Complaints from Cape May County residents about unexpected increases in electricity bills have led to a coordinated response from the county government and the governing bodies of county municipalities.
One by one, the municipalities have been adopting a county-drafted resolution reiterating recent calls for an investigation of electricity rate increases and demanding a moratorium on all future price hikes and utility shut-offs until that investigation is completed.
And U. S. Rep. Jeff Van Drew (R-2) has promised to hold a congressional field hearing to “address the escalating electricity costs impacting New Jersey families.” He said he would “introduce five critical bills designed to enhance transparency from utility companies and protect consumers from these unfair hikes in the future.”
Referring to “substantial data’ compiled by Van Drew and his staff, the county-drafted resolution making its way through municipal governing body meetings calls on the New Jersey Board of Public Utilities to conduct a “thorough investigation into recent rate increases.”
The resolution also calls for the investigation to look at “any possible connections between the rate increases and the ongoing offshore wind development in our region.”
Each governing body that has passed the resolution to date calls for the BPU to hold a public hearing in Cape May County at which residents can voice their concerns.
The resolutions also request a moratorium on all electricity shut-offs issued by Atlantic City Electric, along with a moratorium on all future rate increases until the public has a “satisfactory explanation for these rate hikes.”
In the resolutions the municipalities are not distinguishing between rising bills and rate hikes. Atlantic City Electric makes the case that rate increases alone, of which the utility says the past year has produced a 20% rate increase across all categories, do not explain why some individuals are getting year-over-year bill increases above that 20%. The utility points to increased usage of electricity as another factor.
Asked about the resolutions moving through the towns, a spokesperson for the utility says the company is aware of the rising concern among customers. The company has no comment on the call for an investigation or public meeting, but it did say, “We adhere to the Utility Customer Bill of Rights, which details customer notice and timing requirements for all utilities and their customers across New Jersey.”
While not promising a moratorium on shut-offs, the statement states that the utility has “cold and warm weather procedures which prevent disconnection of service when temperatures are expected to be extremely cold or extremely warm.”
The statement calls for a dialogue, stating that “local officials and community members who would like to connect with us” should reach out to “our teams directly.” Contact information is available on the company website.
The issue of electricity costs as a burden on customers is likely to grow. Exelon, the parent company of Atlantic City Electric, warned in early August that recent auctions for electricity supply for 2025 and 2026 showed a tenfold growth in kilowatt hour expense. What will happen to the supply charge for electricity is still unclear, but it is almost certain to increase rather than plateau or decline.
Distribution and transmission charges will likely also rise as capital investments are made in the grid to make it ready to handle enough electricity to meet rising demand.
Atlantic City Electric has the highest overall rates per kilowatt hour of all four of the distribution utilities in the state.
Contact the reporter, Vince Conti, at vconti@cmcherald.com.
