JACKSONVILLE, Fla. — JEA is looking to raise rates later this year to make up for projected budget shortfalls of nearly $107 million.
Despite the proposed hikes, though, JEA claims the average customer could see their bills go down.
During Monday’s rate hearing, JEA Vice President of Enterprise, Strategy & Planning Juli Crawford said the rate increases are necessary to keep up with drops in revenue, capital projects, and increase inflationary pressures.
“I couldn’t say specifically what our game plan would be if rates are not raised on how to keep the system running, but we see it day to day that there’s inflationary pressures on everything, and we as a utility, we realize those inflationary pressures as well,” said Crawford.
For water and sewer, residential customers could see rates increase between 4.3 and 7.5 percent, depending on their usage.
Residential irrigation rates would also go up between 7.2 and 9.5 percent based on usage.
On the electric side, rates could jump between 1.6 and 3.1 percent, with the base monthly rate expected to increase by $1.75.
But even with the rate increases, JEA projects average monthly bills might actually drop by about 3.3 percent.
That’s because JEA has strategically hedged on the price of natural gas.
JEA projects a customer who paid $248 last month for their total bill would likely pay about $240 next March under the proposed rate changes.
“When you combine all of those together, some may be going up, but fuel charge is going down more than the others are going up,” said Crawford. “So, altogether, when you look at your bill, it will be lower if those fuel charges come to fruition.”
The decision on whether to raise rates will be made on June 30th, and the new rate structure would kick in on October 1st if approved.
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