JEA

Last updated
JEA, Inc.
Company type Public-benefit
Industry Public Utility
PredecessorCity of Jacksonville Electric Department (electricity, prior to 1968)
Department of Public Utilities (water and sewer, prior to 1997)
Jacksonville Electric Authority [1]
Founded1968
Headquarters Jacksonville, Florida
Key people
Vickie Cavey, CEO and MD [2]
Products Electric utility
Drinking water
Sewage treatment
Chilled water
Reclaimed water
Total assets $7.9 billion (2021)
Total equity $3.5 billion (2021)
Number of employees
2,000 approximate (2021)
Website www.jea.com

JEA, located in Jacksonville, Florida, is the eighth-largest community-owned electric utility company in the United States and the largest in Florida. As of 2022, JEA served more than 1 million Northeast Florida residents with electric, water, sewer and reclaimed water services. JEA also provides some customers with natural gas sales, and access to dark fiber. In addition, JEA works with the City of Jacksonville to maintain its streetlight system. Besides Jacksonville (Duval County), JEA also serves customers in Clay, Nassau and St. Johns counties.

Contents

History

Jacksonville's water and sewer systems have been operated by the city since 1880.

City of Jacksonville Electric Department

In 1895, the first electric power station, Main Street Power Plant comes online, providing night-time lighting for the first time to downtown.

In 1943, the Baldwin Interconnector comes online, providing backup power to nearby Naval Air Station Jacksonville and Camp Blanding.

In 1950, the Southside Generating Station comes online, and is hooked up to the city's electric grid.

On September 9, 1964, Hurricane Dora devastates 95 percent of the city's electric grid.

Jacksonville Electric Authority

On August 8, 1967, as part of the consolidation of the City of Jacksonville and Duval County governments, the City of Jacksonville Electric Department became an independent body, renamed Jacksonville Electric Authority, now operating in accordance with Article 21 of the Jacksonville Code of Ordinance.

According to Article 21 of the Jacksonville City Charter,

"JEA is authorized to own, manage and operate a utilities system within and outside the City of Jacksonville. JEA is created for the express purpose of acquiring, constructing, operating, financing and otherwise have plenary authority with respect to electric, water, sewer, natural gas and such other utility systems as may be under its control now or in the future." [3]

During the 1970s, JEAs electric rates were among the highest in the nation. [4] Royce Lyles became JEA Managing Director on September 1, 1979 and the utility began diversifying its fuel mix. Rates began to drop, eventually becoming the lowest in the state and near the bottom in the Southeast. [5]

Walt Bussells was appointed Managing Director on September 8, 1995, following Royce Lyles' retirement.

On June 1, 1997, Jacksonville's Department of Public Utilities, water and sewer operations merged into the Jacksonville Electric Authority. The utility subsequently became known as JEA as it provided a broader range of services beyond electric service.

Bussells embraced new technology and in 2002, JEA introduced online bill payment and implemented network meter reading. In 2003, JEA’s first chilled water facility became fully operational and began providing chilled water for air conditioning in downtown buildings. Since then, JEA has completed three additional facilities and has contracts to provide sixteen (16) locations with chilled water. Chilled water clients include Vystar Veterans Arena, 121 Financial Ballpark, Downtown Public Library, State Attorney Office, Duval County Courthouse and UF Health Hospital Campus, among others.

During Bussells's tenure, Jacksonville's electric rates had remained artificially low throughout the 1990s and into the 2000s, despite large expenditures following the water/sewer acquisition in 1997, technology improvements, and construction of chilled water equipment. These projects were financed with borrowed money.

Jim Dickenson replaced Walt Bussells when Bussells retired on June 15, 2004 after nine years as CEO. [6] Soon after taking over, Dickenson implemented the first of three temporary fuel rate increases to offset rising fuel costs. In 2007, JEA had the second-lowest electric rates in Florida before they announced a four-year base rate increase package that would raise the average bill from $112 to more than $140 in 2010. [7] The additional revenue was designed to reduce debt.

