JEA is considering raising rates again because of a budget shortfall. | Jacksonville Today file photo
Published on April 2, 2026 at 3:09 pm
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JEA customers could see water and electric rates go up again before the end of the year.
Jacksonville’s city-owned utility is scheduled to hold a public workshop April 14 to provide more details about how much rates could rise.
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Executives for JEA told the board of directors at a meeting Tuesday that water, sewer and electric rates will need to be adjusted to make up for projected revenue shortfalls if the rates were to hold steady.
”Most of our classes are under-recovering if we don’t adjust our projected revenues,” JEA Rates Director Victor Blackshear said.
Tuesday’s presentation did not show exactly how much rates could rise, but Blackshear said JEA’s water and wastewater system has a projected $45.7 million revenue gap to fill in the 2026-27 fiscal year at current rates. The gap is bigger on the electric side with a $61.5 million shortfall expected.
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Blackshear said JEA wants to increase revenue from its residential water and sewer services customers by 6%. On the electric side, JEA needs to bump revenue by 8% from residential customers.
JEA’s 230 commercial electric customers that have industrial use rates — a commercial charge for using an increased amount of electricity during peak hours — also could increase.
Blackshear said the utility is studying whether commercial customers who produce their own electricity on site but ask JEA to have extra power for them on standby, also could pay more.
JEA says it will need an projected net revenue of $1.051 billion to operate its electric system in Fiscal 2026-27. If rates stayed the same, the utility would bring in only $962.6 million.
The water and wastewater system would make $572.1 million at current rates, and JEA estimates it will need $617.8 million.
The rate discussion has its origins in two cost of service studies. JEA raised water and electric rates in April 2025, and again in October 2025.
Those numbers do not include revenue expected from water capacity fees — the charges paid by JEA’s commercial and industrial customers that have been the subject of recent scrutiny for the utility’s alleged policy of underchanging some of those users.
The rate increases will not affect fuel charges — a cost that JEA passes along to its customers based on price changes in the market.
Public rate hearing: A chance to speak
The public will have a chance to address the JEA board on the likely rate increases during its regular meeting on May 19. That’s when the board will vote on calling and setting a rate hearing.
The official rate hearing will be at the June 30 board meeting, where ratepayers and the public will have a final chance to address JEA leaders on the proposed rates. The hearing could be directly followed by a vote on the rates.
If approved, the rates would take effect Oct. 1.
JEA Board member Joseph DiSalvo — serving his final meeting as board chair — directly linked what the utility says are needed water infrastructure and power generation products to the likely rate hikes.
“The problem is, we sort of got the perfect storm,” he said. “We’re committed to a lot of capital projects that have to come. Otherwise, it could get worse. You’ve got that dynamic mixed with … we were short (of) some revenue.”
JEA is working on plans to build a $1.57 million natural gas-fired power plant to replace the aging Northside Generation Station. Costs jumped last year for JEA’s work to raise powerlines across the Fulton Cut in the St. Johns River to allow larger cargo ships into Jaxport. The city agreed to pay more money to JEA to help offset some of those costs.
JEA also is dealing with growth, advancing plans to expand existing water reclamation facilities and build new water treatment plants, according to the financial forecast presented Tusday.
DiSalvo declined to speculate to what degree customer’s water and electric rates could go up.
“It looks like that’s going to happen,” he said. “But hence that’s why we’re going through this process that will begin with the rates hearing in April.”
