The low price of natural gas will mean a $37 million fuel credit for JEA customers.
The one-time credit comes from JEA's savings on fuel costs because of the lower-than-expected price of natural gas.
The utility's board of directors Tuesday approved the credit, which will be applied to active accounts corresponding to the customer's April 2013 meter reading.
The board approved the credit that, for example, will mean a residential customer using 860 kilowatt-hours will receive a $35.35 fuel credit. The credit will vary depending on the customers' use.
The credit will appear on most customers' April bill starting April 2. It will appear on some May bills for those whose meter is read in late April.
"In the past 12-24 months the fuel markets, specifically natural gas fuel had been well below our planned expenditure level, so we have built up a fuel reserve," said Paul McElroy, JEA managing director and CEO.
According to policy we have targeted 15 percent and that reserve as of the end of March exceeds that 15 percent and will probably reach 22 percent," he said.
McElroy recommended to the board that JEA return the surplus to its customers.
"We have had the flexibility to burn a significant amount of natural gas and displace higher-cost coal over the last number of months," said McElroy.
Large industrial customers could see an average credit of $2,000, said McElroy.
The utility's larger customers also will see a substantial return.
"The City of Jacksonville will look to get a fuel credit of approximately $300,000 in the month of April, and the school board as much as $500,000 credit in the month of April," he said.
Where the City's portion of the $300,000 has yet been determined, according to Mayor Alvin Brown spokesman David DeCamp.
"The savings represent a significant amount of money and we will work with Council members to carefully consider how to take advantage of the savings to provide the best results for taxpayers," DeCamp said.
Last July, the variable fuel rate charge was lowered $5.18 for residential customers who use an average of 1,250 kilowatt hours.
In 2012, JEA produced four times more electric generation from natural gas than in 2007. The variable fuel rate is annually set during the budget process.
"JEA has been able to save on fuel costs associated with the use of natural gas to produce electricity. JEA is passing this savings on to our customers," said Ashton Hudson, JEA immediate past chair.
Hudson stepped down as board chair after the board approved a new slate of officers.
Mike Hightower was elected chair, Cynthia Austin vice chair and Helen Albee secretary.
Hudson's term has expired but he is serving as the board awaits the appointment of his replacement, Wyman Winbush. Brown appointed Winbush in January.
The Council Rules Committee in late February deferred Winbush's appointment 60 days to allow Hudson to continue working on an economic development project. Hudson has declined to provide information about the project.
The JEA nominating commission at a Feb. 19 meeting voted to wait until the new member was appointed to the board, but the board decided to move forward Tuesday with electing officers.
The board's usual operating procedure is for officers to start as secretary, progress to vice chair and then to board chair.
That led to former Vice Chair Mike Hightower being discussed as chair and former Secretary Cynthia Austin as vice chair. Austin nominated Helen Albee as secretary.
"My only concern is that (Austin) won't be able to serve as chair because your term is up next year," said Hudson, during the pre-board meeting.
Austin replied that there were "some things" she wanted to do as vice chair.
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