Office of Inspector General Issues Findings, Recommendations on JEA Additional Capacity Fees

2026-06-25

JACKSONVILLE, FL, June 25, 2026 –– The City of Jacksonville Office of Inspector General (OIG) has concluded a three-month review of JEA’s collection of additional capacity fees from commercial customers. The OIG concluded that JEA has taken appropriate measures to address and resolve the issues of uncollected additional capacity fees.

“We appreciate the Office of Inspector General’s thorough review of this complicated issue,” JEA Managing Director and CEO Vickie Cavey said. “We are working diligently to create a process that addresses an issue that dates back several decades.”  

The OIG initiated its review in March in response to allegations that JEA was not properly collecting fees from commercial customers, with a focus on attempts to collect additional fees from the Mayo Clinic. 

Initial capacity fees are one-time, upfront payments required before a water meter is installed and utility service begins. Charges are determined based on water meter size or projected daily flow (consumption). At issue are additional capacity fees required under JEA’s Water and Sewer System Tariff, which are assessed when a property's average water usage exceeds the initial estimate by more than 20 percent.

In 2022, JEA notified the Mayo Clinic that additional capacity charges were required for increased water and sewer usage due to growth on the Mayo campus. Since then, JEA has been working with the Mayo Clinic to determine the appropriate assessment. During that process, JEA also identified that additional capacity charges had not been consistently applied to certain legacy accounts with large water meters.

Based on its review, the OIG determined that JEA’s inability to manage and collect additional capacity fees resulted from:

• Historical data gaps and record transitions 
• Technological and systemic failures 
• Organizational silos and communication failures 
• Behind-the-meter growth and infrastructure 
• Lack of policy and resource prioritization 

When Cavey became aware of systemic issues, she formed a Capacity Fee Project Team to consolidate oversight and management of additional capacity fee collections. 

Based on its review, the OIG wrote that it had determined that JEA had taken appropriate measures to address and resolve additional capacity fee issues with commercial account holders, such as the Mayo Clinic. As a corrective action, it recommended that JEA ensure its leadership shares the solutions and completion dates from the Capacity Fee Project Team with the JEA Board of Directors during publicly noticed meetings.

In response to the OIG’s report, Cavey wrote, “We support the recommended corrective action and will share the solutions and completion date from the Capacity Fee Project Team with the JEA Board during a publicly noticed meeting.” 

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About JEA

JEA is a municipal utility providing safe, reliable and affordable services to more than one million residents across four Northeast Florida counties. JEA is not owned by investors and does not earn a profit. It was created by the City of Jacksonville to meet the electricity and water needs of those who live in Jacksonville and surrounding communities. JEA’s 2,200-plus workforce is dedicated to meeting customer needs, both today and for generations to come, while protecting our precious natural resources and supporting our region’s growth and economic development. Learn more at jea.com.

Media Contact

Karen McAllister
media@jea.com | 904-665-5500

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