JEA electric and irrigation customers face steep rate hikes
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Homes that use potable (drinking) water for irrigation, will see a massive 50% increase per month that the utility says impacts about 33,000 of its approximate 500,000 customers.
The utility is also proposing a combined increase for all customers for electric and water usage of $16.03 per month - $4.61 in 2025 and $11.42 in 2026.
Electric bills could increase even more because JEA's electric usage estimate of 1000 kWh per month is less than the actual average of 1060 kWh per household to go along with a new more expensive second tier for electric.
Finally, the utility is narrowing Tier 1 irrigation usage from up to 14,000 gallons to 7,000 gallons, which will likely push customers into more expensive Tier 2 rates.
The utility says it is raising rates in part because of its multi-billion dollar two-decade commitment to buy electricity from Plant Vogtle in Georgia which has become a burden to the utility and ratepayers which current CEO Vickie Cavey appeared to have played a role.
Action News Jax Ben Becker first reported in 2024, Cavey's resume from 2001-2012 said she was 'responsible for negotiation and management of all power purchase agreements' for JEA, which suggests the inclusion of the Plant Vogtle contract that did not have a cap to hedge against various market forces. The project turned out to be seven years behind schedule and will cost JEA customers approximately $5 billion.
Cavey's hiring as interim CEO in April 2024 led to an Office of Inspector General Investigation regarding possible Sunshine Law violations by the board which the State Attorney's office later determined there was no criminal conduct although the whistleblower told Becker it was a 'B.S. cover-up job.'
In February, Cavey received a raise to $700,000 per year after becoming the full-time CEO. Under Cavey, the utility has agreed to increase its yearly contribution to the City of Jacksonville by more than $120 million over the next five years as well as pick up $32.5 million of the costs to raise power lines over the St. Johns River to help JAXPORT attract larger ships – both moves that received push back from former CEO Jay Stowe before he resigned under pressure
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