We measured the electrowetting behavior of aqueous salt solutions. By varying the conductivity and the frequency of the applied AC voltage we determined the range of the validity perfect conductor assumption of the standard electrowetting theory for the case of AC voltage. We show that the contact angle reduction is dramatically reduced at high frequency and low salt concentration due to Ohmic losses with the liquid. A simple RC-equivalent circuit model explains the observations. It is demonstrated that finite conductivity effects are more pronounced for sessile droplets than for droplets confined between to parallel plates.