Should Jacksonville sell (privatize) JEA?

[Captain Zissou]

I may be bad at reading, but I don't see where they stated why they would need to raise rates by 52%. 

They've had an 8% decrease in sales over the last 13 years and expect to see that continue, but that doesn't mean a 52% increase is needed.... Are they saying their infrastructure is dated and converting to solar energy is capital intensive? 

[sandyshoes]

YES.  It's time.  Attaching some reading for your edification.   https://www.clayelectric.com/

[Tacachale]

This is just the gearing up of the push to sell of JEA. A bad idea that just keeps coming back.

[Charles Hunter]

I may be bad at reading, but I don't see where they stated why they would need to raise rates by 52%. 

They've had an 8% decrease in sales over the last 13 years and expect to see that continue, but that doesn't mean a 52% increase is needed.... Are they saying their infrastructure is dated and converting to solar energy is capital intensive? 

What I got, was that there are certain fixed costs to providing electric and water service - maintenance of the lines and the generating and distribution equipment.  Also, there are the long term debt payments, including the Vogtle boondoggle.  All of these costs are fixed and must be met to allow JEA to continue to provide service, regardless of how much electricity or water they sell.  They are already selling less of each, despite having more customers.  On the electric side, they see the advent of cheap home solar as another threat to their sales.  Less revenue coming in to meet those fixed costs, plus the variable costs of providing utility service.  It would be interesting to see what the proportions of fixed to variable costs are for electric and water service.

[Captain Zissou]

That's generally what I got.  So falling behind on both maintenance and innovation, in addition to poor decision making, has left them in very poor financial shape so their need us to bail them out by jacking up our rates. 

[Tacachale]

That's generally what I got.  So falling behind on both maintenance and innovation, in addition to poor decision making, has left them in very poor financial shape so their need us to bail them out by jacking up our rates.

Or by selling off the JEA, which is what they're implying.

[Charles Hunter]

Result of decisions over the years not to raise rates incrementally.  Whether this was political, so as not to upset the voters, or short-sighted, in not looking ahead, the result is the same - large increases are needed now.