South Jersey congressman calls for investigation into skyrocketing Atlantic City Electric bills
"It went from like $480 to over $900 and some a month," said one customer.
ALBION, New Jersey (WPVI) -- The Action News Troubleshooters have been working on getting answers for South Jersey consumers experiencing skyrocketing Atlantic City Electric bills.
A petition on Change.org posted Monday, August 26, is also demanding accountability from the company. It already has over 30,000 signatures.
The electric bill sticker shock has also got the attention of Representative Jeff Van Drew.
"The bills have gone crazy, and it's all since the smart meters come in," said Ed O'Neill of Albion, Camden County.
His home has solar panels so his bill is normally very low.
"Instead of a $6 or $7 bill, I got a bill for $385!" said O'Neill.
That was in July. The bill was 61 times higher than his previous one.
He is one of thousands complaining that their bills are spiking at a bizarre rate.
Last week, we introduced you to Michelle Nowaczyk, of Clayton, Gloucester County, whose bill jumped four times higher in July.
"I just stood there in shock. I said, 'This can't be right, like this isn't ours,'" she said.
And Jennifer Blake, of Monroeville, Gloucester County, is also having issues.
"It went from like $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 Candice Womer of Atlantic City Electric.
Atlantic City Electric says the new meters are not to blame and continues to insist the rising bills are simply due to hot weather and rate increases impacting both supply and distribution. Atlantic City Electric also says it's determined that residential usage for June and July increased 20 percent compared to last year.
But consumers say those factors alone cannot account for the extreme spike in their bills.
"There's something wrong," said O'Neill.
The Troubleshooters have also done the math and it doesn't make sense.
"You know our phones are ringing, our emails are just coming in like crazy because it's everybody. I meant there's something very, very wrong," said Representative Van Drew of New Jersey's 2nd District.
He says his office is hearing from thousands of consumers.
Van Drew agrees the spike in bills cannot be attributed solely to rising heat and rate increases.
"Exactly at the same time that their smart meter was put in is the time when their new rates were much, much more," he said.
Van Drew is now calling for the Board of Public Utilities to take action.
"Do a thorough investigation, a real one. Just don't do what the electric company wants you to do. Secondly, suspend, any future rate increases because people can't afford it," Van Drew added.
In a statement to the Troubleshooters on Wednesday, the state Board of Public Utilities only echoed what Atlantic City Electric is telling us. We then asked for comment on the calls for a more thorough investigation. It tells us it does investigate high bill complaints and works with customers who contact the Board.
Meantime, Atlantic City Electric tells us it is still working to address O'Neil's concerns and those of all the other consumers who've reached out to us.
Atlantic City Electric Statement
"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. 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.
Recent studies have revealed that New Jersey residents are utilizing energy more than ever before, causing equipment to work harder. This increased energy demand, coupled with inflation and extreme weather, are contributing factors effecting energy bills.
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. July was the seventh hottest on record.
Customers also recently saw a supply rate increase of 13 percent and a five percent distribution rate increase. All rate increases are regulated by the New Jersey Board of Public Utilities (NJBPU).
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 that the company does not profit from. Customers can utilize 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.
Atlantic City Electric understands and hears our customers 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."
Additional statement from Atlantic City Electric
"For awareness, the increases are not a flat percentage over the whole bill. For the example, the supply rate increase covers just the supply charge, which is a portion of the bill and the same for distribution. The increase amount is also based on how much energy a customer is using.
Atlantic City Electric is also seeing increases in the average usage per customer of 20 percent for June and July, when compared to those same months during the previous year.
Solar customers' bills are formatted differently, so that is why we urge customers to call to ensure they are understanding the bill correctly.
We are aware of Congressman Van Drew's letter and the petition that is circulating on social media platforms. We understand our customers concerns, which are addressed in both the letter and the petition, and we want to make our customers aware that Atlantic City Elected is a highly regulated utility that reports activity the New Jersey Board of Public Utilities (NJBPU) and is regularly audited. On the same note, all rate increases are also regulated and approved by the NJBPU. The company, however, remains committed to working with local officials to support customers facing financial hardships - and urges customers to reach out directly for help.
On the topic of smart meters, to reiterate, Atlantic City Electric has found there is no correlation to higher energy bills and the installation of a new smart meter. 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.
Lastly, the fluctuations in customers' recent electric bills are not connected to the work stoppage that occurred with IBEW Local 210 last November."
New Jersey Board of Public Utilities Full Statement
"The New Jersey Board of Public Utilities has received outreach from ratepayers regarding increases in their recent summer electric bills. There are several factors that can lend to an increase, especially in the summer.
One recent reason ratepayers may have experienced an increase is that the cost of generating electricity has changed, something that is not unique to New Jersey. Utilities purchase their electricity in the marketplace and there are different market mechanisms that impact the cost of electricity. Details on the prices that went into effect on June 1, 2024, as a result of the electricity auction for Basic Generation are available here.
One of the main drivers in the cost of an electric bill, though, is usage. After a particularly hot and humid summer, we encourage customers to compare their individual usage from month-to-month and year-to-year to determine if higher usage has caused an increase in their bill. In addition to generally higher electric usage in the summer months, the utilities provide information on "heating/cooling degree days" to help customers see the impact weather has on their usage.
If a customer notices an anomaly and cannot determine an explanation, we encourage them to connect with their utility directly or contact the NJBPU's Customer Assistance Division at (800)-624-0241or https://www.nj.gov/bpu/assistance/complaints/. When requested, BPU staff will witness a meter test to ensure that the meter is functioning properly. If it is determined that there is an error with the meter or a billing error in general, customers are entitled to a refund on the amount they were overbilled.
The NJBPU reminds customers who are experiencing trouble paying their bills to contact their utility to set up a deferred payment plan or visit our website to learn about energy assistance programs at https://www.nj.gov/bpu/assistance/programs/. The Board recently announced the Residential Energy Assistance Payment, a one-time bill credit for qualifying ratepayers, funded by unspent New Jersey Clean Energy Program funds to provide relief in the form of a $175 credit for those most in need of assistance.
We investigate high bill complaints that we receive from ratepayers and work with customers who contact us to determine the drivers for the bill in question."
