South Jersey Leaders Seek ACE Refunds After Federal Audit Finds Overbilling

South Jersey lawmakers are calling for refunds after a federal audit found Atlantic City Electric overbilled transmission customers and acted contrary to federal tax law.

Congressman Jeff Van Drew said the findings by the Federal Energy Regulatory Commission confirmed concerns he and others had raised for years about what customers in South Jersey were paying for electricity. In a statement released from Washington, D.C., Van Drew said he had asked FERC to audit the company after public hearings and questions about the utility’s explanations.

"For years, we have been saying something was wrong with what people in South Jersey were paying for electricity," said Van Drew. "We were told that we were crazy and that there was nothing to see here. We held public hearings on the issue, we pushed ACE for answers, we challenged the explanations we were being given, and when the numbers still did not add up, I asked FERC to step in and audit the company."

Van Drew said the audit results should lead to refunds and lower electric costs. He also renewed his criticism of the New Jersey Board of Public Utilities, saying it had approved repeated rate increases.

"Now the result of this audit shows exactly why we were right to demand answers. This has to be made right. The people who paid more than they should have deserve refunds now. And this audit must lead to real rate decreases, so families are not continuing to pay some of the highest electric costs in the country, especially after the New Jersey Board of Public Utilities spent years approving increase after increase instead of looking into this. Once again, I am calling for their resignation," Van Drew said.

Following the audit’s release, Sen. Carmen Amato Jr., Assemblyman Brian Rumpf and Assemblyman Gregory Myhre also called on Atlantic City Electric to refund any overbilling charges to customers. Their statement said the issue remains a priority because of rising electric bills and what they described as ratepayers’ rights.

“In view of the findings in the Commission’s thorough audit, any overbilling by Atlantic City Electric should be refunded to impacted ratepayers as soon as possible,” Amato, Rumpf and Myhre said in a joint statement.

The three lawmakers said Atlantic City Electric serves many constituents who are struggling to pay their bills.

“Ratepayers need and deserve any and all assistance in paying their bills, which obviously includes not being held responsible for paying any erroneous charges,” the statement said.

The 9th Legislative District delegation said it will keep watching the issue.

“This is an issue that our Delegation will continue to monitor given the impact that rising electric bills are contributing to New Jersey’s overall cost of living crisis,” the delegation said.