South Jersey consumers complaining of high electric bills from Atlantic City Electric

PHILADELPHIA (WPVI) -- Some utility customers in South Jersey are experiencing sticker shock with their recent electric bills so the Action News Troubleshooters got to work to figure out what's happening.

Those we spoke with said their electric bills have doubled and even tripled this summer.

Michelle Nowaczyk of Clayton, Gloucester County said she couldn't believe her eyes when she got her latest Atlantic City electric bill.

"I just stood there in shock and said this can't be right - this isn't ours," she said.

Her bill in June was just over $100. In July it jumped four times to over $450 - and she's not alone.

"Even on Facebook, my one girlfriend, her bill is normally $200, it was $890," said Michelle.

The same happened to Jennifer Blake from Monroeville, Gloucester County.

"It went from $480 to over $900 and some a month." she said.

The Troubleshooters went to Atlantic City Electric for answers.

"Atlantic City Electric is aware that customers have been seeing fluctuations in their recent energy bills," said Atlantic City Electric spokesperson Candice Womer.

The power company said the spike is due to a number of factors coming together. The first two are rate increases took effect on June 1st.

One is a 13% supply rate increase, which is the cost of the electricity itself. That money does not go to AC Electric. The other is a 5% distribution rate increase, which does goes toward improving the company's infrastructure.

Plus: "We found that New Jersey experienced the second hottest June on record since 1895 and July was trending around the same," Womer said.

The company said "New Jersey experienced a nearly 8% temperature increase from June 2023 to June 2024. And a more than 15% increase from May 2024 to June 2024."

AC Electric also said "it's found no correlation to higher energy bills and the installation of new smart meters" and is encouraging concerned customers to reach out for help.

"We want them to call us so we can walk through their bills and make sure that they all fully understanding these factors and you know what they're paying for," said Womer.

And consumers who are struggling are urged to sign up for a payment plan and/or budget billing, which estimates what you owe and then divides that amount into 12 even payments you pay over the course of the year so you can avoid seasonal peaks.

"When they create that budget billing plan, it tells them what their rate will be every month, and they can plan accordingly," she said.

Also ask about programs that provide assistance to those who qualify and shop around for your electricity supplier to see if you can get a lower rate.

Full Statement

Atlantic City Electric Addresses High Bill Concerns and is available to speak with customers about any billing issues or increases they may have

Atlantic City Electric understands that changes in rates, the cost of electricity and seasonal temperatures may have led to fluctuations in customer's recent electric bills. Our goal is to ensure customers are well-informed about the factors affecting their bill so they can better understand rates and consider all potential ways to save energy and money.

Summer heat continues impacting the region, with the state on track for potentially the warmest summer to date. New Jersey experienced the second hottest June on record, with a nearly eight percent temperature increase from June 2023 to June 2024. Additionally, heat increased more than 15 percent from May 2024 to June 2024, drastically impacting the way customers use energy and causing cooling system to work harder to keep up.

Customers recently saw a supply rate or commodity price increase of 13 percent. The supply rate is the cost of the electricity a customer uses, and that rate changes based on purchase cost of electric. Customers can utilize a third-party energy provider for the supply portion of their bill. If a customer has a price agreement with a third-party supplier other than Atlantic City Electric, these agreements could cause changes based on electricity cost. We encourage customers to understand and discuss pricing options yearly with their chosen supplier.

Customers also saw a five percent distribution rate increase that allows the company to continue investing in reliability upgrades, our Smart Energy Network and EVsmart programs to better serve customers. The rates also address severe storm damage and help us invest in making the grid more resilient against future storms.

Atlantic City Electric has found there is no correlation to higher energy bills and the installation of a new smart meter. In fact, the tools enabled by an upgraded smart meter can help customers better monitor their usage with features such as high bill alerts and have better insights with more detailed daily energy use information. Customers can take advantage of the enhanced functionality on the Atlantic City Electric app and MyAccount at atlanticcityelectric.com The higher-than-normal seasonal temperatures, rate adjustments and the cost of electricity could contribute to a customer's electric bill varying recently.

We are also committed to helping our customers save energy and money this summer season and offering programs such as Budget Billing, which can provide a more predictable and consistent monthly payment. We offer energy efficiency programs and energy saving information to help customers reduce their energy usage, especially during times of prolonged higher temperatures. More information regarding these programs can be found at atlanticcityelectric.com/WaysToSave. Customers can also visit atlanticcityelectric.com/EnergyAssistance to learn more about energy assistance options.

State/Federal Energy Assistance Information

Atlantic City Electric works closely with its community partners to connect customers with grants and programs like LIHEAP, the Low-Income Home Energy Assistance Program. LIHEAP provides grants in varying amounts based on a household's income size, type of fuel and type of dwelling, with no pay back required. South Jersey customers can apply for LIHEAP energy assistance through the Department of Community Affairs website, by contacting their local LIHEAP Agency or by calling 800-510-3102. Residents also can access the Department of Community Affairs self-screening tool to help determine what energy assistance benefits they may qualify for.

Atlantic City Electric works hard to keep every customer connected by offering payment arrangements and helping customers secure grants and other support from several available energy assistance programs.

In 2023, Atlantic City Electric helped more than 37,000 customers secure approximately $51.5 million in energy assistance, including more than $8.3 million from LIHEAP funding that helps pay customer energy bills and money that customers do not need to pay back.

Other programs assisting Atlantic City Electric customers include:

New Jersey SHARES is a nonprofit corporation that provides utility assistance to income eligible customers. The program offers everything from government grants to free conservation programs and more. Visit njshares.org or call 1-866-657-4273.

The Universal Service Fund helps ensure energy bills are more affordable for eligible customers. Eligibility requirements for USF recently changed providing customers who previously may not have been eligible to now participate. The Fresh Start arrearage forgiveness portion of the program also is now open to past participants. Call 1-800-510-3102 or visit energyassistance.nj.govor information.

The Payment Assistance for Gas and Electric program provides relief on natural gas and electric bills for limited-to moderate-income customers experiencing a temporary financial crisis. Customers can call 732-982-8710 or visit njpoweron.org.

Lifeline is a utility assistance program that offers $225 to persons who meet certain income guidelines. Utility customers as well as tenants whose utility bills are included in their rent can call 1-800-792-9745 for details.

Atlantic City Electric Payment Options

Atlantic City Electric Customer Care is also available to help by offering:

• Flexible payment arrangements that offer tailored payment plans
• Extending payment periods for balances
• Connecting customers with energy assistance funds
• Budget Billing, which averages payments over a 12-month period and helps avoid seasonal spikes and provides a consistent monthly bill.

Customers can contact Atlantic City Electric at 800-642-3780 to discuss payment arrangements or visit atlanticcityelectric.com/EnergyAssistance to learn more about energy assistance options.