The utility's debt in 2010 was $6.0 billion, against assets of $7.5 billion. Compared to other similar sized municipal utilities, JEA had 60% more debt per customer, which could lower the utility's bond rating and make it more expensive and difficult to borrow money. [8]

In early 2012, Dickenson announced that he would retire February 1, 2013. [9] On September 7, 2012 JEA Board of Directors named Paul McElroy to fill the role of JEA CEO and Managing Director effective October 1, 2012. [10]

In October 2012, Paul McElroy signed a 3-year contract to serve as JEA's CEO and this contract has been extended once; it ends in September 2018. [11]

Aaron Zahn served as CEO from April, 2018 until his termination on January 28, 2020.

COO Melissa Dykes was elevated to Managing Director & CEO on an interim basis until May 5, 2020, when Paul McElroy returned to lead JEA until a permanent replacement was selected. In June 2020, McElroy placed the majority of the leadership team that served under Zahn on paid administrative leave and appointed interim leaders.   

Jay Stowe was named Managing Director & CEO in November 2020. Stowe’s new seven-member leadership team was in place by September 2021. Following Stowe's resignation in April 2024, [12] JEA veteran Vickie Cavey was named Interim Managing Director & CEO, and she was elevated to the permanent role [13] in September 2024.


Attempted sale and aftermath

In early 2018, JEA's board of directors became interested in potentially selling the publicly owned JEA. [14]

In late December 2019, a state investigation of JEA's CEO and board of directors launched in response to complaints to the previously mentioned selling of JEA. The State Attorney's Office turned over its investigation to the U.S. Attorney and the FBI, resulting in a federal grand jury indicting former CEO Zahn and former CFO Ryan Wannemacher on charges of conspiracy and wire fraud in 2022. Following a trial, Zahn was found guilty of both charges in March 2024 and sentenced to four years in prison, while Wannemacher was found not guilty on both counts [15] .

Services

See also

Related Research Articles

<span class="mw-page-title-main">Jacksonville, Florida</span> City in Florida, United States

Jacksonville is the most populous city proper in the U.S. state of Florida, located on the Atlantic coast of northeastern Florida. It is the seat of Duval County, with which the City of Jacksonville consolidated in 1968. It was the largest city by area in the contiguous United States as of 2020, and became the 10th largest city by population in 2023.

<span class="mw-page-title-main">Orange Park, Florida</span> Town in the state of Florida, United States

Orange Park is a town in Clay County, Florida, United States. As a suburb of Jacksonville in neighboring Duval County, it is formally a part of the Jacksonville, Florida Metropolitan Statistical Area. The population was 9,089 at the 2020 census, up from 8,412 from the 2010 census. while the Town of Orange Park is only 5.32 sq mi large, Orange Park is the designated city on all adresses for all homes and businesses within the 32073 ZIP code, which includes Lakeside, Bellair-Meadowbrook Terrace and Oakleaf Plantation.

<span class="mw-page-title-main">San Francisco Public Utilities Commission</span> American local government agency

The San Francisco Public Utilities Commission (SFPUC) is a public agency of the City and County of San Francisco that provides water, wastewater, and electric power services to the city. The SFPUC also provides wholesale water service to an additional 1.9 million customers in three other San Francisco Bay Area counties.

<span class="mw-page-title-main">Florida Power & Light</span> American power utility company

Florida Power & Light Company (FPL), the principal subsidiary of NextEra Energy Inc., is the largest power utility in Florida. It is a Juno Beach, Florida-based power utility company serving roughly 5 million customers and 11 million people in Florida. It is a rate-regulated electric utility that generates, transmits, distributes and sells electric energy. In 2020, the company was ranked as the nation's most reliable electric power utility for the fifth time in six years.

