Atlantic City Electric customers are feeling the pain, having faced a summer of skyrocketing electricity bills.

In recent months, customers of the energy provider have reported bill spikes — some by as much as three to four times what they normally pay during the summer months.

“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,” a spokesperson for Atlantic City Electric, an Exelon company, told NJBIZ. “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.”

The utility pointed to the summer heat, especially in June, which was the second hottest on record in New Jersey. Temperatures that month marked an 8% increase year over year. It also cited a supply rate increase of 13% and a 5% percent jump in the distribution rate.

The distribution rate allows AC Electric to continue its investment in reliability upgrades, address severe storm damage, and more.

Third-party suppliers

“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,” the spokesperson said. “If a customer has a price agreement with a third-party supplier other than Atlantic City, these agreements could cause changes based on electricity cost. We encourage customers to understand and discuss pricing options yearly with their chosen supplier.”

Atlantic City Electric notes that the New Jersey Board of Public Utilities regulates and approves all its rates, supply and distribution.

“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,” the statement continued. “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.”

Atlantic City Electric has found there is no correlation to higher energy bills and the installation of a new smart meter.
– AC Electric statement

The spokesperson also pointed to several resources and programs helping customers save energy and money this summer – as well as financial assistance tools, which you can find out more about here and here.

Looking for ‘immediate’ action

In the wake of the situation, South Jersey lawmakers are calling for action.

“I have heard from thousands of constituents across the district who have seen their energy bills skyrocket compared to last year with no explanation as to why,” said U.S. Rep. Jeff Van Drew, R-2nd District, who wrote a letter to the NJBPU. “We must get to the bottom of what is driving these unreasonable increases, whether it is linked to offshore wind turbines, smart meter installations, or something else entirely. There needs to be a thorough investigation with a public hearing, and until we have answers, any energy hikes should be immediately halted.”

There needs to be a thorough investigation with a public hearing, and until we have answers, any energy hikes should be immediately halted.
– U.S. Rep. Jeff Van Drew, R-2nd District

Van Drew said South Jerseyans should not shoulder this additional burden, especially given the inflationary conditions they already face. “I demand the NJBPU take immediate action to alleviate this strain and protect our residents from these unjust financial burdens,” he added.

“Instead of fighting to keep utility prices low as we deal with an affordability crisis, the BPU has instead chosen to abandon their mission of protecting ratepayers. Now, New Jerseyans are being forced to bear another financial burden as Atlantic City Electric takes more of their hard-earned income with shocking utility prices that are two, three, or even four times their normal bill,” said state Sen. Mike Testa, R-1st District.

Testa blasted the Murphy administration’s energy plan, pointing to the failed Ørsted deal. According to him, that leaves residents paying more for less. “That’s why I’m calling for public hearings so the people of South Jersey can finally get the transparency and answers they deserve,” Testa said.

Customers encouraged to compare usage

“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 lead to an increase, especially in the summer,” the NJBPU told NJBIZ in a statement. “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.”

The NJBPU noted those prices went into effect on June 1, following an electricity auction for Basic Generation, with further details 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,” the statement continued.

“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)-624-0241 or https://www.nj.gov/bpu/assistance/complaints/.”

NJBPU also pointed to initiatives to help customers having trouble paying their bills, which can be found here, including the Residential Energy Assistance Program announced earlier this week – a one-time bill credit of $175 for those most in need of assistance.

Editor’s note: This story was updated at 5:32 p.m. ET Aug. 27, 2024, to include a statement from the New Jersey Board of Public Utilities.