Should Jacksonville sell (privatize) JEA?

[vicupstate]

I wonder if there are examples of cities that sold their electric business 5-10 years ago. It would be interesting to see the results thus far. Albeit so many things are different from state to state regardless. 

[thelakelander]

https://www.tcpalm.com/story/news/2017/10/18/florida-power-light-co-sends-vero-beach-contract-185-million-electric-sale/775408001/

https://www.nytimes.com/2013/03/14/business/energy-environment/cities-weigh-taking-electricity-business-from-private-utilities.html

[Steve]

https://www.tcpalm.com/story/news/2017/10/18/florida-power-light-co-sends-vero-beach-contract-185-million-electric-sale/775408001/

https://www.nytimes.com/2013/03/14/business/energy-environment/cities-weigh-taking-electricity-business-from-private-utilities.html

The NY Times article is particularly interesting. They talk about how municipal utilities tend to pay their executives more on par with government officials versus private business, and how after hurricanes they tend to have the power restored in days versus a week or two.

Interesting....

[Noone]

Right now the poll to sell JEA is 31 NO and 4 YES
Poll closes 2/27/18

It's easier here.

[JaxAvondale]

I'm still on the fence with Yes or No. Until the city can provide the public with the benefits of selling JEA, it's hard to vote yes. If the city said we are going to payoff the pension debt and start infrastructure improvements on certain projects within the 5 years from the date of the sale then maybe more people would be open to the idea of the sale.

[JagGator823]

I'm still on the fence with Yes or No. Until the city can provide the public with the benefits of selling JEA, it's hard to vote yes. If the city said we are going to payoff the pension debt and start infrastructure improvements on certain projects within the 5 years from the date of the sale then maybe more people would be open to the idea of the same.

Totally agree.

Just one minute detail I wanted to point out. Pension liabilities aren't really something that can be "paid off" in the same way a mortgage can (unless pensioners agree to a buyout). Sale proceeds would likely be added to the fund's invested assets, potentially reducing taxpayer's future contributions, but not necessarily reducing our liability. One of my concerns is that given the current market environment, its probably a good time to sell an asset, but isn't really a good time to invest in public markets. Not saying i'm for or against reducing the pension burden on taxpayers , I would just like to see more details before anything is done.

[BridgeTroll]

http://www.jacksonville.com/opinion/20180225/sundays-editorial-will-jea-be-only-monopoly-left-standing

Sunday's Editorial: Will JEA be the only monopoly left standing?

By Times-Union Editorial Board
Posted Feb 25, 2018 at 2:01 AM     
Civic-minded people have been asking recently, why the sudden interest in selling JEA?

What has changed?

Actually, there are two changes, one visible and one not so obvious...

[thelakelander]

What did Tampa do with the profits generated from the Tampa Electric deal?

[jaxjaguar]

As someone who's had experience with JEA, OUC, GRU and Duke. The government owned utilities have always been cheaper, faster to respond and provided better incentives.

We've had a terrible experience with Duke since switching to them 2 years ago. They've misread our meter several times and overcharged us every single time. Had I not called and complained they would've gladly kept the $20-50 each time.

They also took 2 weeks to restore our power after the most recent hurricane. Meanwhile the houses literally across the street from us (on OUC) never lost power.

Finally, their energy audits are a joke providing barely any incentive to make upgrades to your home. Maybe it's just that Duke is terrible, but it's definitely left a sour taste in my mouth towards private energy.

[jaxrox]

I wanna crash Tacachale's and SanMarcoMatt's coffee party (i will buy my own)
And, JaxJaguar, you are right. Duke is horrible. I would much rather deal with jea monopoly any day of the week than duke or vectren energy ever again!
And if this sale of jea (to whom?) has to happen, there better be transparency and voter input. But I still think it is a terrible and short sighted idea. There must be a better way to deal with the pension reform issue than to sell off one of the city's best assets that we all technically own a piece of

[DrQue]

Instead of selling a huge asset that is a stable performer, why not just raise taxes moderately?

If the analysis on a JEA sale shows a slam dunk for residents and the city, by all means proceed. I am however sceptical because ultimately there likely will be a cost in the long run. This does not have to be a zero sum deal, but I have a feeling the rate-payers would bear the burden in some manner (price, service etc.). Privatizing a major asset just seems like financial engineering to cover for our incredibly low tax rates.

https://smartasset.com/taxes/lowest-taxes-in-america

[Josh]

Instead of selling a huge asset that is a stable performer, why not just raise taxes moderately?

If the analysis on a JEA sale shows a slam dunk for residents and the city, by all means proceed. I am however sceptical because ultimately there likely will be a cost in the long run. This does not have to be a zero sum deal, but I have a feeling the rate-payers would bear the burden in some manner (price, service etc.). Privatizing a major asset just seems like financial engineering to cover for our incredibly low tax rates.

https://smartasset.com/taxes/lowest-taxes-in-america

Bahaha, because we live in a world where proposing tax increases is political suicide, but considering slaughtering your cash cow is somehow OK.

When the city talks about using the windfall from selling JEA to take care of all of the "things" the city has neglected, that should be telling enough that low taxes are why these things were neglected to begin with. Aside from the large windfall, the city will actually be taking in less each year with a private utility, so one can assume in the long run there will be more "things" neglected. Even worse would be using the windfall to build out a lot of new infrastructure that will ultimately be neglected and begin falling apart 20-30 years down the road.

[acme54321]

Instead of selling a huge asset that is a stable performer, why not just raise taxes moderately?

If the analysis on a JEA sale shows a slam dunk for residents and the city, by all means proceed. I am however sceptical because ultimately there likely will be a cost in the long run. This does not have to be a zero sum deal, but I have a feeling the rate-payers would bear the burden in some manner (price, service etc.). Privatizing a major asset just seems like financial engineering to cover for our incredibly low tax rates.

https://smartasset.com/taxes/lowest-taxes-in-america

Bahaha, because we live in a world where proposing tax increases is political suicide, but considering slaughtering your cash cow is somehow OK.

When the city talks about using the windfall from selling JEA to take care of all of the "things" the city has neglected, that should be telling enough that low taxes are why these things were neglected to begin with. Aside from the large windfall, the city will actually be taking in less each year with a private utility, so one can assume in the long run there will be more "things" neglected. Even worse would be using the windfall to build out a lot of new infrastructure that will ultimately be neglected and begin falling apart 20-30 years down the road.

Seriously.  People bitch and bitch about everything then when anyone mentions raising taxes to fix those things they lose their minds.  NEWSFLASH, YOU'RE GOING TO PAY ONE WAY OR ANOTHER.  It's just like kicking the pension mess down the road 

[jaxrox]

Welllllllll, one thought here, the city is sitting on how many vacant buildings and land parcels? They could sell some of those to start with..
**ducks to avoid the flying objects I'm sure that some of y'all might chuck@me 4 that comment **

[lowlyplanner]

Given the City's experience with the original Shipyards deal, the Courthouse garage, etc., why in the world would we expect not to get hosed in a deal that JEA's own consultant called "one of the most complex of its kind in the United States."

Chicago got royally screwed when they sold off their parking meters and garages.

Is Jacksonville going to field better attorneys and negotiators than FP&L?  Wall Street?  Hedge Funds?

If you're looking around the table and can't tell who the mark is, it is definitely YOU.