Poll

Should Jacksonville sell (privatize) JEA?

Yes
4 (10.3%)
No
35 (89.7%)

Total Members Voted: 39

Voting closed: February 27, 2018, 12:55:01 PM

Author Topic: Should Jacksonville sell (privatize) JEA?  (Read 25323 times)

DrQue

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Re: Should Jacksonville sell (privatize) JEA?
« Reply #120 on: April 19, 2018, 09:42:17 AM »
How did this guy secure the interim position over Dykes? She has been CFO for 5-years and has extensive experience in the field. This a billion dollar company we're talking about; a company with billions of dollars in public debt where decisions and expertise from the top matter.

This seems like giving the Icemen's GM the keys to the Jaguars.


Snaketoz

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Steve

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Re: Should Jacksonville sell (privatize) JEA?
« Reply #122 on: April 26, 2018, 09:51:41 AM »
Well, this just took an interesting turn:

STATEMENT FROM MAYOR LENNY CURRY, CITY OF JACKSONVILLE

 

Since the consolidation of city and county government 50 years ago, we have had a countywide, electric utility. With the 1997 addition of public water and wastewater services, JEA is a community-based, taxpayer-owned electric and water service provider. Through its agreements with other private and public partners, we have been served by a locally-controlled production of electricity and clean water for decades.

 

These services are integral to our daily life; we need them to work, live and play. Also necessary is the need for our government and public entities to account for those things that belong to the taxpayer - from the assets of our municipal utility, to public buildings and spaces, and even the fleet vehicles our employees use. Next to public safety, I have no greater responsibility than to protect taxpayer investments and ensure budgets that are fiscally prudent.

 

So when the JEA Board and senior leaders of the organization undertook an effort to know the financial value of our municipal utility's assets, I was supportive. Our tax dollars and the hard work of public employees created that value, and city government has an obligation to preserve it. The discussion moved to privatization, and as city law speaks to this I felt an obligation to understand what impact the value had on future planning.

 

Since 1999, there has been a mandate written into our city ordinance code, Sec. 21.302, for anyone serving as mayor of Jacksonville, and the executive branch administration, to consider if essential government functions traditionally served by government could be better served through privatization. It is not simply a suggestion but a responsibility to consider this and for the mayor to make such policy decisions. As this law states, if and only if, the mayor submits a privatization plan would it then proceed to City Council.

 

As the elected leader of the executive branch, I take my responsibilities as mayor very seriously. I never proposed any privatization plan, nor did I ever suggest or say to anyone that I would propose such a plan. Instead, as I have consistently stated, I did not believe I had enough information to correctly contemplate such a proposal. That is why I wanted to gather information and talk to stakeholders about these issues. In this effort, I met with JEA leaders, municipal utility experts, financial experts, union representatives and workers from JEA.

 

Unfortunately, a clear and reasonable process to discuss these issues was hijacked by a few special interests and politicians with an agenda to put politics above all else. Fixated on the false choice of "sell" vs "don't sell" they created an environment fostering misinformation and mistrust. Despite this, the valuation undertaken by JEA leadership did yield evidence of important strengths we have in our community utility's balance sheet. It also revealed real weaknesses.

 

Technology and innovation are making renewable power more affordable, while efficiencies are reducing our water and electric needs. The result is data showing that JEA customers may increase in number, but revenues will decrease. We also learned that for a decade, a move toward nuclear power — although it was perhaps well-intended — has left Jacksonville saddled with at least $1.2 billion in obligations. Worse is that those dollars committed years ago, may never yield any real value to JEA customers and taxpayers whose backs this liability rests upon. When you combine falling revenue and billions in liability on the balance sheet, you have to take a hard look at the future.

 

The challenge of such a look forward requires leaders to strategically prepare solutions to the problems we've uncovered. We must also recognize that an organization unfairly spun into frenzy by politicians is leaving generations of JEA employees and customers feeling uncertain. This is why I am supportive of the recent efforts of the JEA Board and senior leadership to steady the organization and embark on internal reviews that strengthen the organization for the years ahead.

 

This strategic planning and long-term commitment to JEA employees and customers is also why I am choosing to state unequivocally that I will not submit any JEA privatization plan to the City Council.

 

I have consistently outlined that my priorities at JEA are protecting the investments made by taxpayers and customers, while also keeping the promises made to generations of JEA employees. Those priorities ensure consistent power and clean water for all of us, and I remain committed to these results.

 

– Mayor Lenny Curry

Adam White

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Re: Should Jacksonville sell (privatize) JEA?
« Reply #123 on: April 26, 2018, 10:06:40 AM »
Someone needs to discuss proper comma usage with this guy.
“If you're going to play it out of tune, then play it out of tune properly.”

