INSIDER
Looking back at former mayor’s ties to proposed JEA sale after former utility CEO’s conviction
Read full article: Looking back at former mayor’s ties to proposed JEA sale after former utility CEO’s convictionFormer Chief Executive Officer of JEA, Aaron Zahn, found guilty of conspiracy and wire fraud on Friday and could spend 25 years in prison. His Chief Financial Officer, Ryan Wannemacher, was found not guilty. Those who were on hand when the proposed sale of JEA was beginning to play out, are starting to speak out.
Former JEA COO testifies she was surprised bonus plan was approved, knew it could result in huge payouts if JEA was sold
Read full article: Former JEA COO testifies she was surprised bonus plan was approved, knew it could result in huge payouts if JEA was soldOn Thursday afternoon, jurors heard from former JEA executive Melissa Dykes during Day 7 of the fraud and conspiracy trial of former JEA CEO Aaron Zahn and former Chief Financial Officer Ryan Wannemacher
FBI agent details investigation into ex-JEA execs accused in conspiracy case on Day 2 of trial
Read full article: FBI agent details investigation into ex-JEA execs accused in conspiracy case on Day 2 of trialFormer JEA CEO Paul McElroy said Thursday that he was “surprised” and “somewhat disappointed” when Aaron Zahn became interim CEO of the city-owned utility following McElroy’s 2018 retirement.
Ex-JEA execs accused of orchestrating Jacksonville’s largest fraud scheme layout defense on Day 1 of federal trial
Read full article: Ex-JEA execs accused of orchestrating Jacksonville’s largest fraud scheme layout defense on Day 1 of federal trialOpening statements will now begin Wednesday in a trial that is expected to last four weeks. Aaron Zahn and Ryan Wannemacher could get up to 25 years in prison if convicted on all charges.
‘This can’t go on’: Former JEA CEO recounts reaction to proposed bonus plan as testimony continues
Read full article: ‘This can’t go on’: Former JEA CEO recounts reaction to proposed bonus plan as testimony continuesA multi-day hearing ahead of the federal trial for two former JEA executives revealed new details about events surrounding the attempted sale of the utility in 2019.
‘This can’t go on’: Former JEA CEO recounts reaction to proposed bonus plan as testimony continues
Read full article: ‘This can’t go on’: Former JEA CEO recounts reaction to proposed bonus plan as testimony continuesA multi-day hearing ahead of the federal trial for two former JEA executives revealed new details about events surrounding the attempted sale of the utility in 2019.
Hearing for ex-JEA executives to feature testimony from current, former JEA & city officials
Read full article: Hearing for ex-JEA executives to feature testimony from current, former JEA & city officialsTestimonies are expected to be heard on Monday from a range of current and former officials with the city of Jacksonville and JEA before two former JEA executives stand trial later this year.
Current, former JEA, city officials to testify at hearing for former JEA executives
Read full article: Current, former JEA, city officials to testify at hearing for former JEA executivesA multi-day, pre-trial hearing for two former JEA executives facing federal charges is expected to include testimony from a range of current and former officials with the city of Jacksonville and JEA, later this month.
Federal grand jury hears testimony from former JEA officials
Read full article: Federal grand jury hears testimony from former JEA officialsJACKSONVILLE, Fla. – A federal grand jury heard testimony Thursday from former JEA officials during the investigation into the attempted sale of the utility that could have landed management millions of dollars in bonuses. The sale was halted, and major management changes began in December 2019Now the grand jury and federal investigators are looking to see if anyone should be charged with a crime. McElroy would not talk about what he said Thursday morning to the grand jury. He preceded Aaron Zahn, the CEO who was fired along with some other upper managers over the attempted sale. But the federal process is the federal process, and it’s been pretty quiet.”The reason it’s quiet is because grand jury testimony is secret.
New JEA CEO to make $560K a year, will not participate in bonus plan
Read full article: New JEA CEO to make $560K a year, will not participate in bonus planJACKSONVILLE, Fla. – News4Jax is learning more about how much money JEA is going to pay its new CEO. On Monday, an agreement was released that shows newly selected Jay Stowe will be paid $560,000 a year to run the city-owned utility. Stowe will not be entitled to any other incentive compensation and will not participate in the JEA bonus plan like other employees. Stowe was selected by the board at the end of last month. McElroy was brought in when former CEO Aaron Zahn was fired by the board in January for his role in the failed attempt to sell JEA.
Jacksonville voters approve JEA ballot measure
Read full article: Jacksonville voters approve JEA ballot measureJACKSONVILLE, Fla. – Jacksonville voters have spoken, and they want the City Council to have a say in who sits on the board of directors for JEA. The majority of voters approved an amendment to the city’s charter that empowers the City Council to appoint and remove four members of the city-owned utility’s board of directors. Previously, the charter held that it was up to the mayor to appoint all seven board members and the council confirmed those appointments. Duval County Referendum - JEA board member appointment “Shall the Jacksonville charter be amended ... to (1) grant to City Council the executive power to appoint and remove four members of the JEA Board and (2) amend the qualifications of board members?" The abandoned plan to find suitors for the utility is under investigation by both the City Council and the U.S. Attorney’s Office.
