Van Drew Blasts Atlantic City Electric: ‘They’re Ripping People Off’

Congressman says he would trade a small refund for meaningful rate relief as fallout continues from federal audit

U.S. Rep. Jeff Van Drew is escalating his criticism of Atlantic City Electric, accusing the utility of “ripping people off” and saying his priority is no longer simply getting customers refunds — it is bringing down what South Jersey residents pay going forward.

Van Drew, R-2nd, made the comments during an appearance on Off The Press with Scott Cronick, heard on WOND, as controversy continues over a Federal Energy Regulatory Commission audit that identified five areas of noncompliance involving Atlantic City Electric.

“I’m sick of it,” Van Drew said. “And my electric bill last month was $600.”

Van Drew said his office intends to release additional information concerning the utility's financial performance.

“Look at their profits,” Van Drew said. “And we’re going to come out with this information. They have made more money than ever.”

He then leveled one of his strongest attacks yet against the utility.

“They’re ripping people off. They’re killing us,” Van Drew said. “And I’m sick of it. And somebody’s got to stand up to them. And I have.”

Van Drew’s claims about the company's profits were not independently established during the interview, and he did not provide the financial information he said his office plans to release.

Audit fuels fight over electric bills

The congressman's comments follow the release of a FERC audit examining Atlantic City Electric's compliance from 2021 through 2025.

The audit identified five areas of noncompliance and resulted in 22 recommendations. Among its findings, federal auditors determined that Atlantic City Electric overbilled transmission customers in certain instances and identified accounting and tax-related compliance issues.

The audit itself did not calculate how much residential customers may ultimately have paid because of the findings.

Atlantic City Electric has disputed suggestions that the audit explains the dramatic increases many customers have experienced in their electric bills.

The company has said its initial analysis indicates that any customer refund resulting from the audit would amount to less than two cents per month over a 12-month period, subject to confirmation with FERC staff. ACE has also said it takes the audit findings seriously and is implementing its recommendations.

That response has drawn sharp criticism from Van Drew.

“The only thing worth two cents is Atlantic City Electric’s response,” Van Drew said in a statement last week.

Van Drew has demanded that ACE provide a full accounting of the overcharges, refund any money owed to customers and lower rates and transmission and delivery costs. He has also renewed his call for the entire New Jersey Board of Public Utilities to resign.

‘I would be happy not even to get money back’

But during his WOND interview, Van Drew went a step further by saying that, for him, reducing future electric costs could be more important than receiving a relatively small refund.

“I would be happy not even to get money back, but to do something about the outrageous rates,” Van Drew said.

He said his focus is on changing what South Jersey customers will have to pay in the future.

“We have to fix it,” Van Drew said. “We can’t afford this.”

That represents a notable emphasis as the dispute shifts from what customers might receive back because of the audit to the larger question of why electric bills have risen and what can be done to reduce them.

Atlantic City Electric has maintained that the potential refund associated with the FERC findings is extremely small and should not be conflated with broader increases in customers' electric bills.

Van Drew questions accounting practices

Van Drew also zeroed in on accounting issues identified by federal auditors.

“They were using, in some cases, you know, for capital — they were putting operating expenses in capital,” Van Drew said.

He then speculated that such expenses could have included employee compensation, while acknowledging that he did not know whether that actually occurred.

“Which could include pay raises,” Van Drew said. “I don’t know if it did or not, but it certainly could have.”

The distinction is important: the audit identified accounting problems, but Van Drew did not present evidence during the interview establishing that executive pay raises were among the expenses improperly accounted for.

Renewed attack on BPU

Van Drew also again directed his anger at the New Jersey Board of Public Utilities, which regulates electric utilities in the state.

“We have a terrible BPU,” Van Drew said. “Damn it. They should resign. They didn’t do their job. I’ve said this all along.”

Van Drew previously argued that the BPU approved rate increases while failing to identify the financial compliance problems later uncovered by federal auditors.

The congressman has been pushing federal regulators to scrutinize Atlantic City Electric for months and has cited rising energy costs as one of the biggest financial pressures facing South Jersey families.

The FERC audit has given Van Drew additional ammunition, but a central question remains unresolved: How much, if anything, did the problems identified by federal auditors actually cost individual residential customers?

Atlantic City Electric says its preliminary calculation indicates the audit-related refund would be less than two cents per month over one year.

Van Drew isn't buying the idea that the controversy should end there.

“I’m not giving up, man,” he told Cronick. “I know it’s hard. You’re a big dog to go after. But I am.”

Van Drew made the comments on “Off The Press with Scott Cronick” on WOND.