DrQue

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Re: Should Jacksonville sell (privatize) JEA?
« Reply #124 on: April 26, 2018, 10:59:34 AM »

Technology and innovation are making renewable power more affordable, while efficiencies are reducing our water and electric needs. The result is data showing that JEA customers may increase in number, but revenues will decrease. (...) When you combine falling revenue and billions in liability on the balance sheet, you have to take a hard look at the future.


So we acknowledge that energy demand will inevitably decline or flatten at best, thus lowering utility revenues. That in itself makes a case for public utilities. Privately owned, for-profit utilities by definition will always look for ways to grow revenues along with minimizing costs. Consequently, ratepayers would eventually bear the burden of private sector return demands, while a publicly owned utility is not necessarily bound to the same incentives.

Regarding his liabilities comment, he could also acknowledge the substantial debt pay downs that occurred under the prior CEO's term, reducing the utility's risk profile.

Tacachale

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Re: Should Jacksonville sell (privatize) JEA?
« Reply #125 on: April 26, 2018, 11:24:44 AM »
Interesting...
Do you believe that when the blue jay or another bird sings and the body is trembling, that is a signal that people are coming or something important is about to happen?

Snaketoz

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Re: Should Jacksonville sell (privatize) JEA?
« Reply #126 on: May 27, 2018, 09:28:32 AM »
http://www.jacksonville.com/news/20180525/starke-officials-say-interim-jea-ceos-old-firm-didnt-deliver
This interim JEA CEO and the methods used to get him in this position need some explaining.  This is not getting enough attention.  Zahn is a charlatan with absolutely no experience in running a utility.  He has a shady past, especially in small towns, and now somehow he is getting a very important job running Jacksonville's biggest asset.  WTF?

bl8jaxnative

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Re: Should Jacksonville sell (privatize) JEA?
« Reply #127 on: November 04, 2018, 01:43:41 PM »


Moody's has already downgraded JAX bonds.   Ownership of JEA is a huge liability for the city.  They don't need to own the utility to accomplish 95% of things they want to do via ownership.  The city can get it done other ways without the expense and risks of ownership.


https://www.bondbuyer.com/news/jacksonville-jea-slapped-with-downgrades-over-lawsuit

sanmarcomatt

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Captain Zissou

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Re: Should Jacksonville sell (privatize) JEA?
« Reply #129 on: May 29, 2019, 11:49:47 AM »
I may be bad at reading, but I don't see where they stated why they would need to raise rates by 52%. 

They've had an 8% decrease in sales over the last 13 years and expect to see that continue, but that doesn't mean a 52% increase is needed.... Are they saying their infrastructure is dated and converting to solar energy is capital intensive? 


sandyshoes

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Re: Should Jacksonville sell (privatize) JEA?
« Reply #130 on: May 29, 2019, 12:01:38 PM »
YES.  It's time.  Attaching some reading for your edification.   https://www.clayelectric.com/

Tacachale

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Re: Should Jacksonville sell (privatize) JEA?
« Reply #131 on: May 29, 2019, 12:15:34 PM »
This is just the gearing up of the push to sell of JEA. A bad idea that just keeps coming back.
Do you believe that when the blue jay or another bird sings and the body is trembling, that is a signal that people are coming or something important is about to happen?

Charles Hunter

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Re: Should Jacksonville sell (privatize) JEA?
« Reply #132 on: May 29, 2019, 12:27:08 PM »
I may be bad at reading, but I don't see where they stated why they would need to raise rates by 52%. 

They've had an 8% decrease in sales over the last 13 years and expect to see that continue, but that doesn't mean a 52% increase is needed.... Are they saying their infrastructure is dated and converting to solar energy is capital intensive? 



What I got, was that there are certain fixed costs to providing electric and water service - maintenance of the lines and the generating and distribution equipment.  Also, there are the long term debt payments, including the Vogtle boondoggle.  All of these costs are fixed and must be met to allow JEA to continue to provide service, regardless of how much electricity or water they sell.  They are already selling less of each, despite having more customers.  On the electric side, they see the advent of cheap home solar as another threat to their sales.  Less revenue coming in to meet those fixed costs, plus the variable costs of providing utility service.  It would be interesting to see what the proportions of fixed to variable costs are for electric and water service.

Captain Zissou

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Re: Should Jacksonville sell (privatize) JEA?
« Reply #133 on: May 29, 2019, 01:07:58 PM »
That's generally what I got.  So falling behind on both maintenance and innovation, in addition to poor decision making, has left them in very poor financial shape so their need us to bail them out by jacking up our rates. 

Tacachale

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Re: Should Jacksonville sell (privatize) JEA?
« Reply #134 on: May 29, 2019, 01:20:56 PM »
That's generally what I got.  So falling behind on both maintenance and innovation, in addition to poor decision making, has left them in very poor financial shape so their need us to bail them out by jacking up our rates.

Or by selling off the JEA, which is what they're implying.
Do you believe that when the blue jay or another bird sings and the body is trembling, that is a signal that people are coming or something important is about to happen?