Published on March 25, 2025 at 1:05 pm
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JEA’s electric, water and wastewater customers will see higher bills after April 1.
The board of directors for Jacksonville’s city-owned utility voted unanimously Tuesday to increase electric and water rates, which JEA officials say will, on average, result in a 3.7% increase in residential customers’ overall utility bills.
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The vote also raises rates for fiscal year 2026. JEA customers will see 5.1% jump in their total bill beginning Oct. 1 for households that use the average 1,000 kilowatt hours of energy and 6,000 gallons of water per month, according to JEA Public Information Officer Karen McAllister.
JEA officials say the rate hikes are necessary to meet growing demand and sustainability goals and upgrade plants and facilities to meet tighter regulations.
“Over the past decade, the utility industry has significantly changed due to stricter regulatory requirements, increasing operating costs and growing energy and water demands,” McAllister told Jacksonville Today in an email. “The rate adjustments will better align our revenue requirements with what it costs to serve our customers.”
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Documents in meeting packet Tuesday show that JEA is trying to make up a projected $35.7 million revenue shortfall in its electric system for the current fiscal year, 2025. At the existing rates, the utility estimates a $39.7 million gap in fiscal year 2026.
Today’s decision includes a 6% base electric rate adjustment for the remainder of this fiscal year and a 4.5% increase for FY26.
On the water and wastewater side, JEA estimates a $15.2 million revenue shortfall this year and a $22.8 million gap to fill in fiscal year 2026.
The corresponding rate increases approved today are 6% this year and 4.2% in fiscal year 2026.
Since 2022, JEA has attributed other rate and fee increases to difficult-to-predict fuel costs, particularly natural gas. The utility’s ballooning costs associated with its power purchase agreement with the Nuclear Plant Votgle in Georgia were also blamed in previous rate increases.
The board held a public rate hearing in February before its vote today, and the utility first announced in October that it was considering the increases.
Despite the hike, JEA officials say the utility’s combined utility prices are still lower than many other major Florida cities like Gainesville, Tallahassee, Orlando, Tampa and Miami.
“The rate adjustments include a new tiered structure for electric rates that offer an opportunity to keep electricity bills more affordable for customers who consume less electricity,” McAllister said in a news release Tuesday.
