Here's why electric bills in South Jersey have been high this summer
BELLMAWR, NJ - Some South Jersey residents are seeing sticker shock this summer over their sky-high electric bills. The local utility company says supply and demand issues along with a hot summer is to blame.
"The total amount is $585" said Mays Landing resident when asked about her latest Atlantic City Electric bill.
Placid says the bill more than doubled in August despite the fact she has a roof full of solar panels she got installed to help lower utility costs. With solar power, her bills should be less than 100 bucks a month.
"I’m not sure why I got it now I need to ask them more questions like why is my bill still high" said Placid.
She’s one of many unhappy Atlantic City Electric customers whose bills have skyrocketed since a rate hike on June 1.
Customers even created a Facebook page called "Victims of Atlantic City Electric". Customers are posting pictures of their bills along with captions like "OK. I’m officially freaking out over my bill. What do we do?"
Another customer posted "I have solar. Last years bill was around 15 dollars. This year it’s $415".
"We are now the most expensive rates in the entire state of New Jersey and that’s never happened before" said Rep. Jeff Van Drew.
Van Drew, who represents New Jersey’s 2nd District that covers most of Atlantic City Electric’s coverage area tells Fox 29 he’s heard from thousands of upset customers.
Some are wondering if they’ll be able to pay their bills. Others are blaming the rate increase on the installation of new smart meters.
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Van Drew wrote a letter to the New Jersey Board of Public Utilities that approved the rate hike, demanding answers.
"Everybody’s bill is going to be a bit different" said Atlantic City Electric Spokesperson Candice Womer.
The utility owned by Excelon calls the increases a "perfect storm" of reasons. Saying supply rates or the commodity price of electricity increased 13%.
They also included a 5% increase in the rate distribution which pays for things like reliability upgrades, the Smart Energy network and severe storm damage mitigation.
The company also says the summer heat contributed to many customers using more power.
"New Jersey experienced the second-hottest June since 1895 and it was also the 7th hottest July since 1895, so we’re seeing above average temperatures that are also affecting the way we are using energy" added Womer.
Regardless of the reason, Van Drew a customer himself, is looking for immediate action, including a rate freeze. "One to do an investigation, secondly to have an accelerated New Jersey hearing on this and thirdly to suspend any future increases in rates until we hash this out,"
Atlantic City Electric says if customers have problems with their bills, they can reach out to customer service to make sure there is a mistake.
The utility also provides customers tips and information to help them manage their energy use.
Customers can contact Atlantic City Electric at 800-642-3780 to discuss payment arrangements or visit the website to learn more about energy assistance options.
Customers can get financial assistance if they are having trouble paying their utility bills. The Low-Income Home Energy Assistance Program provides grants based on a household's income size, type of fuel and type of dwelling, with no pay back required. South Jersey customers can apply for LIHEAP energy assistance through the Department of Community Affairs website, by contacting their local LIHEAP Agency or by calling 800-510-3102.
Residents also can access the Department of Community Affairs self-screening tool to help determine what energy assistance benefits they may qualify for.
In a statement from the New Jersey Board of Public Utilities, a spokesperson said the following:
"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 lend to an increase, especially in the summer. 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. 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. 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 this website. When requested, BPU staff will witness a meter test to ensure that the meter is functioning properly. If it is determined that there is an error with the meter or a billing error in general, customers are entitled to a refund on the amount they were overbilled. The NJBPU reminds customers who are experiencing trouble paying their bills to contact their utility to set up a deferred payment plan or visit our website to learn about energy assistance programs here. The Board recently announced the Residential Energy Assistance Payment, a one-time bill credit for qualifying ratepayers, funded by unspent New Jersey Clean Energy Program funds to provide relief in the form of a $175 credit for those most in need of assistance."