Joseph H. Cury was the owner of the Mandarin Super Market and a resident of Mandarin, Florida. He was known as the founder of POWER, an advocacy group on utility rates, and as an opponent of the Dames Point Bridge and nuclear power plants.

Mandarin is a neighborhood located in the southernmost portion of Jacksonville, in Duval County, Florida, United States. It is located on the eastern banks of the St. Johns River, across from Orange Park. It is a short drive south of Jacksonville's city center, and is bordered by Beauclerc to the north, Julington Creek to the south and St. John's River to the west.

<span class="mw-page-title-main">Plant Scherer</span> Coal-fired power station in Georgia, US

The Robert W. Scherer Power Plant is a coal-fired power plant in Juliette, Georgia, just north of Macon, Georgia, in the United States. The plant has four generating units, each capable of producing 930 megawatts, and is the most powerful coal-fired plant in North America. The plant is named after the former chairman and chief executive officer of Georgia Power.

<span class="mw-page-title-main">Museum of Science and History</span> Museum in Jacksonville, Florida, U.S.

The Museum of Science & History (MOSH) is a museum in Jacksonville, Florida. It is a private, non-profit institution located on the Southbank Riverwalk, and the city's most visited museum. It specializes in science and local history exhibits. It features a large traveling exhibit that changes quarterly, three floors of permanent and signature exhibits, and the Bryan-Gooding Planetarium.

<span class="mw-page-title-main">JEA Northside Generating Station</span>

JEA Northside Generating Station in Jacksonville, Florida is a major power plant, one of the three power plants owned and operated by JEA, Jacksonville's municipal utilities service. It produces electricity by burning coal and petroleum coke at Units 1 and 2, formerly the largest circulating fluidized-bed combustors, (CFBs), in the world. These combustors, completed in 2002 and rated at 297.5 megawatts each, produce enough electricity to light more than 250,000 households. In addition, Unit ST3 produces 505 megawatts of electricity by burning residual fuel oil and/or natural gas.

<span class="mw-page-title-main">Florida Municipal Power Agency</span> American nonprofit utilities company

The Florida Municipal Power Agency (FMPA) is a nonprofit, wholesale electric utilities and associated services company that serves its 31 Florida municipal electric utility system members. Based in Tallahassee, with its operational offices in Orlando FMPA is a governmental entity, established as a separate legal entity pursuant to interlocal agreement. FMPA's statutory authorization is found in section 163.01, Florida Statutes, and part II, chapter 361, Florida Statutes.

<span class="mw-page-title-main">Chilled water</span> Cooling commodity

Chilled water is a commodity often used to cool a building's air and equipment, especially in situations where many individual rooms must be controlled separately, such as a hotel. The chilled water can be supplied by a vendor, such as a public utility, or created at the location of the building that will use it, which has been the norm.

<span class="mw-page-title-main">Government of Jacksonville</span>

The government of Jacksonville is organized under the city charter and provides for a "strong" mayor–council system. The most notable feature of the government in Jacksonville, Florida, is that it is consolidated with Duval County, which the jurisdictions agreed to in the 1968 Jacksonville Consolidation.

<span class="mw-page-title-main">Offshore Power Systems</span> Defunct American developer of floating nuclear power stations

Offshore Power Systems (OPS) was a 1970 joint venture between Westinghouse Electric Company, which constructed nuclear generating plants, and Newport News Shipbuilding and Drydock, which had recently merged with Tenneco, to create floating nuclear power plants at Jacksonville, Florida.

The Indiana Utility Regulatory Commission (IURC) is the public utilities commission of the state of Indiana, led by five commissioners appointed by the governor.

Privatization is the process of transferring ownership of a business, enterprise, agency, charity or public service from the public sector or common use to the private sector or to private non-profit organizations. In a broader sense, privatization refers to transfer of any government function to the private sector - including governmental functions like revenue collection and law enforcement.

