7 Critical Updates: What Atlantic City Electric’s $250 Million Grid Overhaul Means For Your 2025 Energy Bill
Atlantic City Electric (ACE), the regulated public electric utility serving Southern New Jersey, is undergoing a massive transformation, with significant financial and infrastructural changes scheduled throughout 2025. This deep dive, updated in December 2025, provides the most recent and critical information you need to understand how the company's multi-million dollar investments and regulatory filings will impact your service reliability and, more importantly, your monthly energy bill.
The company, a subsidiary of the Fortune 250 energy giant Exelon, is actively implementing its Smart Energy Network initiative while simultaneously navigating complex rate cases with the New Jersey Board of Public Utilities (BPU). From major transmission line upgrades to a substantial increase in the residential Price to Compare, the utility landscape for customers in Atlantic, Cape May, Cumberland, Gloucester, and Salem counties is shifting rapidly.
Atlantic City Electric Company Profile & Key Entities
Atlantic City Electric, often referred to as ACE, is the core utility provider for a significant portion of Southern New Jersey. Understanding its structure and key regulatory entities is essential for comprehending its operations and financial impacts.
- Official Name: Atlantic City Electric Company (ACE)
- Parent Company: Exelon Corporation (a Fortune 250 company and one of the largest utility companies in the U.S.)
- Headquarters/Primary Operating Base: Mays Landing, New Jersey
- Service Area: Approximately 567,000 customers across eight counties in Southern New Jersey, including Atlantic County, Cape May County, and Cumberland County.
- Primary Business: Transmission, distribution, and default supply of electricity.
- Regulatory Body: New Jersey Board of Public Utilities (BPU)
- Key Infrastructure: Operates thousands of miles of transmission and distribution lines, substations (e.g., Newport Substation, Cape May Substation), and advanced grid technology.
- Historical Context: Began in 1886 as The Electric Light Company of Atlantic City.
The Financial Shockwave: Major Rate and Pricing Changes for 2025
The most immediate and critical updates for Atlantic City Electric customers revolve around pricing and tariffs, with multiple filings and changes taking effect in mid-2025. These changes will directly affect the cost of electricity supply and delivery for residential and commercial users.
The Residential Price to Compare (PTC) Hike (Effective June 1, 2025)
A significant change in the cost of electricity supply for customers who receive their energy through ACE (known as the default supply) is imminent. Effective June 1, 2025, the residential Price to Compare (PTC) is set to increase substantially.
- New PTC Rate: The new residential PTC is set at 18.920 cents per kilowatt-hour (kWh).
- Effective Date: June 1, 2025, running through September 30, 2025.
- Impact: This rate is a key metric for consumers comparing ACE’s default supply with offers from third-party energy suppliers. The substantial increase means that customers who do not shop for an alternative supplier will see a significant rise in the supply portion of their bill.
The Proposed 8% Rate Hike and Tariff Changes
ACE has filed a petition with the New Jersey BPU requesting approval for an 8% rate hike for its distribution services. This proposed increase is separate from the supply-side PTC and covers the cost of maintaining and upgrading the physical infrastructure—the wires, poles, and substations—that deliver electricity to homes and businesses.
Furthermore, the company has provisional rates and a separate tariff change that is scheduled to take effect on July 2, 2025, which will affect how electrical capacity is contracted and billed for certain customers.
The $250 Million Grid Modernization and Reliability Push
To justify the need for increased rates and to enhance service, Atlantic City Electric is engaged in a massive, multi-year infrastructure overhaul aimed at improving service reliability, particularly during severe weather events. This effort is a core component of its commitment to customers across South Jersey.
1. The $250 Million Power Facilities Renovation Project
Atlantic City is the center of a large-scale power infrastructure renovation project with a total investment of US$250 million. This project is designed to promote an "intelligent" and more resilient grid that can better withstand environmental challenges and support the region's growing energy demands.
2. Critical Transmission Line Upgrades
ACE has recently completed construction on three critical transmission line upgrade projects that will enhance energy service for tens of thousands of customers. These upgrades, which include the use of advanced technology such as fiber optics and modern battery modules, are crucial for minimizing service interruptions. The company has three more major projects planned to follow these initial successes.
3. Substation Expansion and Modernization
Key facilities are being expanded and secured. The Newport Substation Expansion, for instance, involved increasing the substation yard's footprint and adding access roads to enhance operational efficiency. Additionally, the Cape May Substation project, recognized as a leading capital construction project in New Jersey, highlights the company’s focus on robust, storm-ready infrastructure in vulnerable coastal areas.
The Future of Power: Smart Grid and Customer-Focused Initiatives (2024-2025)
Atlantic City Electric’s operational strategy is heavily focused on implementing smart technology and expanding customer programs, which are key entities in the utility sector’s move toward digitalization and sustainability.
4. The Smart Energy Network Initiative
The Smart Energy Network is ACE's flagship modernization initiative. This project involves reinforcing the local energy grid through the installation of more than half a million smart meters across its service territory. These advanced meters are a foundational element for a more resilient and responsive grid, enabling real-time data flow and better outage detection.
5. Expanded Energy Efficiency Programs (Starting January 2025)
In a direct benefit to customers, ACE is significantly expanding its energy efficiency programs starting in January 2025. These programs are largely enabled by the new smart meters and include the introduction of Time of Use (TOU) rates. TOU rates allow customers to save money by shifting their energy consumption to off-peak hours, promoting better load management across the entire grid.
6. Operational Excellence and Storm Response Data (2024 Performance)
Recent operational data suggests that the infrastructure investments are yielding positive results. In 2024, the company reported a 41 percent reduction in the number of power outages experienced by customers. Furthermore, when outages did occur, crews averaged a safe restoration of service within a notably quick 50 minutes systemwide. ACE also conducts formal "lessons learned" reviews after major storm events to continuously improve its response protocols.
7. Corporate Responsibility and DEI Recognition
Beyond infrastructure, ACE has received recognition for its corporate practices. The company was named a 2025 Trailblazer Impact Honoree by the New Jersey Chamber of Commerce for its commitment to embedding Diversity, Equity, and Inclusion (DEI) principles into its daily operations. This highlights a broader focus on social responsibility and community engagement alongside its technical utility work.
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