The chairman of JEA’s board of administrators Tuesday requested the utility’s CEO Paul McElroy to fee an expedited evaluate of JEA’s belongings, a transfer that he stated will assist decide whether or not it’s viable to promote Jacksonville’s metropolis-owned electrical and water utility to a personal firm.
Chairman Alan Howard informed McElroy he’d just like the report back to be accomplished in 60-ninety days, placing the town and JEA “able to debate the deserves of continuing with a privatization of JEA’s utility belongings.”
“If, after what I anticipate might be a wholesome debate, a choice is finally made to pursue privatization, that course of will probably be open to all bidders in order that we will obtain the most effective outcome potential for the residents of Jacksonville and JEA’s clients,” Howard wrote.
Howard’s request adopted a suggestion by Tom Petway — Mayor Lenny Curry’s largest monetary supporter and a JEA board member who’s stepping down — that the utility discover privatizing.
Such a transfer would have monumental penalties for Jacksonville’s ratepayers and can be an unlimited — and sophisticated — monetary transaction.
“It is very important observe that this query has been requested various occasions prior to now,” JEA stated in a written assertion. “Within the subsequent a number of weeks, JEA will develop a framework and a piece plan to information us in answering the questions raised by Mr. Petway and communicated and directed by JEA board Chairman Mr. Howard to Mr. McElroy.”
Curry, a Republican, has styled himself as a reform mayor. His workplace has been desperate to push the thought.
Petway made his suggestion on the finish of final week’s board of administrators assembly. The mayor’s workplace had a press release out by the top of the day supporting a transfer to review the difficulty.
Howard stated he’s conscious “this query has been requested earlier than and answered within the destructive.”
In 2007, the Metropolis Council Auditor’s workplace decided JEA was value about $2 billion to the town as a municipal utility and can be value $three.1 billion to a personal utility. However the greater valuation for a personal utility was based mostly on a brand new utility elevating charges by 39 % to the typical that residential and enterprise clients paid to Florida Energy & Mild Co.
Since then, JEA charges have risen considerably. The utility’s October survey of what different utilities cost confirmed a JEA residential buyer pays $111.seventy six for 1,000 kilowatt hours in comparison with $103.07 for a Florida Energy &…