Jacksonville residents could soon see higher utility bills as JEA proposes a new round of rate increases affecting electricity, water, and sewer services.

According to JEA, the increase is due to the need to continue phasing in higher rates to cover upcoming costs so the utility system can keep up with growth and regulations.

Part of this growth includes JEA preparing to build a new natural gas plant on the Northside that would cost up to $1.57 billion at the former St. Johns River Power Park site. The new plant would allow JEA to retire the aging Northside Generating Station Unit 3 that uses natural gas.

In addition, JEA also faces costs for serving new development and supporting industrial growth in the Jacksonville area, according to a recent presentation to the utility’s board.

If approved, this would be JEA’s sixth electric base rate increase since 2021, continuing a trend tied in large part to long-term power agreements like its investment in Plant Vogtle, a nuclear energy facility that supplies part of the region’s electricity.

Here’s what to know about the proposal and when the increase would go into effect.

Why is JEA considering more rate increases for Jacksonville residents?

JEA officials say rising costs, infrastructure demands, and regional growth are driving the need for higher rates. During a March 31 board meeting, staff explained that the utility is facing what leadership described as a “perfect storm” of financial pressures.

Key reasons include:

Major capital projects to upgrade aging infrastructure

Compliance with environmental regulations

Increased demand from population and industrial growth

Long-term contractual energy costs

Without adjustments, officials warn the system could struggle to keep up with future needs.

How much is the proposed increase in electric bills?

JEA is proposing an 8% increase in revenue from residential electric customers, specifically targeting the base rate portion of bills, not the fuel charge.

What this means for your bill:

Typical monthly bill (1,000 kWh usage) in April: $170.37

Base rate portion: $91.62 (subject to increase)

Fuel costs: Not affected (these fluctuate monthly based on market prices)

How much is the proposed increase for water and sewer?

For water and sewer services, JEA is proposing a 6% increase for residential customers and an 8% overall revenue increase across all customer types.

Proposed increases will vary per type of customer

Multifamily (apartments): 11%

These increases follow the first water rate hike since 2012, approved last year.

What projects is JEA planning that will cause an increase in costs for Jacksonville residents?

JEA is planning significant investments to support future demand and replace aging systems. Essentially, infrastructure projects are driving the costs.

Here are some of the proposed changes:

A new natural gas plant (estimated up to $1.57 billion) at the former St. Johns River Power Park site

Retirement of older generating units

Expansion of water and sewer systems

Upgrades to meet environmental sustainability standards

These projects are considered essential to maintaining reliable service in a growing Jacksonville area.

When will JEA rates increase? See timeline

Customers won’t see immediate changes yet. The approval process includes several public steps:

April 14 – Board workshop on rates

May 19 – Possible vote to schedule a public hearing

June 30 – Final vote on rate changes

October 1 – Earliest date new rates would take effect

How does JEA determine rate changes?

JEA uses independent cost-of-service studies to determine how much each customer group should pay. These studies aim to ensure pricing is “fair and equitable” based on the actual cost of delivering services.

Consulting firms involved:

1898 & Co. (electric services)

Santec (water and sewer services)

How does the proposed increase rate impact Jacksonville residents and why is it necessary?

If approved, the proposed increases would raise utility costs for most households, continuing a trend of gradual rate hikes in recent years.

According to JEA, the changes are necessary to maintain reliability, support regional growth, meet environmental requirements and avoid larger increases in the future.

Doris Alvarez is a Breaking and Trending Reporter for The Florida Times-Union. You can get all of Jacksonville’s best content directly in your inbox each weekday by signing up for the free Daily Briefing and News Alerts newsletters at jacksonville.com/newsletters.

This article originally appeared on Florida Times-Union: JEA proposing rate increases for Jacksonville customers. Why and when?