Plant Vogtle reportedly places JEA under ‘financial strain,’ rate increase for customers proposed

JACKSONVILLE, Fla. — Your utility bill could soon go up as JEA is considering a rate increase that would add more than $15 combined to your bill per month over the next two years.

“We’ve come to a point where we can’t do anything more from a financial modeling standpoint to address this,” Joe Orfano, JEA’s deputy CFO, said referencing Plant Vogtle.

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The utility has a 20-year power purchase agreement with the plant that has a $190 million debt service.

“It’s placing our electric system under financial strain,” Orfano said.

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It’s one reason why your average bill could increase from about $205 per month now to $210 per month next year, and then $221 per month in 2026 including electric, water, and sewer.

The rate increase was discussed during Tuesday’s board workshop and will be brought back to the board in November before a vote in February. If approved, it would go into effect in April next year.

“We’re mindful of the impact of these increases on our customers — particularly lower income,” Orfano said, mentioning the programs in place to help customers who need it. But without the rate increase, JEA said there would be an approximate $50 million gap in the budget.

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On the water and sewer side, the increase will help pay for capital improvement projects as the utility has seen the growth of water. Water and sewer have not seen rate increases since 2012 and JEA promised board members it will review rates annually in the future to avoid sticker shock.

“Hopefully there will be a season where our revenues are matching our requirements and there will not be a need. However that doesn’t negate the fact we should look at it every year,” Victor Blackshear, JEA’s director of financial planning and rates, said.

Even with the raise, JEA said it will still be lower than other utility rates in cities across the state except for Orlando and Miami.

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