Action News Troubleshooters get answers from AC Electric about skyrocketing bills
PHILADELPHIA (WPVI) -- Atlantic City Electric is making changes in response to thousands of complaints about skyrocketing bills.
Action News sat down with leadership at AC Electric on Thursday morning.
The reasoning behind the bills has really befuddled both Action News meteorologists and Action News' resident mathematician: our 6abc data journalist.
Our weather people say AC Electric's claim about warmer temperatures is overblown. There was only a two to three degree increase in summer temperatures from 2023 to 2024.
READ MORE: South Jersey congressman calls for investigation into skyrocketing Atlantic City Electric bills
Our data journalist says the company's bills are confusing, especially for solar customers, because they're missing key information -- namely how surplus energy is applied.
"I just stood there in shock. I said, 'This can't be right like this isn't ours,'" said Michelle Nowaczyk of Clayton, Gloucester County.
"How many complaints have you received since this summer?" asked Action News Troubleshooter Nydia Han.
"Over the last two months, we've had about 650 or so high bill related complaints," said Amber Perry, VP of Regulatory Strategy and Policy at Atlantic City Electric.
AC Electric has told Action News and its customers two major factors have led to the higher bills, claiming an average 20% rise in usage due to more electric vehicles and more people working remotely and especially due to warmer weather. Plus, three recent rate increases: supply, distribution, and seasonal, add up to another 20% increase.
"However, consumers' bills are skyrocketing beyond that. We've talked to people whose bills have gone up 300%, 400%, 3,000% , 6,000%. How do you explain that?" asked Han.
"Each bill is different, and we really need to work closely with each customer to see their usage patterns, their energy demands," said Perry. "We have been extremely diligent about following up with each of those customers to understand what are the root causes."
Perry says the majority of complaints have been from solar customers like Ed O'Neill of Albion, Camden County.
"The bills have gone crazy and it's all since the smart meters came in," said O'Neill.
O'Neill's bill went from $6 in June to $385 in July, 61 times higher both month to month and year to year.
AC Electric says it tested O'Neill's meters and they are 100% accurate.
It says the spike in his bill is due to him using more energy than his solar panels generated, while in the past he'd been using less electricity and was getting a credit for it.
"If the solar panel is not generating enough to offset the increase in usage, that's where he's going to see a particular spike up in his bill," said Perry.
But AC Electric also promises it will continue to investigate. It also says its smart meters are not to blame for the high bills.
"If customers have concerns about their meters and accuracy, we will test those meters and make sure they are within our accuracy threshold. And if not, we will replace those meters. To date, we have not seen that as a common issue or common root cause for any of the spikes that we're seeing," said Perry.
"Do we have your word that if a customer complains to us, you will look at their smart meters, look at their bills?" Han asked.
"Absolutely. It is our role to support our customers to make sure the testing is done," said Perry.
"Given the high volume of complaints, are you doing anything differently? Adding more customer service representatives?" Han asked.
"We've actually added some additional resources, given the spike because again. We want to make sure we are addressing these in the most timely and expeditious way," Perry said.
The company says it is adding 20 more people to its current customer service team of 150. And on August 30, it launched a new Bill Support web page for consumers.
The company insists the bills, and its new smart meters are accurate.
On another note, we asked AC Electric if it anticipates requesting more rate increases, and its answer was "yes." AC Electric says rate increases are vital to ensuring resiliency and reliability for their customers while preparing the grid for evolving energy usage and upgrades to their infrastructure.
But one small positive to look out for while consumers saw about a 2% average seasonal rate increase this summer -- they will see about an average 2% decrease in October.
Energy Assistance and Energy Efficiency Programs
Atlantic City Electric provides tips and information to empower customers to better manage their energy use and has programs to support those who may be struggling to meet their energy needs or are facing financial hardship.
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 Agencyor 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 $8.3million 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 SHARESis a nonprofit corporation that provides utility assistance to income eligible customers. Theprogram offers everything from government grants to free conservation programs and more.Visit njshares.orgor call 1-866-657-4273.
- The Universal Service Fund (USF) 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 1-800-510-3102or visit energyassistance.nj.govfor information.
- The Payment Assistance for Gas and Electric (PAGE) 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 visitnjpoweron.org.
- Lifelineis 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 call1-800-792-9745 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 visitatlanticcityelectric.com/EnergyAssistanceto learn more about energy assistance options.
Atlantic City Electric Statement
"Summer heat continues impacting the region, with the state on track for potentially the warmest summer to date. Atlantic City Electric understands the extreme summer heat, combined with changes in rates and cost of energy, have led to fluctuations in customers' recent energy bills.
New Jersey experienced the second hottest June on record, with a nearly eight percent temperature increase from June 2023 to June 2024. July was the seventh hottest month on record. It was also determined that residential usage in Atlantic City Electric's service area for June and July increased 20 percent compared to last year.
Recent studies have revealed that New Jersey residents are using energy more than ever before, causing equipment to work harder. This increased energy demand, coupled with inflation and extreme weather, are contributing factors affecting energy bills.
Customers have also experienced a 20 percent overall rate increase during the last year due to several different factors including supply, distribution and seasonal rate increases.
The supply rate is the cost of the electricity a customer uses, and that rate changes based on purchase cost of electric. It is a pass-through cost thatthe company does not profit from. Customers can use a third-party energy provider for the supply portion of their bill. The distribution rate allows the company to continue investing in reliability upgrades to better serve customers. Distribution rates also address severe storm damage and help us invest in making the grid more resilient against future storms.
We recognize our customers' concerns and the economic challenges so many are facing right now. Atlantic City Electric wants to make certain customers not only understand their bills, but also the resources available to lower energy usage and save money. We will continue to work with local officials to ensure we are meeting the energy needs of our customers and to understand the factors contributing to rising energy costs.
Each customer's bill is unique and can vary from energy use, to supplier, to clean energy solutions like solar. 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. Which is why we now have a portion of our website dedicated to educating our customers and addressing their concerns. We ask our customers to visit atlanticcityelectric.com/BillSupport where they will find additional information on understanding their energy bill, rates and more. There is a section for customers to directly reach out to our Customer Care team by submitting questions through our online portal - saving our customers' valuable time.
Atlantic City Electric understands and hears our customer concerns - and we are here to empower customers to better manage their energy use with programs to support those who may be struggling to meet their energy needs or are facing a financial hardship."
