The Common Council of Salem, NJ, has voted to study the feasibility of creating a municipal electric system that would compete directly with Atlantic City Electric Co. (ACE), the city's present electricity supplier. The proposal under discussion would establish a new utility in Salem; the city would not condemn ACE facilities nor prohibit ACE from operating within city limits.
Over the next few months, Salem will review power-supply options, solicit statements of interest to supply electricity to the city, and examine transmission and distribution requirements. An eight-member panel will prepare a report no later than July 1, 1996. ACE will sit on the panel as a nonvoting member, and has vowed to oppose any formation of a municipal electric system. The other panel members include the mayor as well as present and former school board members. Also holding nonvoting status is
Anchor Glass Co., a large industrial customer strongly in favor of municipalization. Anchor Glass has estimated that Salem's customers could save at least 30 percent over present electric costs through municipalization. t
Lori A. Burkhart is an associate legal editor of PUBLIC UTILITIES FORTNIGHTLY.