Half a million N.J. homes would get $114 credit under utility deal, reports say

By Craig McCarthy | NJ Advance Media for NJ.com

Atlantic City Electric's half a million customers would see some free credit if a proposed nearly $7 billion-dollar merger is approved by officials, reports say.

The deal would also leave PSEG as the only New Jersey-based utility operating in the state.

Under a tentative settlement,approved by New Jersey between the parent company of A.C. Electric and Exelon Corp., South Jersey customers would get $114 in credits from the utility company, according to reports.

The $6.8 billion acquisition still needs approval from the commissioners of the state Board of Utilities, according to NJ Spotlight.

The deal, which also still needs the approval of agencies in Delaware, Maryland and D.C., would create a $62 million customer investment fund in New Jersey, the Asbury Park Press reports.

The New Jersey Division of Rate Counsel, which represents consumer and business interests, disagreed and refused to approve the plan.

If approved, Exelon, the owner of Oyster Creek nuclear power plant in Lacey, would become a utility company serving about 10 million customers, the reports say.  

A.C. Electric would keep headquarters in Mays Landing. The utility company serves 547,000 in South Jersey. 

In addition to the credits, the settlement would create a $15 million energy-efficiency savings program for Atlantic City Electric customers over five years and improved reliability of service, according to reports. It also calls for a commitment to hire 60 union employees and donate annually to charities.