Shocking NJ summer energy bills spark demands to freeze rate hikes

💡 Atlantic City Electric customers report huge bill increases

💡 Critics say ratepayers have seen bills triple over last summer

💡 ACE blames 3 main reasons

Atlantic City Electric customers are paying outrageously high electric bills this summer and lawmakers are demanding to know if the increases are above board.

Thousands of ratepayers in South Jersey have seen their bills skyrocket, according to U.S. Rep. Jeff Van Drew, R-N.J. 2nd District. He said some customers' bills have tripled this summer compared to last.

Van Drew is demanding a freeze on rate increases until an independent investigation is done. He's also calling for the state Board of Public Utilities to hold a public hearing on ACE's rate hikes.

"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," said Van Drew in a letter to the BPU.

State Sen. Michael Testa, R-Cumberland, piled on the utility and demand hearings in the legislature. He said the BPU had "chosen to abandon their mission of protecting ratepayers."

BPU spokesperson Tracy Munford said the cost of generating electricity has "changed" and this is not unique to New Jersey. People were also likely using more electricity, she said.

"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," said Munford.

Thousands sign petition for ACE audit

A petition calling for an independent audit of Atlantic City Electric has gained over 21,000 signatures on Change.org.

Petition creator Nick Pittman said his bill jumped by an "astounding" $600 this summer.

RELATED: Big electric bill rate hikes hitting 4 million NJ customers again

Pittman said on Facebook that the utility reached out to him and offered to explain his bill personally.

ACE explains higher bills

In a statement, Atlantic City Electric said any customer could call to ask about their bill.

The utility said three main factors were behind the higher bills: rate increases, the cost of electricity, and a scorching summer.

New Jersey experienced its second-hottest June on record this year, according to New Jersey State Climatologist David Robinson. It barely fell behind the hottest June in 2010.

The utility also said there had been a 5% distribution rate increase for ACE customers to fund storm repairs and make grid upgrades for reliability.

However, one of the largest contributors was a 13% increase in the cost of electricity approved by the state Board of Public Utilities, according to ACE. The utility does not profit from this increase; it is only a pass-through cost.

"Atlantic City Electric delivers energy but does not generate it or set the price for electric in any way," the utility said.

Read More: NJ electric bill sky high this summer? The heat is one factor

The BPU increases were approved in February after an electricity auction but did not go into effect until June 1.

Are smart meters driving higher NJ electric bills?

In his letter to the BPU, Van Drew speculated that smart meters could partly be behind the increases.

ACE said there was "no correlation" between smart meters and the higher bills. The utility said the new smart meters should help customers keep track of their daily electricity usage.

Tracy Munford, spokesperson for the BPU, said the board would send staff out to any customer who requested a witness for a meter test. They can make the request through their Customer Assistance Division at (800)-624-0241.

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