JACKSONVILLE, Fla. — I pushed JEA for answers morning, noon and night the past couple of days and got even more answers, amplifications and clarifications about what everyone wants to know -- how much more can I expect my bill to go up?
The answer: Quite a bit.
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I first told you previously JEA projected 32%-45% compounded increase to base rates from FY23 to FY32.
Now I have learned from JEA how much that your base rate -- the fixed amount that is charged to provide you service (not including fuel) -- is projected to rise.
Per JEA, you are projected to pay approximately $2.50-$3.50 more a month beginning in FY23. ($30-$42 per year) starting in 2023 -- assuming you are only using 1,000 kWh per month, every month.
Read: Action News Jax Ben Becker says more sticker shock could be on the way for JEA customers
But that’s just the beginning.
That number compounds annually and peaks to approximately $19.50-$27 more per month in FY32 for an increase of approximately $230-$330 per year on your bill.
Why is this needed?
JEA is looking to generate an eye popping $1.254 billion - $1.642 billion of new revenue over the next ten years “to meet higher revenue requirements depending on the scenario.”
Read: Fuel costs, hot weather drive up JEA electric bills
JEA provided three annual percentage increase scenarios in its recent board packet that results in compounding costs to you.
- Optimized scenario: 2.85%
- Budget scenario: 3.47%
- High Inflation scenario: 3.72%
The utility goes on to say, “The differences between the three scenarios are mainly driven by O&M assumptions. (Operations and Maintenance) The final electric rate restructuring and rate changes will be determined as part of the ongoing cost of service/rate discussions with JEA leadership & board.”
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What’s causing all this fuss?
- No growth in sales
- Cost of Vogtle - >$200MM/ yr
- Increases in O&M costs – 4-9% growth / year
But wait, there’s more.
As I mentioned, the usage is assumed at only 1,000 KwH per month, every month which means if you are a heavy electric user, there could be an extra shock to your wallet. There are currently 478,000 electric customers according to the utilities website.
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In addition, remember base rates do not include fuel rate changes that are updated monthly and could impact the total bill up or down as well -- like a roller coaster without the nausea, maybe.
Do the math yourself since it’s back to school time and see how much more you could be projected to pay annually for the next ten years so you can start saving too.
That is today’s math lesson. For more math hacks follow @BenBeckerANjax.
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