|
JEA Board Approves Electric Base Rate and Variable Fuel Rate Adjustments
Jacksonville, Fla. (June 19, 2007) – The JEA Board of Directors voted today in favor of a four-year phased-in Electric Base Rate adjustment. The JEA Board also approved a variable fuel rate adjustment, a new environmental charge and a residential conservation charge.
The adjustments will be effective October 1, 2007. This is the first increase in JEA’s electric base rate since 1994. The new rates will offset the increased debt service costs JEA is experiencing due to the capital improvements JEA has made in the past 10 years. The increase also provides for future generation and capacity needs – JEA’s average electric demand has been growing by 100 megawatts (MW) a year.
The 4 percent variable fuel rate increase reflects rising fuel costs. The variable fuel rate is calculated annually during the budget cycle to incorporate changes in cost from one period to another. Last year, JEA customers experienced a 2 percent decrease in the fuel rate.
The new Environmental Charge charges customers in all rates classes 62 cents per 1,000 kilo-watt hours (kWh) and supports costs associated with increased environmental regulation and compliance.
Other information:
- JEA expects to continue to have among the lowest rates in the state even with the rate increase. JEA electric base rates have not changed since 1994.
- By utilizing a diverse mix of fuels including coal, pet coke, oil and gas, JEA has been able to hold down the extremely high fuel increases experienced by customers of utilities that rely heavily on natural gas. This fuel diversity will continue to benefit JEA customers well into the future.
- Process improvements in many areas of the company have led to more efficient operations and tremendous savings in actual hard dollar figures and in avoided costs. In fiscal year 2006 alone, JEA employees saved almost $20 million in operating expenses:
- $13 million savings from better operation of our power plants.
- $3 million in workers’ compensation savings from the improvement in our safety record.
- $3.3 million saved by keeping expenses under the Operations & Maintenance budget.
For information on how you can save money on your utility bill, click here to complete your home energy audit online. For tips on how to save energy and water, click here to visit our Conservation Center.
JEA is the eighth largest community owned electric utility in the United States, providing electric, water and sewer service to more than 875,000 accounts in northeast Florida.
|
