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JEA Board Approves Fuel Rate Adjustment for Nov. 1
Jacksonville, FL (August 17, 2004) - Following a public hearing today, the JEA Board of Directors has approved an increase in the fuel rate charge of $4 per 1,000 kilowatt hours for residential and commercial customers.
This is JEA’s first increase of residential electric rates in14 years.
Under the fuel adjustment rate increase, which will take effect November 1, most of JEA’s residential customers could pay from $2 to $8 more on their monthly bill. The average customer uses 1,200 kilowatts a month.
On the commercial side, about 31,000 general service customers (small shops and businesses) will pay about the same amount as residential customers. Larger commercial customers, about 3,300, will pay more based on electricity load patterns and rate class.
Even with the increase, JEA’s nearly 380,000 electric customers will still have the lowest residential electric rates in the state - including Miami, Orlando and Tallahassee, as well as larger cities like Atlanta, Charlotte, Houston, and New York. JEA also has among the lowest commercial rates in Florida and the southeastern United States.
In June, JEA staff proposed the increase citing a 30 percent rise in fuel costs over the last five years.
“Despite the rising costs of all fuels we use to generate electricity, we’ve been able to maintain low rates by investing in leading power-plant technologies and adopting more efficient work methods,” said Incoming JEA CEO Jim Dickenson. “We will continue to look for ways to lock in favorable pricing for our fuels, especially natural gas and oil, to minimize our fuel costs.”
JEA officials say that the utility’s fuel diversity, using coal, petroleum coke (petcoke), natural gas, oil, and solar, have allowed it to maintain the lowest rates for Jacksonville customers. Fuel and purchased power make up nearly 40 percent of the utility’s annual electric budget.”
Dickenson also said that many customers can offset the additional cost by implementing some low- and no-cost conservation measures.
“For example, setting the thermostat a degree and a half higher in the summer can reduce your electric use and offset the fuel rate increase,” he said.
Customers are encouraged to go to jea.com to find out more about energy conservation and other tips that will help them reduce their energy consumption and lower their monthly bills.
Information on Electric Fuel Adjustment Rate Increase and other changes
- Effective November 1, 2004, the fuel adjustment rate will be changed from .0185 per kilowatt hour (kWh) to .0225 kWh. This will equate to a 5.5 ($4) increase on the average JEA electric bill. The average bill (for 1,200 kWh a month) will go up from $80.68 to $85.48.
- Some large commercial clients will pay more per month, since the fuel charge represents a greater portion of their total cost. The amount of the increase will depend on load pattern and rate class.
- Based on the fuel adjustment, JEA chilled water customers (two buildings) will see a 2.3 percent increase in their monthly bill.
- Effective November 1, JEA will collect a $25 Rescheduled Work Fee from contractors that schedule work and the work cannot be completed (no shows, worksite not accessible, etc.) This fee will be collected for both water and electric work.
- JEA will enact administrative changes to bill calculation for street lighting, adjust peaking charges for interruptible/curtailable customers, and add language to the water tariff clarifying account set-up charges - all making no changes in customer bill amounts.
Cost Comparison - Residential Electric Rates in Selected City’s
(excludes taxes)
| City |
Cost per 1,200 kWh (average monthly use) |
| Tallahassee |
$124.03 |
| Jacksonville Beach |
$112.94 |
| Miami |
$90.88 |
| JEA |
$85.48(new rate as of 11/1/04)
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JEA is the eighth largest community-owned electric utility in America, providing electric, water and sewer services to more than 750,000 accounts in Northeast Florida.
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