<span class="mw-page-title-main">Jacksonville Arboretum & Botanical Gardens</span>

The Jacksonville Arboretum & Botanical Gardens (JABG) is a 501(c)(3) non-profit organization in Jacksonville, Florida, similar to Tree Hill Nature Center, and organized for the purpose of developing a unique natural attraction on a city-owned, 126.82-acre (51.32 ha) site. The arboretum officially opened on November 15, 2008, and the Sierra Club of Northeast Florida stated, "Development of this park is truly a community project of a size and scope never before undertaken by a volunteer organization."

Mastec, Inc. is an American multinational infrastructure engineering and construction company based in Coral Gables, Florida. The company provides engineering, building, installation, maintenance and upgrade of energy, utility and communications infrastructure. Its customers are primarily in the utility, communications and government industries.

<span class="mw-page-title-main">Great Lakes Water Authority</span>

The Great Lakes Water Authority (GLWA) is a regional water authority in the U.S. state of Michigan. It provides drinking water treatment, drinking water distribution, wastewater collection, and wastewater treatment services for the Southeast Michigan communities, including Wayne, Oakland, and Macomb counties, among others. GLWA overlays a majority of the water and sewer assets which were formerly operated and maintained by the Detroit Water Sewer District (DWSD) prior to the bankruptcy of the City of Detroit, Michigan.

<span class="mw-page-title-main">2023 Jacksonville mayoral election</span>

The 2023 Jacksonville mayoral election was held on March 21, 2023, with a runoff held on May 16. Incumbent Republican mayor Lenny Curry was term-limited and could not seek a third term in office. Seven candidates filed to run, including four Republicans, two Democrats, and an independent. Jacksonville mayoral elections use a blanket primary system where all candidates, regardless of party affiliation, appear on the same ballot.

Nate Monroe is an American journalist employed by The Florida Times-Union in Jacksonville, Florida, known for his investigative reporting on local government and public utilities.

References

  1. "The Jacksonville City Council approves a charter amendment to change the name of the Jacksonville Electric Authority to its acronym, JEA". September 23, 1998. Archived from the original on 2018-07-03. Retrieved 2018-07-02.
  2. "Vickie Cavey becomes first woman to serve as permanent JEA CEO | Jacksonville.com". 24 September 2024.
  3. "Article 21. -JEA" Municode website, Jacksonville City Charter
  4. "JEA: Cutting debt, stabilizing rates". jacksonville.com. Retrieved 2017-09-12.
  5. "Putting the customers first, always". www.energycentral.com. Energy Central. September 20, 2011. Retrieved September 11, 2017.
  6. Hunt, David: Hunt, David (April 29, 2010). "There's more behind a man than CEO: JEA's Jim Dickenson". Florida Times-Union. Retrieved September 11, 2017.
  7. Galnor, Matt (July 27, 2007). "What's the market value of JEA?". Florida Times Union. Retrieved September 11, 2017.
  8. "Fitch Rates JEA/St. Johns River Power Park". Business Wire. ADVFN. May 3, 2010. Retrieved September 11, 2017.
  9. Palka, Mary Kelli (January 17, 2012). "JEA chief executive Jim Dickenson says he will retire next year". Florida Times-Union. Retrieved September 11, 2017.
  10. JEA Board of Directors Names McElroy New CEO jea.com
  11. JEA negotiating extension of CEO Paul McElroy's contract Retrieved April 5, 2018
  12. JEA Board Names Vickie Cavey Interim Managing Director and CEO Retrieved December 2, 2024
  13. Vickie Cavey becomes first woman to serve as permanent JEA CEO Retrieved December 2, 2024
  14. Simmons, Ryan Benk, Joslyn (29 March 2018). "JEA's CEO Says He Has Nothing To Hide, Giving City Council 22,000 Pages Of Documents".{{cite web}}: CS1 maint: multiple names: authors list (link)
  15. Former JEA CEO Aaron Zahn guilty, ex-CFO Ryan Wannemacher not guilty in fraud trialRetrieved December 2, 2024