TRENTON — Federal and state lawmakers are calling on Atlantic City Electric to reimburse customers after a federal audit uncovered accounting problems that increased, or potentially increased, charges to transmission customers.
U.S. Rep. Jeff Van Drew joined state Sen. Carmen Amato Jr. and Assemblymen Brian Rumpf and Gregory Myhre in demanding refunds for customers affected by any improper billing.
The Federal Energy Regulatory Commission reviewed Atlantic City Electric’s financial practices from Jan. 1, 2021, through Dec. 31, 2025. Auditors identified five areas of noncompliance and issued 22 recommendations for corrective action.
Auditors found the utility improperly classified certain settlement payments as operating and administrative expenses. That accounting method inflated its annual transmission revenue requirement and resulted in transmission customers being charged too much.
The audit also questioned Atlantic City Electric’s accounting for certain inventory write-offs, which may have similarly increased the revenue requirement and costs paid by wholesale transmission customers. Other findings involved bank fees and the company’s application of federal tax requirements.
“For years, we have been saying something was wrong with what people in South Jersey were paying for electricity,” Van Drew said.
Van Drew said his office sought federal intervention after holding public hearings, questioning the utility and receiving explanations that did not resolve concerns about customers’ bills.
“This has to be made right,” Van Drew said. “The people who paid more than they should have deserve refunds now.”
Amato, Rumpf and Myhre, who represent New Jersey’s 9th Legislative District, said Atlantic City Electric serves many constituents who are already struggling with rising utility costs.
The lawmakers said customers should quickly receive reimbursement for any incorrect charges identified through the federal review. They also pledged to monitor the matter as escalating electric bills contribute to New Jersey’s broader affordability problems.
Atlantic City Electric accepted the audit recommendations and is reviewing whether the accounting issues ultimately affected retail customers and whether refunds are warranted.
The utility maintains that the audit did not conclude it violated federal tax law or calculate a specific amount of overbilling. Company officials said two of the five findings require further examination to determine whether customers were affected.
No refund total has been announced, and regulators have not ordered Atlantic City Electric to issue individual payments to residential customers. The audit examined the utility’s accounting and financial procedures rather than the accuracy of household electric meters.
Van Drew is seeking both customer reimbursements and lower electric rates. He also renewed his call for members of the New Jersey Board of Public Utilities to resign, accusing the agency of repeatedly approving rate increases without adequately examining the costs behind them.
“We fought for this audit because we knew something was wrong,” Van Drew said. “The next step is making sure the people of South Jersey get their money back and finally see some relief on their bills.”
The Federal Energy Regulatory Commission will oversee Atlantic City Electric’s implementation of the audit recommendations.
