CIVIC ENGAGEMENT: Jeff Van Drew Demands Atlantic City Electric Refunds Following Federal Audit Findings
The South Jersey congressman says a federal review identified financial noncompliance at the utility and is calling for greater transparency, lower rates and refunds for affected customers.
WASHINGTON — Atlantic City Focus received a letter from U.S. Rep. Jeff Van Drew’s office on Sept. 3, 2026, outlining the congressman’s concerns about Atlantic City Electric’s billing and accounting practices.
In the letter, addressed to Atlantic City Electric, Van Drew said his office began contacting the utility approximately two years ago on behalf of South Jersey residents who had raised concerns about their electric bills. Van Drew also said he requested that the Federal Energy Regulatory Commission and the U.S. Department of Justice review Atlantic City Electric’s market and financial practices.
According to Van Drew’s letter, a federal review identified five areas of financial noncompliance at Atlantic City Electric covering the years 2021 through 2025.
“The Commission identified five separate areas of financial noncompliance at ACE spanning 2021 through 2025, including the improper recording of compromise settlement payments that resulted in transmission customers being overbilled, mishandled write-offs of materials and equipment, and a misapplication of federal tax law,” Van Drew wrote.
Van Drew also contrasted those findings with the profits reported by Exelon, Atlantic City Electric’s parent company, and the rate increases experienced by South Jersey customers. Those comparisons and conclusions were presented by Van Drew and have not been independently verified by Atlantic City Focus.
On Sept. 3, Van Drew’s office also provided Atlantic City Focus with a statement in which the congressman called for Atlantic City Electric to determine whether ratepayers were affected and issue any refunds that may be owed.
“For nearly two years, I have been saying something was wrong with South Jersey’s electric bills,” Van Drew said. “We held hearings, pushed Atlantic City Electric for answers, and when the numbers still did not add up, I called for a federal audit.
“We finally have some answers. The audit found five areas where ACE failed to comply with federal financial rules, including overcharges involving transmission costs. While those charges occur at the transmission level, those costs are ultimately passed down to families and businesses through their electric bills.”
Van Drew asserted that the overcharges were connected to the sharp increases some customers experienced in their electric bills. He also renewed his call for the members of the New Jersey Board of Public Utilities to resign.
“It is not a coincidence that everyone’s bills went up double or triple while the overcharging was occurring,” Van Drew said. “That is why I am demanding ACE determine exactly how ratepayers were affected and refund every dollar they are owed.”
The congressman added: “South Jersey families have been through enough. Now is the time for refunds and lower rates.”
On Sept. 4, Van Drew’s office forwarded a news release stating that Atlantic City Electric estimated the financial impact on residential customers would amount to less than 2 cents per month.
Van Drew rejected that explanation.
“First we were told nothing was wrong, and people were simply using more electricity,” Van Drew said. “Then we were told residential customers were not impacted by this. Now we are being told the impact is less than two cents a month. The only thing worth two cents is Atlantic City Electric’s response. No one in South Jersey is buying it.”
Van Drew said his office would continue seeking information from FERC and again called on the state Board of Public Utilities to investigate.
“Atlantic City Electric has broken the trust of the people of South Jersey,” Van Drew said. “The answer is simple: Show us the full numbers, refund every dollar people are owed, lower the rates, and lower the transmission and delivery costs. We are not letting this go.”
The claims, interpretations and demands in this report are attributed to Van Drew and his office. They do not represent conclusions reached by Atlantic City Focus. Atlantic City Electric and the New Jersey Board of Public Utilities should be offered an opportunity to respond. Any responses received will be added to this report.
Editor’s note: This report reflects the most recent information provided to Atlantic City Focus as of publication. Atlantic City Focus will continue seeking documentation and responses from the parties involved and will update the story as additional verified information becomes available.
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