Board names Jay Stowe as next CEO of JEA
Read full article: Board names Jay Stowe as next CEO of JEAJACKSONVILLE, Fla. – During a Monday night special meeting, the JEA board picked Jay Stowe as the next CEO of the utility. Stowe is the chief executive officer and founder of Stowe Utility Group LLC, located in Chattanooga, Tennessee. He was chosen over the two other finalists -- John Lewis Hairston, the chief operating officer of Bonneville Power Administration in Portland, Oregon, and Morgan K. O’Brien, the former chief executive officer and president of Peoples Gas. Stowe will take over for Paul McElroy who was called in to replace Melissa Dykes, who herself replaced embattled former CEO Aaron Zahn. Zahn was fired by a different JEA board in January following his role in the controversial failed plan to sell the city-owned utility.
Narrowing in: JEA Board down to three finalists for CEO position
Read full article: Narrowing in: JEA Board down to three finalists for CEO positionJACKSONVILLE, Fla. – JEA is one step closer to finding its next CEO. On Tuesday, the JEA board of directors interviewed the three finalists for the utility’s open CEO position. Zahn was fired by a different JEA board in January following his role in the controversial failed plan to sell the city-owned utility. “I think we have a tough decision,” said John Baker, JEA Board Chairman. They will then turn in their rankings sometime in the next two days and the board will look to make its final decision on a CEO by Friday.
Why JEA believes your sewer bill will go up next year
Read full article: Why JEA believes your sewer bill will go up next yearJACKSONVILLE, Fla. – That water you just flushed down the toilet will likely cost more on your sewer bill next year. The majority of Jacksonville’s wastewater currently ends up in the St Johns River. JEA is going to look at different ways to discharge the water in anticipation of new state regulations that could be approved next year. Currently, 80% of JEA’s treated water goes back into the St. Johns River. Because even if the wastewater isn’t coming directly from the JEA, it could come from other sources, such as runoff from our lawns.
Nuclear plant may cost JEA customers, but not for a few years
Read full article: Nuclear plant may cost JEA customers, but not for a few yearsJACKSONVILLE, Fla. – JEA management admits that customers' bills might go up to pay for a nuclear power plant in Georgia that has cost billions of dollars and still isn’t finished. JEA promised to pay 41% of the cost of two reactors at Plant Vogtle, a joint-project with Georgia Power and other utilities located near Waynesboro, Georgia, south of Augusta. Instead of looking at the plant as a huge liability, the JEA says receiving nuclear power will help hold down electric rates in the future. JEA admits there is a change the cost overruns at the plant will require a rate increase, although not immediately. Nothing has been decided and many things could change before electricity from Plant Vogtle begins flowing.
Meet the 6 semi-finalists vying to become JEA’s next CEO
Read full article: Meet the 6 semi-finalists vying to become JEA’s next CEOJACKSONVILLE, Fla. – The firm leading the search for JEA’s next chief executive officer has narrowed the list of candidates down to six semi-finalists. The semi-finalists include:Elaina Ball , the interim chief operating officer for El Paso Electric in El Paso, Texas, who previously served as chief operating officer for Austin Energy in Austin, Texas. John Hairston , the chief operating officer for Bonneville Power Administration in Portland, Oregon, whose previous role was the utility’s chief administrative officer. Morgan O’Brien , an industry veteran who previously worked as chief executive officer of Peoples Gas, a natural gas provider in Pennsylvania, West Virginia and Kentucky. These semi-finalists are vying to replace McElroy, the interim chief executive officer who took over after the ouster of former CEO Aaron Zahn.
City Council member withdraws bill on JEA bonus, incentive programs
Read full article: City Council member withdraws bill on JEA bonus, incentive programsJACKSONVILLE, Fla. – A bill that would have given Jacksonville City Council the power to approve or deny bonus or incentive programs for JEA employees has been withdrawn from consideration. The bill, which had been part of the consent agenda for Tuesday night’s council meeting, basically said any incentive plans going forward would have to be approved by both the JEA Board and the City Council. But Councilman Ron Salem told News4Jax he worked out an agreement with JEA officials instead and decided to withdraw the bill. Despite the ongoing inquiries, the JEA Board of Directors approved a new employee incentive plan in June as part of its budget request to City Council. The previous incentive plan was put on pause for 2020 amid the controversy over the PUP.
JEA fires 9 former executives. But they will still get paid for 20 weeks
Read full article: JEA fires 9 former executives. But they will still get paid for 20 weeksJACKSONVILLE, Fla. – In his first major move since taking charge of JEA, interim Chief Executive Officer Paul McElroy placed the majority of the utility’s leadership team on paid administrative leave last month. On Monday, JEA confirmed that nine executives were terminated without cause, according to JEA. The executives will receive 20 weeks of compensation and health benefits, JEA said. “JEA is focused on moving forward with building back the trust of the community, its customers and employees,” JEA said. “Individually or collectively, real or perceived, you have been complicit or implicitly involved with or simply a direct beneficiary of the (Invitation to Negotiate) or Performance Unit Plan,” McElroy said in part.
