then multiplied by the current retail rate. These credits are applied to forthcoming bills and any excess credits are carried over to the customer's account at the end of the year.

The net metering program from Jersey Central Power & Light encompasses three primary tiers based on system size, which determine the corresponding rates and prices. For Level 1, designed for solar panel systems up to 10kW (typically serving residential customers), Level 2 is intended for installations up to 2,000kW, while Level 3 pertains to facilities falling outside the criteria for Level 1 or Level 2 interconnection procedures.

What is the net metering capacity limit imposed?

In New Jersey, the net metering cap is set at 2.9% of the total annual kilowatt-hours (kWh) sold within the state by individual electric power suppliers in the preceding year. While there is no strict and inflexible constraint on net metering, the Board of Public Utilities (BPU) holds the authority to discontinue net metering availability upon reaching this capacity threshold. However, it is noteworthy that the BPU also retains the option to extend net metering even after this threshold is achieved. This mechanism is referred to as a "trigger" rather than a rigid cap.

What happens with the net metering bill credits?

In certain scenarios, AC Electric patrons might generate surplus electricity beyond their consumption, leading to a situation called net excess generation (NEG). This generates additional net metering credits, which are allocated both on a monthly basis and at the close of the year.

For every kilowatt-hour (kWh) of NEG produced, customers are reimbursed at the full retail rate, up to the total electricity amount they consumed within that yearly period. These credits are utilized to offset forthcoming bills until exhausted and have a validity until the year's end. If there are any remaining credits by the end of the year, the value of the excess generation is credited to the customer's account at the wholesale cost of power.