by Joe Wilhelm Jr.
Staff Writer
Achieving goals during the 2010 fiscal year has the JEA looking forward to meetings with credit rating agencies in December.
“This was the best operations year we have ever had at JEA,” said JEA Chief Operating Officer James Chansler, presenting the monthly operations report to the board of directors.
“We continued that with a good first month of the new fiscal year,” he said.
Chansler reported on several goals that JEA set in fiscal year 2010, which just ended, and for 2011, which started Oct. 1.
Regarding sewer events, JEA reported 26 sanitary sewer overflows in 2010 and set a goal of not more than 32, with two occurring so far in the 2011 fiscal year.
“That’s two too many, but it’s only two,” said Chansler. “Nitrogen to the river in October has been the least since we started recording it.”
The JEA goal for tons of nitrogen it contributed to the St. Johns River was less than 720 tons and at the end of 2010 JEA’s nitrogen level stood at 669 tons.
Chansler said that meets “the 2013 goal set by regulatory agencies.
Taking a look at the 2009 JCCI Quality of Life Progress Report, Chansler said customers are paying less for electricity and sewer and water than they were in 1983. The study measured the residential cost of 1,000 kilowatt hours of electricity, including the residential basic rate and fuel adjustment charge, and of residential water and sewer services based on 900 cubic feet of water consumption, adjusted for inflation.
Electric reliability was another area in which JEA outdistanced its peers. Comparing itself to other utilities, JEA listed its average duration of outages at about 73 minutes. That benchmark was the lowest where Gulf Power was listed at 140 minutes per outage.
JEA also experienced production numbers that were higher than expected.
Meeting goals helps Paul McElroy, JEA chief financial officer. when he and other members meet with ratings agencies at the end of each year to discuss the JEA’s rating.
He presented JEA’s five-year financial projections to the board Tuesday.
“This plan, for the first time I’ve been here, has no incremental revenue requirements. No other planned rate increases over the five year period,” said McElroy.
“We may have some fuel adjustments, but in terms of base rates, no increases. That’s the first time we’ve been in that situation. We’ve always had to add 3, 4, 5 percent to balance the budget at the out years of the plan, so that’s a significant accomplishment.”
The board recognized the work of the finance team and was optimistic about the meeting with the ratings agencies, Fitch’s, Standard & Poors and Moody’s.
“I’ve been on the board for a few years, but things seem to be humming now in a way they haven’t been before,” said Jay Fant. “We’re not fat here at JEA, but the numbers are looking good.”
In other JEA news, the board accepted the resignation of Teala Milton Johnson, JEA chief public affairs officer, effective Jan. 28. Bud Para, director of legislative affairs, was chosen as her replacement.
In an e-mail interview, Johnson said “JEA has given me many opportunities to serve our community, which includes working in both Tallahassee and Washington to advocate for our customers and working with City Council.
“Life after JEA will include some of my favorite organizations including the Girl Scouts, Florida House in D.C., and Leadership Florida. Also, being a newlywed we, Ted and I, will begin the next chapters of our lives in Highlands, N.C.”
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