Fuel Fund

JEA’s largest recurring expense is for the fuel burned in our power plants. In fiscal year 2013 alone, fuel expenses accounted for over a third (36 percent) of the total cost to generate and distribute electric power.

JEA uses a diverse mix of fuels to power our plants, and our customers often benefit from this diversity. How? Because when the price of one fuel increases relative to the cost of others, JEA shifts generation capacity towards the more economical, lesser-priced fuel.

Index Prices of Various Fuels Commodity and Transportation

 10 Year  5 Year
Residual Oil  -39%  -68%
Natural Gas  -63%  -13%
Coal  -22%  -37%
Pet Coke  -7%  -27%
Fuel Fund Graph

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These prices are based on market commodity price data and estimated transportation costs to Jacksonville and are not the actual cost of fuel to JEA during this period.

This graph illustrates the past fluctuation of fuel prices for fuel JEA uses in our power plants. The prices are shown on a dollar per mmBtu basis which allows the different fuel types to be compared equally based on their heat content.

Predicting the price of fuel is a complex and speculative process involving global markets, weather, and electric demand. Lately, there’s been a dramatic increase in the volatility fuel prices. JEA uses complex software to try and predict future fuel expenses as accurately as possible, but we’re never right 100 percent of the time. Predicted fuel expenses help us determine the fuel charge rate per KWH passed-through to a customer’s bill. Ideally, the revenue from fuel charges exactly balances fuel expenses, but in reality, swings in total fuel cost are absorbed by the fuel fund. This helps JEA avoid frequent changes in the electric rate for our customers.