JEA Customers to Benefit from Gas Price Decrease

Press Release: November 24th, 2004

Jackson Energy Authority Board of Directors Tuesday (November 23) voted to lower JEA’s natural gas rates 6.7 percent for residential customers.

The decrease will help offset increasing natural gas prices this winter, says Charlie Crockarell, JEA senior vice president of the Gas Division. The decrease is effective for meters read after January 1 and will apply to gas that customers use in December.

JEA adjusts its gas prices quarterly – December 1, March 1, June 1 and September 1 – and bases its adjustments on projected market gas costs.

“This is the first time in JEA history that the Board approved an out-of-time adjustment,” Crockarell says. “This unprecedented move by the Board shows its focus on doing what is best for the JEA customer.”

Higher energy prices are forcing up the price of natural gas this winter across the country. “The energy market, mainly crude oil, has been at all-time record levels for the last few months and natural gas costs are reflecting these increased prices,” Crockarell says.

Even with the decrease, JEA customers will see an 18.6 percent total increase in gas costs over last winter, Crockarell says. JEA’s average, residential natural gas customer pays about $670 a year. The increase will add about $10.40 a month to the total cost.

Crockarell urges customers to practice wise energy use this winter and to consider JEA’s budget billing plan, which evenly spreads out a customer’s utility costs over a year.

JEA is not benefiting from the price increases, Crockarell pointed out. “We are just passing through our increased wholesale cost for natural gas. At the same time, when JEA saw gas prices go down slightly, the JEA Board took immediate action to pass that savings along to customers, too.”