JEA names private investor, a utility newcomer, interim CEO

Source: David Bauerlein and Nate Monroe, Florida Times-Union, April 17, 2018 

The JEA board of directors named a 38-year-old private investor with little experience managing a large utility the agency’s interim chief executive officer Tuesday, rejecting a bid by the finance chief to remain in the top spot, and marking a major departure from the kind of leaders JEA courted in the past. Aaron Zahn immediately assumed the interim CEO role and refused to take questions after the board meeting. The move to hire Zahn was contingent upon making a push to retain Melissa Dykes, the agency’s chief financial officer, as a high-level executive to run the day-to-day operations of the agency. Dykes, whose own bid to remain the interim CEO only garnered two votes from the five-member board, said she was open to staying but it’s not clear whether she will. …

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Opinion: JEA union leaders explain opposition to sale
Source: Kathleen Crowe, Valerie Guiterrez, Rick Lehman, Ronnie Burris, Randy Hilton, April 15, 2018

Question: Would a private utility better serve the city of Jacksonville and the JEA ratepayers of Northeast Florida better than JEA? Answer: It is the official position of the JEA union leadership that a privatization of JEA would have severe, harmful and long-term detrimental economic impacts on all stakeholders. … While we have attempted to counter much of the noise regarding the privatization of JEA, there is a very simple reason for not selling JEA that overcomes all the noise. Any company or entity willing to buy JEA, whether it is $1 billion or $20 billion, must have the resources to ensure the price it pays will definitely be paid back in full with interest. This is not like selling your house for a premium and walking away with no further commitment to that house. The customers of JEA will still be on the hook for the premium paid in the initial purchase price, as well as the interest or earnings above and beyond that premium paid to the city. …

Jacksonville utility unions pan potential JEA sale as ‘harmful’
Source: A.G. Gancarski, Florida Politics, April 6, 2018
 
Even as well-connected lobbyists for major utility companies hover over Jacksonville’s JEA ahead of a potential sale, five utility unions combined in opposition to any moves Friday. Per a statement from the five unions: “It is the official position of the JEA Union Leadership that a privatization of JEA would have severe, harmful, and long term detrimental economic impacts on all stakeholders.” … Signatories include American Federation of State, County & Municipal Employees, International Brotherhood of Electrical Workers. Jacksonville Supervisor Association, Labors International Union of North America, and the Professional Employees Association. …


Curry plans to meet with union about JEA sale
Source: David Bauerlein and Nate Monroe, Florida Times-Union, February 27, 2018

Mayor Lenny Curry plans to meet with the union that represents JEA linemen, a vocal group that has led the charge against privatizing JEA. Members of the International Brotherhood of Electrical Workers, dressed in red shirts and carrying “JEA is Not for Sale” signs, have packed City Hall chambers whenever the idea has come up for public discussion. Curry’s meetings with the IBEW and other groups will unfold while a special City Council committee meets to examine the ramifications of selling JEA. … The IBEW is one of five unions representing JEA workers. Curry’s office responded to a question about other unions by referring to a statement that he would be reaching out to “all stakeholders” about JEA’s future. The American Federation of State, County and Municipal Employees generally opposes privatization, but the union hasn’t take a position yet with respect to JEA, said Mark Jordan, regional coordinator for AFSCME. …

JEA Privatization Uniquely More Complicated Than Other Efforts Around The State
Source: Ryan Benk, WJCT, December 6, 2017

Following a regular board meeting that saw departing member Tom Petway charge his soon-to-be former colleagues with exploring privatization, JEA’s board chair is calling for a swift examination of the utility’s assets. … Should the board and Jacksonville’s political leaders decide privatization is the right path, JEA would not be the first municipal utility to do so in Florida. In fact, there are even examples of voters deciding to go the opposite direction: From private to public. Still, according to one expert, the massive tentacles of JEA’s electric grid, water service and sewer system — which serve more than 450,000 electric, 337,000 water and 261,000 sewer customers in Northeast Florida — would represent one of the largest and most complicated such conversions in Florida’s history. … After a lengthy 2012 exploration of JEA’s assets and the logistics of the city splitting with the utility, the decision was ultimately made to shelve the privatization idea. The last time an audit of JEA’s value was conducted in 2007, it was pinpointed at $2 billion as a municipal utility and more than $3 billion if it went private.

… Most recently, Winter Park successfully booted Progress Energy (now Duke Energy) and municipalized. Meanwhile voters in South Daytona Beach rejected a similar effort to turn their utility public. Kurry said data on customer satisfaction is mixed. Winter Park voters are generally happier with their choice and so are those in South Daytona Beach. … Just as murky as ratepayer views on service quality, customer perception of pricing fairness is mixed across the sector. …