Electric discount bill not legal


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  • | 12:00 p.m. May 18, 2007
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by Mike Sharkey

Staff Writer

All 19 City Council members are sponsoring a bill that would provide a discount for senior citizens and the disabled once the JEA rate hikes go into effect in October. However, according to JEA, a state law prevents the utility provider from giving discounts to any citizens.

“A Florida statute prohibits a special rate,” said JEA’s Nancy Kilgo, explaining the state law prevents JEA – or any other utility — from creating separate rates or offering discounts within the same class of customers.

The state law prohibits JEA from giving discounts on utility bills to anyone regardless of their geographical location, income level, physical ability to work, race, gender, etc.

Kilgo informed several Council members about the law during a recent meeting of the Council’s Transportation, Energy, Utilities & Safety committee. During the meeting, Kilgo presented the committee with a 22-page report that outlines the necessity of the rate hike, explains why JEA isn’t able to offer anyone a discount and offers several pages of things customers can do to hold down their utility bills and ways that JEA already offers several forms of assistance.

According to the statute, “no public utility shall make or give any undue or unreasonable preference or advantage to any person or locality, or subject the same to any undue or unreasonable prejudice or disadvantage in any respect.”

The JEA charter has similar language that includes the City and other public bodies: “The city and other public bodies shall be required to pay for any utility services provided by JEA upon the same basis as other users.”

Under JEA’s rules and regulations, the utility long ago established a policy where “every user of the JEA’s electric system shall be subjected to equal and uniform rates and charges fixed by JEA, for class of user within which the user falls, without reduction or other discrimination.”

Based on 2005 data obtained from the U.S. Census Bureau, the report indicates approximately 12 percent of the Jacksonville population was at or below the poverty level. About 11 percent of the population is 65 years or older and, of that demographic, 12 percent are at or below the poverty level.

The resolution that was amended March 27 sought help for those citizens and also cited other areas where the cost of living is rising including housing, gas and “other essentials.” According to the resolution, the base rate for JEA-provided electricity was $68.15 per 1,000 kilowatt hours in 2004. Those rates have since risen to $88.33 per 1,000 kilowatt hours and the 6 percent proposed increase would take the rate to $104.11 per 1,000 kilowatt hours.

JEA does offer bill-paying assistance through a variety or methods and programs, none of which include actual discounts on utility bills. Through the Low Income Home Energy Assistance Program, the Northeast Florida Community Action Agency is able to tap into federal funding for qualified JEA customers. Currently, there is $1.6 million in the fund and customers can qualify for either general energy assistance that provides anywhere from $100 to $200 worth of assistance based on the amount of the bills, need and family size or emergency assistance — a program where up to twice a year a customer may receive up to $400 in assistance but they must have lost, or be in danger of losing, their utility service.

Other forms of assistance include: Emergency Home Energy Assistance Program, City Utility Assistance, Neighbor to Neighbor, Weatherization assistance and housing rehabilitation.

“We will do more conservation messaging and more education,” said Kilgo.

Private entities also offer bill-paying assistance including Catholic Charities, the Jewish Family and Community Services and Urban Jacksonville (Cathedral Foundation). These agencies receive their funding from individual and foundation donations.

There are several things JEA can do legally to help its current and future customers hold down their utility bills:

• JEA may set up a low income customer emergency trust fund for voluntary customer contributions made to assist the elderly, the disabled and other low income customers. JEA may not currently match these donations based on its charter restrictions.

• JEA may offer conservation and consumption education to all its customers through a variety of channels and media and may direct part of these efforts and tailor education to its needy customers.

• JEA may offer conservation and weatherization measures and methods that meet industry tests expected to have a net zero cost/benefit relationship. That means JEA can spend money for customer premise improvements that will yield an offsetting savings opportunity elsewhere in the utility by reducing overall demand, lowering overall costs, reducing the need to build new supplies and other measures.

Current JEA customers can request an in-home audit to help determine energy costs and possible savings or they can conduct the audit themselves by logging on to jea.com.

 

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