Soon JEA won't be cheapest in state

[thelakelander]

Coming fuel charge and rate boosts will put it near the top.

By DAVID HUNT, The Times-Union

JEA is losing bragging rights for having the cheapest electric rates statewide.  A $15 monthly fuel charge increase coming in July will thrust the Jacksonville-owned utility's prices above those of Florida Power and Light, Gulf Power and Progress Energy, according to a Times-Union review of state records. As well, the coming price for 1,000 kilowatt-hours, $110.93, will rise above a state average Jacksonville has for years sat well-below.

The 1,000 kilowatt-hour rate is used as a benchmark in a billing formula. The average Jacksonville home uses 1,250 kilowatt-hours each month.

The increases come during a sluggish economy in which fewer customers can afford to pay their bills. The number of customers subjected to shutoffs has increased nearly 24 percent this year, JEA spokeswoman Gerri Boyce said.

full article: http://www.jacksonville.com/tu-online/stories/052208/met_281510196.shtml

[Driven1]

Remember - before we go off on JEA only - we don't have just JEA to thank for this.  JEA did not institute the $15 monthly fuel "fee".  That "fee" was in a proposal that also included "fees" called waste removal and storm drainage.

[Lunican]

So the new fuel surcharge is a flat rate and not based on how much electricity is consumed?

[Driven1]

I may have been wrong on the proposal of the $15 fee NOT coming from JEA.  Can someone confirm if I am wrong?  Btw, according to this article, Suzanne Jenkins was the only person to speak against the increase.

http://www.news4jax.com/news/16339598/detail.html

[Jason]

Thank you Governor Christ.  Your homestead exemption plan is actually costing us more money than it is saving.

[David]

Here's a letter Jim Dickenson sent out to all of us:

JEA BOARD ACTION â€" A MESSAGE FROM CEO JIM DICKENSON
Today the JEA Board approved a fuel rate increase of $15 per 1000 kilowatt hours (kWh) to balance the fuel fund for fiscal year 07/08 and to maintain our bond rating. They also called for a public hearing in July to hear staff recommendations for proposed water rate increases.

Over the last almost four years while I have been CEO, we have worked hard to establish a balanced fuel fund and to establish rates in both the electric and water business that would sustain the company financially for years to come.
   
JEA does not gain any operating revenue from fuel charges. Fuel cost is a direct pass-through to the customers. What JEA pays for fuel is what customers pay. Our pricing philosophy dictates that we have a balanced fuel fund. This helps us maintain our present AA bond rating, which determines the amount of interest we pay on our debt.

  Coming on the heels of the City’s Storm Water and Solid Waste fees, the JEA rate increase is not going to be easy on customers, who already have a difficult time paying their utility bill.

   I’m asking each of you to have an extra measure of courtesy for our customers even when they express frustration, as they surely will. I know that those of you “on the front lines” with direct customer contact will take the biggest hit. 

(not me thankfully, they pay me just to keep the computers & network running)


I wouldn' be surprised if the other utilities follow suit and propose a similar increase. If you google electric rate hike you'll see it's hitting alot of utility/co-ops around the country.

Either way, I feel the pain too, no breaks on the electric bills for jea employees. My bill's already high enough.

[Driven1]

the Governor had it right.  and the people of Florida had it right.  his plan would not have passed without our approval.  and he has been proven so popular here in Florida that he is one of 3 invited to McCain's place this weekend to discuss a possible VP position.

I think the people of Jax had it wrong because they fell hook, line & sinker for Peyton's bemoaning.  it is crazy how the people of this city refuse to hold Mr. Peyton responsible.  they let him boondoggle project after project and take actions that border on corruption (if they aren't actually) and then us taxpayers ask for relief and he comes back like a little child that spent his allowance on candy and asks us for more.

i was shocked that even some of the people on this board fell for this stuff.

[Lunican]

OK, so the TU article is misleading and this is not a $15 fuel surcharge fee, but a rate increase of $15 per 1000kwh?

[David]

OK, so the TU article is misleading and this is not a $15 fuel surcharge fee, but a rate increase of $15 per 1000kwh?

yeah, that's pretty much it. It's basically a 15% increase for the summer months, dropping down to the planned increase later on. I'll have to find that document to verify though, it's a bit confusing if you just glance over it.

[David]

No arguments here. it just seems like a dick move.

"btw, rates are going up 15%, NEXT MONTH" *muahahahha*

[Downtown Dweller]

Cool! In two years that 60K to go off grid won't seem so expensive..I might have to go for it! Funny how solar is coming down in price and grid power just keeps raising. Pretty soon they will price themselves out of the market