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At JEA, we strive to be transparent on how we price the utility services you depend on. In recent months, the fuel cost portion of your electric bill has been a topic of discussion by many customers. We hope this information will give you a clearer picture of what goes into JEA’s fuel charge and what we do to keep these costs as low as possible.
The fuel rate is JEA’s cost to buy the fuel needed to generate electricity. A significant portion of our electric generation mix comes from natural gas, coal, petroleum coke, and other sources such as from purchase power agreements. JEA purchases these generation fuels well in advance, with pricing governed by global markets. This cost is added to your electric bill each month as a pass-through fuel charge. This reflects JEA’s own cost to obtain these fuels, which includes purchasing, transporting and storing them.
The cost of natural gas, the largest component of our electric generation mix, is the highest it has been in almost 15 years. Geopolitical conflicts like the war in Ukraine have removed Russian suppliers from many markets and caused a spike in natural gas prices worldwide. Because JEA and other utilities throughout Florida and the United States use natural gas to generate electricity, prices are being impacted nationwide.
Based on 1,000 kWh consumption
Natural gas prices are projected to remain higher than normal through spring 2023. While fuel charges are “pass-through” costs, JEA limits the month-over-month increases in this charge to no more than 20 percent. When our fuel cost goes down, we pass those savings along to customers on a monthly basis.
JEA offers several tools, resources and initiatives to help you save. JEA also has bill pay solutions and utility payment assistance for families and individuals struggling financially. We can also connect you with community resources that may be able to help.
Whether you get your bill in the mail or at jea.com, the fuel cost is a line item under the Electric Service portion of your bill. In most cases, this is on Page 3 of your paper bill. Learn more about your bill.
JEA fuel cost rates are published under the Monthly Fuel Rates Table on this page. Rates are typically published no later than the third week of the prior month.
We proactively hedge our natural gas power purchases months in advance to minimize major fluctuations in pricing. The fluctuations in natural gas costs are like what you may see at the gas pump, but these costs are affected by different market conditions such as pipeline and terminal disruptions, natural gas storage inventories, demand for use in electric generation due to the weather, and much more. These conditions are currently keeping natural gas prices high.
Beginning in December 2021, JEA moved to a monthly fuel charge adjustment; previously it did this once per year. This has resulted in customer bills rising or falling with fuel prices. The monthly changes help us keep up with real-time energy costs and provide more flexibility to pass along costs or savings as fuel prices continue to fluctuate.
We expect to see fuel prices fluctuate throughout 2022 and into early 2023. Please visit this page for the latest rate changes.
We plan our purchases of natural gas months ahead of when we need it. This strategy reduces exposure to volatile and potentially rising fuel costs. JEA also buys other fuels and purchases power months in advance to minimize large swings in pricing that global events may cause. Also, JEA limits the month-over-month increase in the fuel charge to no more than 20 percent.
No. Fuel charges are a pass-through cost and only cover fuel and fuel-related expenses. When JEA’s cost to buy fuel goes down, we pass those savings back to you on each monthly bill.
We continue to manage our business the best way we can so we can offer affordable rates. We also:
JEA has published a Fuel Rate Explainer flyer that you can download and print for educational purposes.
10/26/2022: Florida Times-Union — JEA customers to finally see reprieve in November, though future rate hikes still unknown
9/21/2022: Florida Times-Union — JEA rate hikes continue, but Jacksonville residents may see bills level off starting next month
9/21/2022: Jax Daily Record — JEA says it expects fuel charges to remain high until next spring
9/6/2022: WJCT Media — Electric bills likely to rise again in 2023
8/18/2022: Florida Times-Union — Sticker Shock: JEA Customers' Electric Bills Keep Rising at a Rapid Clip. Here's Why.
