JACKSONVILLE, Fla — On Tuesday, the JEA Board unanimously voted to move to a monthly fuel rate adjustment effective December 1st. Customers will see the change on the bill they receive in January.
A spokesperson for JEA says the fuel charge will increase or decrease along with the change in fuel costs.
“The new method is more transparent for customers and brings customer billing closer to real time fuel costs,” says Karen McAllister. She says the forecast for the 2022 fiscal year is now 40% more than the 2022 budget they developed six months ago.
JEA says a number of factors in the change include:
- Natural gas prices going up significantly in August after Hurricane Ida
- Oil and gas production losses caused by Ida’s impact
- Natural gas drilling activity is still below pre-COVID levels
- Underground storage levels are below historical average
- Winter concerns driving up prices, increasing volatility in the market
JEA expects the increase for the month of December to go up $36.60 compared to the average rate of $30.50.
“The increase translates to an average of $9.90 for customers for the average residential bill,” says McAllister.
JEA says this is a “pass-through cost” and the utility is not profiting on fuel costs.
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