JEA cuts deal to shutter Georgia coal-fired power plant
Read full article: JEA cuts deal to shutter Georgia coal-fired power plantJACKSONVILLE, Fla. – JEA’s Board of Directors on Friday signed off on a plan to close a coal-fired power plant in Georgia as part of an effort to shift to cleaner sources of energy. The city-owned utility and Florida Power & Light have jointly owned Plant Scherer, Unit 4, an 848-megawatt plant in Macon operated by the Georgia Power Company, since 1989. Also Friday, JEA committed to a 20-year power purchase agreement with FPL, which is meant to lower the utility’s operating costs and lower carbon dioxide emissions by roughly 1.3 million tons a year. As News4Jax previously reported, JEA remains on the hook for a financial commitment of nearly $3 billion for Plant Vogtle, a power plant located in Waynesboro, Georgia, that remains under construction. The utility tried unsuccessfully to back out of the 20-year power purchase agreement as the project has fallen behind schedule and costs have skyrocketed.
JEA Board restores bonus plan for employees
Read full article: JEA Board restores bonus plan for employeesJACKSONVILLE, Fla. – JEA employees are once again in line for a bonus after the city-owned utility’s board of directors approved a measure Tuesday restoring an incentive plan that was put on pause for 2020. The bonus structure the old JEA board approved last came under scrutiny because of a separate Performance Unit Plan, or PUP, that would basically have been a stock purchase plan that could have financially benefited executives and others in the event that JEA was sold. The plan and the effort to sell the utility sparked controversy last fall and JEA is now under city and federal investigations. Besides Zahn, it led to the resignation of former Chief Legal Officer Lynne Rhode and the dismissal of former CFO Ryan Wannemacher. In April, the Board’s replacements voted unanimously to remove interim CEO Melissa Dykes, a longtime executive who served as chief operating officer during Zahn’s stint running JEA.
JEA interim CEO places 8 executives on leave
Read full article: JEA interim CEO places 8 executives on leaveJACKSONVILLE, Fla. – In his first major move since taking charge of JEA, interim Chief Executive Officer Paul McElroy has placed the majority of the utility’s leadership team on paid administrative leave. “Individually or collectively, real or perceived, you have been complicit or implicitly involved with or simply a direct beneficiary of the (Invitation to Negotiate) or Performance Unit Plan,” McElroy said in part. The shakeup comes as JEA faces intense scrutiny from the Department of Justice and a City Council special committee. In April, the board’s replacements voted unanimously to remove interim CEO Melissa Dykes, a longtime executive who served as chief operating officer during Zahn’s stint running JEA. As part of the same move, seven individuals will join the utility’s senior leadership team on a temporary basis:Stephen Datz, Interim Chief Information OfficerBruce Dugan, Interim Chief Communication OfficerRicky Erixton, Interim General Manager, Electric SystemsAngie Hiers, Interim Chief Human Resource OfficerAlan McElroy (no relation), Interim Chief Supply Chain OfficerHai Vu, Interim General Manager, Water/Wastewater SystemsWayne Young, Chief Environmental OfficerMcElroy announced last month that Hiers, along with two others, would be temporary additions to his leadership staff.
JEA selects interim Chief Compliance Officer
Read full article: JEA selects interim Chief Compliance OfficerSteve Tuten has been named the city-owned utilitys Interim Chief Compliance Officer. That means Tuten is responsible for JEAs risk and compliance areas which include audit services, electric compliance, ethics and security. Tuten previously served as JEAs Director of Audit Services for nearly five years. Tuten has more than 35 years of internal audit, finance and consulting experience, primarily in the financial services industry. Recently, the JEA Board of Directors was overhauled and two weeks ago, the new Board of Directors brought back former CEO Paul McElroy to lead JEA until a permanent replacement is found.
Interim CEO of JEA ‘pleased with the optimism’ during transition
Read full article: Interim CEO of JEA ‘pleased with the optimism’ during transitionJACKSONVILLE, Fla. – Interim JEA CEO Paul McElroy is leading the utility through a time of scrutiny from local and federal investigations. Two weeks ago, the JEA Board of Directors brought him back to lead JEA until a permanent replacement is found. Other concerns looming over JEA involve the matter of yearly bonuses JEA management and employees receive. That is being addressed by the City Council committee looking into the future of JEA. “The City Council has two committees going on and certainly one committee looking at the future of JEA,” McElroy said.
Former JEA CEO Paul McElroy named interim leader of utility
Read full article: Former JEA CEO Paul McElroy named interim leader of utilityJACKSONVILLE, Fla. – The JEA Board of Directors on Tuesday appointed Paul McElroy, the former CEO of the city-owned utility, to lead JEA until a permanent replacement is found. The appointment comes after the JEA board voted last week to remove interim CEO Melissa Dykes. McElroy resigned as JEA’s CEO in April 2018, before former JEA CEO Aaron Zahn was hired. During Tuesday’s special board meeting, McElroy explained that he came out of retirement to restore trust and ethics to JEA. McElroy also called the Performance Unit Plan disgraceful, greedy and entirely inappropriate for a public utility.”The performance unit plan, or PUP, would have acted like a stock purchase plan.