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JEA Board of Directors approve resolution to lower electric rates for 12 months

The Board of Directors of Jackson Energy Authority approved four resolutions during their monthly meeting at the Tennergy Building, Thursday.

“Today we approved four business items,” said Monte Jones, JEA chairman of the board, “A contract to inspect and maintain wooden electrical poles on the JEA system, 46KV electric switch replacement at the south Jackson substation, re-work of the Bells Highway lift station that will improve sewer service in that area and approval to pass along savings to electric customers from TVAs Pandemic Relief Credit program.

Jones said the first three items are infrastructure related and will improve/maintain service across the system.

“The fourth item is a direct benefit to our electric customers that was presented by senior management and approved unanimously by the board,” Jones said, “It will provide over $1.7 million in savings across all service lines during the next 12 months.”

The resolutions –

  • Authorized a reduction in Electric System Standard Service retail rates for the duration of TVA’s Pandemic Relief Credit.

At its August Board Meeting, the Tennessee Valley Authority (TVA) Board of Directors approved a Pandemic Relief Credit for all customers of TVA. This credit will equate to a 2.5% reduction in wholesale power cost for Jackson Energy Authority.

The rate reduction will be for a period of one year, beginning October 1, 2020.

TVA is allowing Local Power Companies to decide how to use the wholesale power savings.

Management recommended passing the Pandemic Relief Credit on to its customers through a retail rate reduction based on JEA’s cost of service allocations. Based on historic energy consumption, this relief credit will return over $1.7 million to JEA customers across all standard service classes.

  • Approved the inspection and treatment of transmission poles for the Electric System.

The Board approved the contract with Osmose Utility Services of Tyrone, GA to inspect and treat approximately 1,000 wood transmission poles, based on their submitted bid of $55,835.30.

  • Authorized the replacement of nine 46kV 2000 Amp substation switches at the South Jackson Primary Substation.

The Board authorized the contract with Davis H. Elliot based on their low bid of $94,075.00 for the replacement of nine 46kV 2000Amp switches at the South Jackson Primary Substation.

  • Authorized the contract for the Bells Highway Lift Station replacement for the Wastewater Division.

The Board approved the contract with Quinn Construction Corporation with the following conditions:
Contingent upon approval of the Tennessee Department of Economic and Community Development, the bid of Quinn Construction Corporation in the amount of $935,000.00, which represents the lowest, most responsive base bid, be accepted for the construction of the Bells Highway Lift Station Replacement contract.

The Jackson Energy Authority will be responsible for all local cash matching funds needed for the completion of this CDBG National Disaster Resilience (NDR) project.

(PHOTO: Monte Jones, chairman of the board, Jackson Energy Authority)

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