JEA invites offers for utility by Sept. 30
From A to Z: Zahn’s tenure is a wrap. Image via A.G. Gancarski.

image001
"JEA has no specific preferred outcome."

Just a day after Jacksonville Mayor Lenny Curry told Florida Politics that privatizing JEA could make Jacksonville debt-free, the local utility released an invitation to negotiate.

The goal of the 87-page document: “to evaluate proposals on strategic alternatives … aligned with JEA’s goal of maximizing customer, community, environmental, and financial value over the long term.”

“JEA will consider proposals that build upon JEA’s strengths and seek to eliminate certain existing business constraints,” the document holds.

That consideration will be soon. Deadlines for proposals loom at the end of September, with negotiations in October.

With external utility players expressing interest in JEA in the past, the document likely will be of interest to investors far outside of Duval County, even as the utility contends “JEA has no specific preferred outcome and is open to receiving a range of Replies in response to this ITN.”

This is “a unique opportunity of scale” with “untapped opportunities,” per the invitation.

“JEA is currently restricted to existing service territory due to governmental constraints as a public entity … laws restricting governmental entities prevent it from operating certain new businesses and building out the full potential for customer service.”

The options are endless: Expansion, consolidation, and potentially, “a range of services related to mobility, housing, telecommunications, work, health, and leisure by creating new ventures and partnering with existing service providers.”

It’s not all benefits: There are $2.6 billion in capital needs for the wastewater systems that need to be addressed in the next five years.

“By eliminating some or all of JEA’s constraints, JEA could have a clearer path to maximizing value today and in the long-term,” goes the claim.

Curry noted conditions for a sale, such as $3 billion in value. The JEA plan would give employees 100 percent bonuses, there would be $350 kickbacks to all accounts, and rates would be fixed for three years.

That $3 billion, asserts this document, would equal 26 years of the eliminated JEA Contribution to the local budget, currently just shy of $120 million.

As was the case with pension re-amortization, those benefitting from the status quo will see strong incentives for proposed changes.

A.G. Gancarski

A.G. Gancarski has written for FloridaPolitics.com since 2014. He is based in Northeast Florida. He can be reached at [email protected] or on Twitter: @AGGancarski


3 comments

  • Frankie M.

    August 2, 2019 at 7:23 pm

    “JEA should stay the way it is,” Khan said. “I have seen this all over the country when you have something that is really a public entity like that getting privatized [it] doesn’t work well for the residents.

  • Frankie M.

    August 2, 2019 at 8:37 pm

    Does Lenny believe half the things he puts out there? Or does he say it so much that he’s started believing his own lies? Like so many of those self help gurus he likes to quote in his tweets.

    You have to wonder if CEO Lenny is smarter than Mayor Khan? Would Shad pay a guy with zero experience half a million dollars just to put his company up for a firesale? Sounds like a good way to go bankrupt. Looks like the city of Jax will be there soon.

  • Sonja Fitch

    August 14, 2019 at 5:10 am

    Just more bs looting Lenny! Shut up and take care of the
    City. JEA is one of the best. Lenny must be modeling “trump” seek and destroy. Looting Lenny you are just the mayor. Stay in your lane

Comments are closed.


#FlaPol

Florida Politics is a statewide, new media platform covering campaigns, elections, government, policy, and lobbying in Florida. This platform and all of its content are owned by Extensive Enterprises Media.

Publisher: Peter Schorsch @PeterSchorschFL

Contributors & reporters: Phil Ammann, Jason Delgado, Renzo Downey, Daniel Figueroa, A.G. Gancarski, Anne Geggis, Kelly Hayes, Joe Henderson, Ryan Nicol, Jacob Ogles, Scott Powers, Gray Rohrer, Jesse Scheckner, Christine Sexton, Andrew Wilson, Mike Wright, and Tristan Wood.

Email: [email protected]
Twitter: @PeterSchorschFL
Phone: (727) 642-3162
Address: 204 37th Avenue North #182
St. Petersburg, Florida 33704




Sign up for Sunburn


Categories