Jersey Shore Views...: Getting Bit By Going Green at the Jersey Shore!

Going green could be a double edged sword for Jersey Shore utility customers. Atlantic Electric, the company that serves most of South Jersey and customers in southern Ocean County, wants to raise its rates 3.5%.

The reason it quite surprising!  Utility generation costs are too low!  

Now, you say, wait shouldn't our rates being going down?  Well that would be the case anywhere else but here in New Jersey.  

Back in the 1980's, in an effort to encourage independent energy production (that includes the excess generated by residential wind and solar power generation and sold back to the utility), New Jersey government set policies to allow a utility company to recover above market costs on power from independent generators.  This electricity is not sold to AC Electric customers, but it's delivered to the regional market.  

That worked well, while utility prices continued to increase.  Now prices on the regional grid system are down, and customers must make up that difference...the difference between what AC Electic pays for the power and what it ultimately sells it for on the regional market.  

The proposal has been submitted to the New Jersey Board of Public Utilities for approval.  The increase would be effective July 1, 2009.