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JEA's Electricity No Longer State's Best Price

POSTED: Wednesday, May 21, 2008

As JEA's impending spike in electric bills outraged many of its customers, a survey by Channel 4 found Jacksonville residents still get a relatively good deal for their power.

After the JEA board voted on a fuel surcharge that would effectively raise electric bills about 15 percent in July, customers were vocal about the fact they pay too much.

"I don't think it’s fair because I am a single parent on a fixed income," said Rose Bethea as she paid her electric bill Wednesday. "I can barely afford to live."

Currently, the JEA's electric rate is the lowest of any utility in Florida. After the surcharge is added in July, we move to the middle of the pack for utility prices across the state.

If Florida Power and Light does not raise their rates, its customers as close as Clay County and Jacksonville Beach and as far away as Miami will pay less per kilowatt hour. In fact, after July Clay Electric's price will be the lowest in the state.

Electric customers of Progress Energy in St. Petersburg and TECO in Tampa will still pay more than those of JEA. The highest price in the state is another municipal utility -- Tallahassee Electric -- with rates more than 20 percent higher than the JEA's, even after the July increase.

The JEA said that it managed to avoid passing along higher costs to customers for many years, but that changed in 2005, when the JEA began adding a fuel surcharge. Then, in 2007, for the first time in 14 years, the JEA raised its rates 22 percent.

JEA says they have to make these changes in order to keep the city-owned utility financially solid, which should keep their credit rating high and saves money on loans taken to build its infrastructure.

"It has been very challenging," JEA spokeswoman Gerri Boyce told Channel 4's Jim Piggott. "We have seen a lot of changes. We also changed our pricing philosophy."

And that means the JEA's customers have to adjust, as well.

"I got to pay them because I got to live," Bethea said.

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