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Customers could get one-time break on JEA bills

Fuel credit would be worth about $32 for average customers

Posted: May 12, 2014 - 10:40am  |  Updated: May 12, 2014 - 3:13pm

JEA customers likely will see a one-time break on their electric bills this summer.

The utility’s finance and audit committee unanimously recommended Monday passing on savings in its fuel reserve to customers in the form of a credit worth about $32 on an average bill. The full JEA board will make the final decision next week.

The utility maintains a reserve fund — financed through a fuel charge collected from each customer — that is available in the event fuel prices spike. The fund should have enough money to cover 15 percent of a year’s total fuel costs, or about $95 million this year.

Lower-than-expected fuel costs pushed the reserve fund to about 19 percent of the year’s total fuel costs, or about $26 million. The committee’s action would pass that money on to customers through the credit.

If the board approves, the money would be credited to customers’ accounts in July or August, said Melissa Dykes, JEA’s chief financial officer.

Fluctuating fuel costs made JEA officials uncertain about whether the reserve would have an overage this year. Because the budget for fuel costs is so large — about $500 million — even small changes in prices in the fuel market can have a big effect on the budget.

Last fiscal year, the utility credited $37 million across its customer accounts because of lower-than-expected fuel prices.

 

Nate Monroe: (904) 359-4289

Comments (2)

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it's never about the truth
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it's never about the truth 05/12/14 - 07:41 pm
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Better watch out, Alvin and

Better watch out, Alvin and the chip monks will be after this money!

Newcastle
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Newcastle 05/12/14 - 03:38 pm
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Premium Member

"The fund should have enough

"The fund should have enough money to cover 15 percent of a year’s total fuel costs, or about $95 million this year. Lower-than-expected fuel costs pushed the reserve fund to about 19 percent of the year’s total fuel costs, or about $26 million."

So 15% of the year's total fuel cost is $95 million, but 19% of the year's total fuel cost is $26 million?

I assume you meant that the extra 4% (19% vs. 15%) amounts to $26 million.

*****************

From "The Sting":

Henry Gondorff: You not gonna stick around for your share?

Johnny Hooker: Nah. I'd only blow it.

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