by Joe Wilhelm Jr.
Staff Writer
Faced with the choice of installing new transmission lines at a cost of about $100 million or building a new power plant to better serve its Southside customers in 2007, the JEA is happy with its choice.
The JEA board of directors was updated Tuesday about the Greenland Energy Center under construction south of Butler Boulevard, east of Interstate 95 and north of the St. Johns County line.
“Things didn’t work out as we expected,” said Jon Eckenbach, vice president of engineering and construction for JEA.
“They worked out better than we expected,” he said.
The projected cost of the Greenland Energy Center, equipped with two 175-megawatt natural gas-fired combustion turbines, was estimated about $248 million when bids were being prepared in 2008.
With the plant about 90 percent complete, the estimate is now under $180 million.
“When we started to discuss building the plant, it wasn’t a great time to be building a power plant,” said Eckenbach. “But by the time we hit the street in 2008, the real estate market tumbled, and it was a great time to build a power plant.”
JEA expects the plant to open for commercial operation by June.
The JEA explained the need for the plant because of the lack of power generation east of the St. Johns River. The Greenland Center would provide a reliable source of energy for a high-growth area in Jacksonville.
The natural gas turbines will help the JEA’s financial reports by using a cheaper fuel to supply electricity and, JEA reported, the natural gas turbines generate electricity with a low air emission output, which would lessen environmental impacts.
The plant is under construction within an existing industrial corridor and its design and land buffering has concealed its presence in the area, said JEA.
The board was also updated about labor negotiations with some of the unions that represent JEA employees.
The board approved three contracts to be sent to City Council for approval. Those are the American Federation of State, County and Municipal Employees (AFSCME), the International Brotherhood of Electrical Workers (IBEW) No. 2358 and Laborers’ International Union of North America (LIUNA) No. 630.
The AFSCME and LIUNA agreements included no general base pay increases in fiscal years 2009-10, 2010-11 and a 1.5 percent increase in 2011-12.
The IBEW agreement also froze base pay increases for 2009-10 and 2010-11, but included a 3 percent increase in 2011-12. Standby pay will also see an increase for IBEW, an increase of $3 a day over the current rate.
“For anyone negotiating contracts at this time, it’s tough,” said Jim Dickenson, managing director and CEO for JEA. “We appreciate the unions sitting down with us at the table.”
Board member Mike Hightower also commended the willingness to negotiate on both sides.
“These negotiations were conducted professionally with the best interests of both sides in mind,” said Hightower. “They have set the bar for negotiations going forward.”
One of the labor leaders was pleased with the process, but not with the end result.
“We received less than most other publicly owned utilities in our area,” said Rodney Wickham, president of IBEW No. 2358.
The JEA is completing labor agreements with three more unions: the Jacksonville Supervisors Association, IBEW No. 1618 and the Professional Employees Association.
356-2466