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Are JEA Ratepayers Subsidizing Growth

John Hawley

Jul 4, 2026

Jacksonville's latest JEA rate increase has reignited debate over who should bear the cost of Northeast Florida's rapid growth, with many residents questioning whether existing ratepayers are being asked to fund new development while facing rising utility bills, executive compensation, and lingering concerns over management accountability. As Jacksonville continues to expand, many are calling for greater transparency, stronger long-term forecasting, and a broader discussion about whether more infrastructure costs should be borne by the developments creating the demand rather than primarily by existing customers.







The latest Jacksonville Electric Authority rate increase, announced on June 30, has sparked widespread public frustration—not just over higher bills, but over what many see as a pattern of rising costs, generous executive compensation, and too little accountability.

For decades, JEA's base electric, water, and sewer rates were relatively stable. Fuel costs fluctuated, but the underlying rates rarely changed. Now, customers have seen back-to-back base rate increases. So what changed?

The electric authority points to aging infrastructure, inflation, environmental regulations, and one factor it repeatedly emphasizes: growth.

The electric authority wrote, "As Northeast Florida continues to grow, JEA is investing in the systems that support our homes, businesses, and neighborhoods today and for generations to come." CEO Vickie Cavey has likewise said, "As our region continues to grow, we are making infrastructure investments to maintain the reliable electric and water services our customers depend on every day."

But many longtime residents are asking a simple question: Why are existing customers paying so much of the bill?

Mayor Donna Deegan has publicly supported JEA's leadership and independence to make whatever long-term investment strategy it chooses while appearing more pro-growth as a democrat than even the majority Republican controlled city council. Moving from a city of renderings to having more cranes in the air than any time in modern history would aptly define her relection campaign byline and define her relection donors list. At the same time, many City Council members have questioned the publically owned utility's management competency and the need for repeated rate increases.

Specific to growth, Florida was the country's fastest-growing state in 2022 and, from 2020 through 2024, recorded the highest overall population growth of any state. Yet, Florida can simultaneously experience record population growth and record departures of existing residents. From available data beginning in 2021 the number of Florida residents leaving the state has steadily increased. Many feel they're being priced out of the communities their families were a part of for generations citing housing costs, insurance, taxes, and rising utility bills.

Every new subdivision, apartment complex, industrial park, distribution center, and potential hyperscale AI data center requires more electric generation, substations, transmission lines, water treatment capacity, wastewater infrastructure, and long-term maintenance. Yet, why should that be the responsibility of the existing clients of a so-called publically owned utility?

Adding to public frustration, the electric authority has had high profile executive pay and bonuses in the news. Plus, they recently acknowledged that administrative failures led to large commercial customers not being charged utility capacity fees for years. That raises an obvious question: Whose head rolled for that or did they also continue to recieve bonuses? And more broadly are existing customers who will be paying more in October expected to cover those losses and subsidize future growth?

It's time for Jacksonville's elected leaders, the JEA Board, and the electric authority management to provide far more transparent, long-term forecasts of what growth will cost before projects are approved. If continued development requires billions in future infrastructure, shouldn't more of that burden fall on the developments creating the demand rather than primarily on existing ratepayers? While many of these developments recieve sweetheart deals from the city government with taxpayer funded incentives including out-right cash payments the majority don't believe those businesses should also be underwritten by residential electric, water, & sewer bills.

Growth should make Jacksonville stronger—not less affordable. That requires residents press for greater transparency, better forecasting, greater operational efficiency, and demanding that politicians ensure today's residents aren't simply handed the bill for tomorrow's growth.

We welcome your thoughts!


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Florida Condo assessments skyrocket
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