JACKSONVILLE, Fla. – Amid ongoing scrutiny of Jacksonville’s public utility, JEA’s Board of Directors held a budget and rate workshop Tuesday that began with a debate over attorney-client privilege — then moved into proposed rate changes and the ongoing capacity-fee dispute.
The workshop comes as a Jacksonville City Council special investigative committee continues to examine allegations about workplace culture at JEA and questions about whether the utility failed to properly collect certain water and sewer capacity fees from some commercial customers over a period of years.
That council committee also raised the possibility this week of expanding its investigation to include JEA’s lobbying contract and a major power plant project.
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Privilege waiver request: no plan to move forward right now
The board first discussed a request tied to the City Council investigation: whether JEA should waive attorney-client privilege to allow access to certain legal communications involving former JEA attorney Regina Ross.
“I just think we are in dangerous water and we’ve got to be very careful.” board member John Baker said.
City Council attorney Jason Teal told the board the request is connected to council auditors’ capacity-fee review, describing the current process as inefficient.
Several board members pushed back, warning waiving privilege could set a precedent.
“I’m not going to put this on the agenda in May and we will let them come back to us if they need more information and can help them,” Board Chair M.G. Orender said.
Rates: proposed changes and what they could mean for customers
JEA officials reviewed revenue needs and rate recommendations for water, sewer and electric service. The exact impact on customers depends on usage.
In JEA’s meeting materials, the utility provided examples showing an average residential water-and-sewer customer using 6,000 gallons a month could see a bill increase of about $6, from $89.52 to $95.34.
For electricity, the materials show a residential customer using 1,000 kWh could see a bill increase of about $3, from $134.36 to $137.38. JEA officials said lower assumed fuel costs could help offset some of the increase in base rates.
JEA’s materials also show the combined residential electric, water and sewer bill remains comparatively low against several other major Florida cities, based on the utility’s assumptions.
You can view the full breakdown HERE.
Capacity fees: decades-old issue, “additional charges” still being worked out
The board also received an update on capacity fees. JEA staff described capacity fees as one-time charges paid when a new customer connects to the water and sewer system, intended to pay for infrastructure needed for growth.
JEA officials said the current dispute centers on “additional charges” under the tariff when an existing customer expands usage “behind the meter.” Staff told the board that a consistent process for identifying and applying those additional charges “has never been developed,” and said the utility is working through legal and policy questions.
“It just hasn’t been done in the past,” Jody Brooks, Chief Administrative Officer, said. “We have identified the problem and are going to fix it.”
JEA leaders said the next steps include establishing a fair and equitable policy for applying the tariff, completing legal review, and potentially updating the tariff before bringing recommendations back to the board.
RELATED: City Council committee tries to follow the money in dispute over JEA capacity fees
What happens next
JEA officials emphasized that the rate discussion is still in the early stages. If approved, rate changes would take effect Oct. 1, with the board’s rate hearing process continuing in the coming months.
Separately, the City Council special investigative committee continues its own work, including a planned employee culture survey and continuing discussions related to capacity fees.