JEA customers will see a bump in the base rate for electricity in April because of Plant Vogtle nuclear costs

JEA residential and business customers will pay more in April for the base rate part of their electric bills, marking the third time since 2021 the utility has bumped up the base rate so JEA can cover the cost of buying electricity from the Plant Vogtle nuclear plant and other expenses.

JEA has been planning the increase for several months and expects it will continue increasing rates in future years, though how to do that for different groups of customers will be determined later.

Despite the latest base rate increase, customers might not notice it much next month because the separate fuel charge portion of the bill will be at its lowest amount since November 2021. JEA sets the fuel charge based on what it costs to purchase natural gas, coal and other products that it burns for electric generation.

Here's what changes customers can expect to see on their electric bills.

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How will the rate change for JEA residential customers?

The base rate covers the utility's debt payments, equipment purchases, salaries, payments to the city of Jacksonville, compliance with environmental regulations, and other day-to-day expenses. It is the biggest portion of the electric bill.

The typical residential customers using 1,000 kilowatt hours of electricity per month will pay a base rate of $83.96 starting in April, up from $76 in mid-2021.

That $76 base rate went to $77.83 in October 2021 and then to $80.46 in April 2023. It will next go to $83.96 in April.

Does the base rate increase mean electricity from JEA costs more?

Yes and no. The base rate part has been steadily rising, but the other big component of the bill is the fuel portion. JEA assesses the fuel cost based on the utility's actual cost for buying it.

The fuel part of the typical residential bill using 1,000 kilowatt hours was $32.50 back in mid-2021 but it shot up as high as $83.46 in September 2022 when global natural gas prices skyrocketed. That cost of buying natural gas and other fuels has dropped. JEA also has been working on strategies to lock in fuel prices.

JEA says that for this April, the fuel part of the typical residential bill will be $31.24. The downward trend in fuel costs since its peak in 2022 means that even with the rise in base rates, customers still are paying less than they were when fuel costs were hitting JEA the hardest.

But compared to mid-2021, which was before fuel costs took a wild ride, the total JEA bill for the base rate plus fuel charge will be higher in April than it was three years ago.

How will JEA's commercial customers' rates change?

About 50,000 small commercial customers and roughly 130 industrial customers could see increases of about 3% on the variable energy charges they pay based on how many kilowatt hours of electricity they use. That increase doesn't affect the fuel charge portion of bills so like residential customers, business account will see their total bills fluctuate depending on what JEA's cost is for fuel in generating stations.

Will Plant Vogtle will drive future rate increases?

Yes. The higher rates come as JEA will be shouldering more cost for electricity purchased from the Plant Vogtle nuclear plant in Georgia.

JEA entered into a binding contract in 2008 to buy electricity from Plant Vogtle. The construction of two new reactors at Vogtle has been plagued by cost overruns and delays. JEA does not have an ownership stake in Vogtle but the contract requires JEA to purchase electricity from Vogtle at costs that are many times higher than what electricity from other types of electric generation cost.

"There will be future rate increases and we'll do everything we can to manage that as well as possible," JEA CEO Jay Stowe said.

Unit 3 of Plant Vogtle started sending electricity to JEA in July 2023 and Unit 4 is slated to come online sometime between April and the end of June. Plant Vogtle will provide 11% of JEA's electric needs when both reactors are online and the electricity will be carbon-free.

How will taxes and fees affect the bottom line of the bill?

After adding on taxes and fees imposed by the city and state, the typical residential bill for 1,000 kilowatt hours will be $131.26, which is less than the all-in total of $138.21 in April 2023. JEA notes it also will be less than the $132.55 cost in December.

Going back to mid-2021, the bill was $123.34 after taxes and fees.

This article originally appeared on Florida Times-Union: JEA raising rates for Jacksonville electric customers. Here's why.