QuoteThe board voted to raise electric charges to meet rising costs for fuel, especially petroleum coke, burned at JEA's power plants. That's on top of a hike in water rates that had been planned for years
SOURCE: http://jacksonville.com/news/metro/2010-06-15/story/jea-oks-fee-hike
Now, I have a few problems with this. Because after some rudimentary research. It appears that prices aren't going up all that high for petroleum coke (especially compared to other fuel sources.)
QuoteYear-to-date, total net generation increased 3.4 percent from 2009 levels. Net generation attributable to coal-fired plants rose 4.2 percent. Natural gas-fired generation was up 10.8 percent. Conversely, nuclear generation declined 0.4 percent, and petroleum liquid-fired generation was down 37.9 percent.
Year-to-date, coal-fired plants contributed 48.2 percent of the power generated in the United States. Natural gas-fired plants contributed 20.5 percent, and nuclear plants contributed 20.3 percent. Of the 1.0 percent contributed by petroleum-fired plants, petroleum liquids represented 0.6 percent, with the remainder from petroleum coke. Conventional hydroelectric sources provided 6.3 percent of the total, while other renewables (biomass, geothermal, solar, and wind) and other miscellaneous energy sources generated the remaining 3.6 percent of electric power (Figure 2).
(http://www.eia.doe.gov/cneaf/electricity/epm/fig3.jpg)
SOURCE: http://www.eia.doe.gov/cneaf/electricity/epm/epm_sum.html
Petroleum coke remains the cheapest available fuel. And is still the cheapest per MMBtu. So why the rate hike, JEA? The statement from the DOE source says that Petroleum coke generation is down. But why? Is this anecdotal in that we may be seeing JEA cut production? Does anyone have a source for JEA MMBtu production?
It doesn't make sense why you're making a 10% increase to rates when you're looking at maybe a 3% increase in fuel costs.
The other disparity is the cost of petroleum coke fired plants' cost per MMBtu in Florida versus the rest of the united states.
Price fixing? Is it really harder to get petroleum coke in Florida than it is in Illinois? The chart I found says that for FLORIDA ALONE the price for 1 million BTUs generated increased 11% versus most everywhere else (where the price per million BTUs actually DECREASED considerably.)
Where are we getting our petroleum coke from that is so much more expensive? Or why is it more expensive to generate 1 million BTUs of power here in Florida than it is elsewhere?
Interesting chart: http://www.eia.doe.gov/cneaf/electricity/epm/table4_12_b.html
I think it is time for the citizens of Jacksonville to gather a referendum to get rid of JEA and open it up to a private power company (like FPL).
It seems JEA is making arbitrary price increases quite often in order to pay for thier bloated staff and hefty pensions. I have nothing against JEA employees, but I am sure another company could generate electricty cheaper and face more scurtiny from regulators if they try to hike prices too much, too fast.
Quote from: chipwich on June 15, 2010, 05:47:42 PM
I think it is time for the citizens of Jacksonville to gather a referendum to get rid of JEA and open it up to a private power company (like FPL).
It seems JEA is making arbitrary price increases quite often in order to pay for thier bloated staff and hefty pensions. I have nothing against JEA employees, but I am sure another company could generate electricty cheaper and face more scurtiny from regulators if they try to hike prices too much, too fast.
Now is NOT the time to further burden the residents of this city!
JEA buys most of its power from plants that manufacture it in Georgia. Cheaper to buy power from there, since coal does not have to travel as far. SJRPP sends its power to south Florida and its cheaper to make it here than down there. Seminole electric in Putnum is taking CSX to court over the tariffs that they level on coal delivered to their plant.
A referendum is not the answer. 3-5% cuts, like the City would go a long way and goodwill. JEA does not seem to see a need to cut back. I say this while neighbors down the street are without power and I only lost mine for 1 hour tonight in Avondale. So its tough to say, when power is so important.
Apparently we get most of our petroleum coke by barge delivered on ships to Blount Island terminal (At least for the North Side Generating Station. (You know those tubes that run over Hecksher drive to the power station?)
SOURCE: http://en.wikipedia.org/wiki/JEA_Northside_Generating_Station
Interesting note about the NSGS is that it doesn't JUST use petroleum coke to power. All of the other fuels that they use are actually going down in price (see chart I posted in first post).
Me thinks they need a better contract negotiator on the fuel buying side. But me also thinks that they may be well paid enough that they just don't care.
It's my belief that this relates to the JEA's contract in GA for the nuclear plant to be added in Augusta. You are right that our coal and gas generation should not be costing this much.