JACKSONVILLE, Fla. — A dispute between JEA and Mayo Clinic over nearly $19 million in unpaid utility fees may be just one piece of a much larger problem.
Action News Jax Ben Becker has uncovered internal documents showing more than a dozen entities may have unpaid or untracked additional water capacity fees, raising questions about record-keeping practices at Jacksonville’s public utility.
Utility bills, but not always the full cost
JEA bills customers across Jacksonville for electricity, water, and sewer service, typically tracking usage precisely. However, the internal records obtained by Becker suggest that some large customers may not have been fully billed for decades.
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The documents show more than a dozen entities flagged as “violators” for not paying additional capacity fees, charges that can apply when a customer significantly increases water consumption.
Under JEA policy, additional capacity fees may be assessed when water usage increases by 20% or more. According to a 2023 internal email, that threshold potentially applies to 168 customers, though documents indicate the utility does not have a clear accounting of what each entity may owe.
The documents show that in several cases, placeholder figures were used instead of accurate capacity records, making it difficult to determine whether customers exceeded the 20% threshold.
Major institutions listed
Among the entities appearing in internal records are several major Northeast Florida institutions, including:
- Mayo Clinic
- University of North Florida
- Florida State College at Jacksonville
- Baptist Medical Center South
One example cited in the documents involves the VyStar Veterans Memorial Arena. Records show one of its water capacity figures appears to have more than a 24,000% difference, because JEA listed a placeholder of just 348 gallons per day.
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City leaders raise alarm
Kevin Carrico referenced the issue on Monday while discussing an ongoing review by the city’s Inspector General, who, as of Tuesday, is requesting a review by the city auditor.
“We have millions, if not tens but hundreds of millions of dollars in unaccounted for dollars,” Carrico said. “We want to know where that money went and we want to know if there is more money to collect.”
Utility admits tracking problem
JEA acknowledged to Action News Jax last week that it currently does not have a formal program to properly track, identify, and bill additional capacity fees tied to customer growth or expansion. The utility says it is now working to implement a system to address the issue that goes back decades.
The Mayo Clinic dispute
The most high-profile conflict centers on JEA’s billing of the Mayo Clinic.
The disagreement stems from a 1986 agreement defining how water usage fees should be calculated. Mayo argues that it should only owe additional fees when its daily water usage exceeds 1,000,090 gallons per day.
JEA, however, says the threshold should be closer to 273,000 gallons per day, a level the utility’s internal map shows the campus already exceeds by nearly double.
Recent additional charges
Internal documents indicate that JEA issued an additional $834,000 bill to Mayo in 2023 tied to capacity fees.
The utility also assessed additional capacity fees to at least three other customers:
- Keurig Dr Pepper
- Wesley Manor
- UF Health North
Action News Jax contacted JEA and the Mayo Clinic and is waiting to hear back.
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