JEA and City of Jacksonville Reach Contribution Extension Agreement


JACKSONVILLE, FL – Tonight, the Jacksonville City Council approved an extension of JEA’s contribution agreement with the City of Jacksonville (COJ). The new agreement will: 

  • Extend the terms and conditions of the agreement through September 2023 with a minimum 1 percent increase in JEA’s contribution to the City each year.
  • Continue JEA’s contribution to COJ of 30.34 metric tons in water quality credits plus an additional 13.6 metric tons in water quality credits each year in perpetuity (the additional 13.6 come from the decommissioning of the St. Johns River Power Park). The 43+ metric tons per year of water quality credits are worth more than $8.5 million per year to the City of Jacksonville to help offset future costs. 
  • Provide an additional $15 million contribution to the City for use in the Septic Tank Phaseout program. This brings the total COJ and JEA contribution toward the program to more than $45 million since 2016.
  • Provide a one-time $155,000 contribution for river-level monitoring equipment that was damaged during recent hurricanes.

As part of the agreement, JEA has also committed to manage and fund a study of water and wastewater infrastructure technology and deployment methods. This study has the potential to reduce the significant capital costs of future water and wastewater installation in existing neighborhoods that lack central water and wastewater. According to Aaron Zahn, JEA Managing Director and Chief Executive Officer, “This new approach demonstrates how JEA and the City of Jacksonville can work together to find solutions for long-standing, complex problems.”

Furthermore, JEA’s commitment to each of its corporate measures is evident:  

  • Customer Value – JEA’s continued expansion of water and wastewater services in the territory add value for underserved customers in the City of Jacksonville. An established contribution policy will allow JEA to provide stable rates.
  • Financial Value – As JEA embarks on its strategic planning, a stable contribution policy, similar to the STAR plan of debt retirement, will be critical to that effort. The stability in contribution with additional cash flow created by lower debt cost reduces the fixed cost of the business to allow for greater flexibility. Additionally, a stable contribution policy through 2023 and lower debt payments are viewed as positives by rating agencies.
  • Community Impact Value – An additional one-time $15 million contribution allocated to the Septic Tank Phaseout program will provide the opportunity for those without wastewater service identified as greatest in need to connect to JEA’s system at no cost. The program is also one of JEA’s leading Jacksonville Small & Emerging Business programs leading to local economic development. Furthermore, properly functioning river-level monitoring equipment will allow for critical information during storm events. Finally, the $8.5+ million per year of water credit value allows the City of Jacksonville to reallocate funds to other critical needs such as education, police and fire services.
  • Environmental Value – Because of its continued focus, JEA is able to provide water quality credits that have been earned over the last several years through strategic capital investment. The phasing out of additional septic tanks will provide water quality benefits for the entire Northeast Florida region.


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