By Sarah Fertsch
Staff Writer
Atlantic City Electric Customers are feeling the pinch as their summer energy bills have soared to unprecedented levels. Many report that their bills have increased significantly – some have even doubled – and they are demanding answers.
Electricity prices are going up in New Jersey thanks to a recent auction for Basic Generation Service (BGS) that the New Jersey Board of Public Utilities (NJBPU) approved back in February. This was the 23rd annual auction, and it partly sets the rates for the following year. The new rates kicked in on June 1.
So what’s the bottom line? The NJBPU gave the greenlight for the state’s four biggest utilities to raise their rates for residential customers, and small to medium-sized businesses.
That means Atlantic City Electric (ACE), Jersey Central Power & Light (JCP&L), Public Service Electric & Gas (PSE&G), and Rockland Electric (RECO) have all hiked their rates. Customers can expect to see their power bills go up anywhere from 3.6% to 8.6%, depending on which utility they’re with.
Atlantic City Electric has acknowledged receiving complaints from customers about fluctuating bills. “We have heard from our customers, and we are working with them,” said Candice Womer, a spokeswoman for the utility.
Womer cited two main reasons for the spike in electric bills. “First, it has been an unusually hot summer, and residential usage for June and July increased by 20% compared to last year. On top of that, a rate increase went into effect during the extreme heat.”
Atlantic City Electric has also noted that customers have been experiencing a 20% overall rate increase this past year due to various factors, including supply, distribution and seasonal rate hikes. These changes mirror similar trends across other power companies in New Jersey.
“We understand our customers’ concerns and the economic challenges they face. Atlantic City Electric is committed to helping customers understand their bills and providing resources to help reduce energy usage and save money. We continue to work with local officials to meet the energy needs of our customers and address the factors contributing to rising energy costs,” the company stated in a press release.
However, some residents remain dissatisfied with the utility company’s response. An online petition calling for greater transparency regarding the rate increases has already garnered more than 30,000 signatures.
U.S. Rep. Jeff Van Drew has also voiced concerns, writing a letter to the New Jersey Board of Public Utilities (NJBPU) demanding a public hearing for South Jersey residents to express their frustration over the sudden spikes in electricity bills.
“Over the past few months, my office has collected substantial data from thousands of residents showing that their energy bills have sometimes tripled compared to the same period last year,” Van Drew wrote. “These increases are unacceptable, particularly during a time of severe economic hardship.”
A spokesperson for the NJBPU stated that the board is investigating the complaints they’ve received from ratepayers.
“The cost of generating electricity has changed, which is not unique to New Jersey,” the spokesperson explained. “Utilities purchase electricity on the market, and different factors affect those costs.
“After an exceptionally hot summer, we encourage customers to compare their usage month-to-month and year-to-year to determine if higher usage is driving the increase in their bills.”
As the debate over high utility costs continues, many in Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Ocean and Salem counties hope for more clarity and relief from these financial pressures. Earlier this month, Van Drew called for a pause on all shut-off notices, in support of users unable to pay their expensive bills.
“People are having a tough time because of these sudden and massive increases in their bills,” he said. “It is only fair that AC Electric stops these shut-offs until their new billing system and smart meters are audited and thoroughly investigated. Customers deserve transparency and fairness immediately.”
Van Drew, a Republican, serves New Jersey’s 2nd Congressional District covering all of Atlantic, Cape May, and Cumberland counties; and parts of Gloucester, Ocean and Salem counties. He will face Democratic candidate Joseph Salerno in the November election.
Van Drew asks BPU to end shut-offs, hold public hearings
EDITOR’S NOTE: The following is from a copy of a Sept. 3, 2024, letter from Rep. Jeff Van Drew, to the NJBPU:
I am following up on my previous letter regarding concerns about Atlantic City Electric’s billing practices. As the representative of the constituents of South Jersey, I am eager to hear about the New Jersey Board of Public Utilities’ (NJBPU) next steps towards launching an investigation and scheduling public hearings on this matter. I hope to receive an update on your progress soon.
In the meantime, I urge the NJBPU to take immediate and decisive action to protect consumers who have been affected by the unprecedented increases in their electric bills. Specifically, I am requesting the following:
- Cease Shut-Off Notices: Immediately halt all shut-off notices to customers who have been in good standing with their payments but have fallen behind in recent months due to recent increases in their electric bills. It is unconscionable that families are being threatened with losing their electricity while these billing issues remain unresolved.
- Public Outreach Events: Mandate that electric companies, including Atlantic City Electric, conduct public outreach events both in person and virtually. These events should provide a platform for customers to meet directly with company representatives to review their bills, request rebates where warranted, and receive clear explanations for any charges that exceed approved increases or usage changes.
Families in my communities are being forced to make impossible choices between paying their electric bills and affording basic necessities like food and medicine. This situation calls for immediate attention and resolution, and I believe it is the Board’s responsibility to ensure that all utility companies operate transparently and fairly.
I look forward to your prompt response. My constituents deserve nothing less than fair treatment and accountability from their utility providers.
Jeff Van Drew
Member of Congress
