Van Drew Says Atlantic City Electric Audit Exposed Overbilling, Challenges Utility's Proposed Refunds

Congressman defends his efforts during WOND interview as federal findings raise questions about customer charges, refunds and a separate smart-meter controversy.

ATLANTIC CITY, N.J. — Congressman Jeff Van Drew is intensifying his criticism of Atlantic City Electric following a federal audit that found the utility overbilled transmission customers, while questioning whether South Jersey residents will receive meaningful refunds.

During an October 26 appearance on Off The Press with Scott Cronick on News Talk 1400 & 92.3 WOND, Van Drew defended his efforts to challenge the utility's billing practices and criticized state regulators for failing to provide relief to customers struggling with high electricity costs.

But when Cronick pressed him about the continuing financial burden on residents, the congressman acknowledged that any refunds currently being discussed could amount to very little.

The exchange comes after a Federal Energy Regulatory Commission audit identified five areas of noncompliance in Atlantic City Electric's financial and accounting practices between 2021 and 2025.

The audit made 22 recommendations and found that the utility had overbilled transmission customers because of improper accounting practices.

However, the federal findings did not establish the total amount of overbilling or determine how much, if anything, individual residential customers should receive.

That distinction has become central to the dispute between Van Drew and the utility.

Van Drew: 'They Were Caught Cheating'

Cronick confronted Van Drew about the continuing cost of electricity in South Jersey.

"Obviously energy is still a big problem," Cronick said. "We're not getting satisfaction when it comes to our electric bills. They're still sky high. We're not getting money back."

He asked what Van Drew was doing to resolve the situation.

The congressman responded by pointing to public hearings, his requests for federal intervention and the resulting audit.

"Nobody's done more than I have with the electric companies," Van Drew said.

He cited his efforts to involve the Federal Energy Regulatory Commission, commonly known as FERC.

"They were caught cheating. They were caught breaking the law because of the audit I asked," Van Drew said.

"Tell me anybody who's done more about this."

Van Drew's description was more forceful than the language used in the federal audit itself, which identified accounting noncompliance and overbilling of transmission customers.

The audit did not conclude that every Atlantic City Electric residential customer had been overcharged or establish that the company deliberately falsified customer bills.

Atlantic City Electric has accepted the audit recommendations and says it is working through the federal compliance process.

What the Federal Audit Actually Found

The FERC audit examined Atlantic City Electric's financial practices over a five-year period.

Among the findings, auditors determined that the company improperly recorded payments related to settlements of alleged employment discrimination claims.

Those accounting errors resulted in transmission customers being overbilled.

Auditors also identified problems involving the accounting treatment of equipment and supplies, bank fees and the application of federal tax provisions.

The findings resulted in 22 recommendations intended to correct accounting deficiencies and strengthen compliance.

Atlantic City Electric agreed to implement the recommendations.

However, the audit did not calculate a final dollar amount for customer refunds.

The distinction matters because transmission charges are only one component of an electricity bill. The federal audit was not a comprehensive examination of every residential bill or every reason electricity costs have increased.

Atlantic City Electric serves approximately 556,000 customers across South Jersey.

Utility Says Potential Refunds Could Be Less Than Two Cents a Month

Atlantic City Electric has disputed suggestions that the audit establishes widespread residential billing errors.

In a statement provided to Atlantic City Focus in September, the utility said its initial analysis indicated that any resulting customer refund would amount to less than two cents per month over a 12-month period.

The company said it had discussed its preliminary analysis with FERC staff and was continuing to determine the precise amount.

It also said it expected to make a public filing once the compliance process was completed.

Earlier, an Atlantic City Electric spokesperson told NJ Spotlight News that only two of the audit's five findings potentially required customer refunds.

The company emphasized that the federal report did not quantify an impact on residential electricity bills.

Van Drew has rejected the utility's preliminary estimate as inadequate.

In an October 6 letter to FERC Chairman Laura Swett, he called for federal regulators to independently determine the amount customers were overcharged rather than relying on the utility's calculations.

He also demanded full refunds with interest for any overcharges that are established.

During Monday's radio interview, Van Drew again expressed frustration with the prospect of minimal refunds.

He suggested the amount might be only a few cents per month, even as customers continue facing high bills.

No final refund amount or payment schedule has been independently confirmed.

Congressman Renews Criticism of State Regulators

Van Drew also renewed his criticism of the New Jersey Board of Public Utilities, which regulates electric utility rates and services within the state.

The congressman has repeatedly accused the board of failing to protect customers from rising electricity costs.

He previously called for the resignation of the board's members.

During the WOND interview, Van Drew again criticized the state regulatory response and argued that federal intervention had been necessary to uncover the accounting problems.

Atlantic City Electric's financial performance has also drawn scrutiny.

According to financial figures reported by NJ Spotlight News, the utility recorded approximately $188 million in profit in 2025, compared with $155 million in 2024 and $120 million in 2023.

Those figures have become part of the broader debate over affordability, although company profits alone do not establish that particular customer charges were improper.

Separate Questions Raised About Smart Meters

The federal accounting audit is not the only Atlantic City Electric issue drawing Van Drew's attention.

On October 20, the congressman called for an independent examination of the company's digital smart meters after receiving complaints from residents who said their meters continued registering electricity usage even after they turned off their homes' main electrical breakers.

Other residents reported concerns about how their meters were accounting for electricity generated by residential solar systems.

Van Drew asked federal officials to help secure an independent review by an entity without financial ties to Atlantic City Electric or its parent company.

He acknowledged that FERC does not directly regulate residential electric meters.

The complaints have not been independently established as evidence of defective meters or improper billing.

The smart-meter concerns are separate from the financial accounting problems documented in the federal audit.

An independent technical investigation would be needed to determine whether the reported meter behavior reflects equipment problems, wiring configurations, billing discrepancies or other causes.

Election Politics Enter the Debate

The utility dispute has also become an issue in the race for New Jersey's 2nd Congressional District.

During the WOND interview, Van Drew alleged that Atlantic City Electric executives support his Democratic challenger, Cape May Mayor Zack Mullock, because of the congressman's criticism of the utility.

"Atlantic City Electric executives supported him," Van Drew said. "They don't want to see me back in because I've been fighting like hell."

Van Drew referenced a social media post that he said demonstrated that support.

The specific post and the identities of the executives were not independently verified for this report.

The allegation does not establish that Atlantic City Electric, as a company, endorsed Mullock or participated in campaign activity.

Mullock and Van Drew are competing in the November 3 general election.

The utility controversy has emerged alongside broader campaign disagreements over affordability and the role of federal and state government.

What Happens Next?

Several important questions remain unanswered.

Federal regulators must still determine whether the utility's compliance filings adequately address the audit findings and whether refunds are warranted.

Atlantic City Electric has indicated that it intends to publicly disclose its final calculations.

Van Drew wants an independent determination of those amounts, arguing that customers should not have to rely solely on the company's estimates.

Meanwhile, the separate concerns about smart meters have not yet produced publicly confirmed findings of widespread defects or inaccurate billing.

For South Jersey residents, the central question remains the one Cronick raised during Monday's interview: When will customers see meaningful relief from high electric bills?

The federal audit established that Atlantic City Electric made accounting errors that resulted in transmission overbilling.

Whether those findings will translate into significant refunds for residential customers remains unresolved.

Congressman Jeff Van Drew discussed Atlantic City Electric, the federal audit and rising electricity costs during an October 26 interview on Off The Press with Scott Cronick, heard weekdays from 4–6 p.m. on News Talk 1400 & 92.3 WOND.