‘Totally shocked': Customers and lawmakers call for action after Atlantic City Electric bills spike

People in South Jersey say they are feeling the crunch after their summer electric bills skyrocketed. Many say they were shocked to see their Atlantic City Electric bills increase, in some cases doubling, and they want answers.

Shannon Franke, an AC Electric customer, said she was shocked when she got her most recent bill in the mail. She went from owing $434 in June, to $780 in July. By August she owed $1,032.

“I double checked to see if it was for my home. I was like, is this my address?!” said Franke. "You go into the summer knowing that you’re going to have a high electric bill, but I had a bill for over a thousand dollars.”

She is not alone. Atlantic City Electric acknowledged they have heard from customers with fluctuating bills.

"They have reached out to us and we are working with them," said Candice Womer, a spokesperson for the utility company.

According to Womer, two factors are driving the bill increases. First, she said, it has been a hotter than usual summer. Residential usage for June and July increased 20% compared to last year.

Plus, at the same time as the extreme heat, rate increases went into effect.

"Customers have also experienced a 20% overall rate increase during the last year due to several different factors including supply, distribution and seasonal rate increases," according to a press release from AC Electric.

The supply rate increased, as it did for other power companies across New Jersey.

"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," the company wrote in a news release.

Some people are not satisfied with the utility company's response. More than 30,000 people have signed an online petition calling for transparency on the rising rates.

U.S. Congressman Jeff Van Drew wrote a letter to the New Jersey Board of Public Utilities (NJBPU) demanding, "a public hearing to allow South Jersey residents to voice their concerns over the outrageous spikes in their electricity bills."

"Over the past few months, my office has compiled substantial data from thousands of residents, which indicate that their energy bills have sometimes tripled compared to the same period last summer," Van Drew wrote in the letter. "Such increases, especially at a time of severe economic hardship on nearly all expenses are unacceptable and have placed an undue financial burden on many families in our community."

A spokesperson for the NJBPU said the board does investigate high bill complaints that they receive from ratepayers. The board has received outreach from ratepayers regarding increases in summer electric bills, according to the spokesperson.

"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," a spokesperson wrote in a statement emailed to NBC10. "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."

How to get help

A spokesperson for the NJBPU said customers who are experiencing trouble paying their bills should contact their utility to set up a deferred payment plan. People can learn more about energy assistance programs here.