Rep. Jeff Van Drew is demanding customer refunds after a federal audit found Atlantic City Electric overbilled transmission customers over five years.

The Federal Energy Regulatory Commission (FERC) audit, spanning 2021 to 2025, identified five areas of financial noncompliance at the utility and made 22 recommendations. Cherry Hill falls within Atlantic City Electric's service territory, which covers roughly 556,000 customers across South Jersey.

Van Drew, a Republican representing New Jersey's 2nd Congressional District, announced the findings Tuesday, Sept. 1, accusing state regulators of approving rate increases without adequate oversight. He called on New Jersey Board of Public Utilities (BPU) commissioners to resign.

"The people who paid more than they should have deserve refunds now," Van Drew said, according to Save Jersey.

FERC auditors found the utility "overbilled its transmission customers" after improperly recording settlement payments tied to alleged employment discrimination claims, NJ Spotlight News reported. Auditors also found the company improperly wrote off equipment costs and misinterpreted a 2017 federal tax law that lowered corporate rates to 21%.

FERC ordered Atlantic City Electric to file a refund report disclosing amounts owed to overcharged customers.

No dollar figure has been released.

The utility pushed back on some characterizations. Jessica Grullón, an Atlantic City Electric spokeswoman, told NJ Spotlight News on Sept. 2 that the audit "does not identify or quantify a specific overbilling amount" and that only two of the five findings identified a potential need for refunds. She said the report does not identify impacts to retail residential electric bills.

Atlantic City Electric said it is implementing the audit's recommendations and working to determine potential refunds, according to 6 ABC. The company also said the audit did not conclude it violated federal tax law.

Van Drew has pressed the issue for more than a year. In an Oct. 8, 2024, letter to FERC, he wrote that Atlantic City Electric's average residential rate of 23 cents per kilowatt-hour was about 18% higher than rates in other parts of the state, as NJ Spotlight News reported. The New Jersey average stood at 19.73 cents per kilowatt-hour.

Power bills across New Jersey spiked an average of 20% in 2025. Atlantic City Electric's parent company, Chicago-based Exelon Corp., reported $2.77 billion in profit that year. Atlantic City Electric itself reported $188 million in profit for 2025, up from $155 million in 2024.

FERC has not announced a deadline for the utility's refund report.