JACKSONVILLE, Fla. — JEA is apparently the subject of an Inspector General investigation that could involve as much as $100 million in uncollected fees.
Councilmember Rory Diamond (R-District 13) teased the new possible issue at JEA on Thursday.
“Exhausted by the scandals in Jax. Another big one coming at JEA. $100 million? Whack-a-mole,” Diamond said in a social media post.
Action News Jax has since heard from three sources close to the situation who have suggested the $100 million figure is related to uncharged mandatory one-time additional capacity fees over an unknown period of time.
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In a statement, Council President Kevin Carrico (R-District 4) confirmed an ongoing inquiry by the Office of Inspector General.
“As I have said for several weeks, there is a crisis of confidence at JEA. I am very concerned to hear that the Inspector General is now looking into serious allegations related to the utility,” Carrico said. ”The people of Jacksonville deserve transparency, accountability, and clear answers, and the Council will be carefully reviewing the Inspector General’s findings.”
JEA issued a statement in response to our questions about the details we’ve heard from multiple sources.
“JEA strives to ensure that its rates and capacity fees charged for water and sewer service are applied in a fair and equitable manner for all customers. All new connections are charged an applicable water and sewer capacity fee for associated development,” a JEA spokesperson told Action News Jax. ”A program on how to properly track, identify and bill JEA customers for ‘additional’ capacity fees due to customer growth and expansion is currently being developed by JEA.”
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Action News Jax also heard from an anonymous source close to the situation that the Inspector General is likely to request the City Council order Council Auditors to conduct an independent audit of the utility to find out more about the situation.
We’ve also heard suggestions the situation could impact JEA’s bond obligations, but that’s a claim the utility denies.
“Resolutions with customers or the implementation of a program on the billing and collection of additional capacity fees will have no impact on JEA’s bond commitments,” a JEA spokesperson said in an emailed statement.
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