AUGUST- 2023BUSINESSMANAGEMENTREVIEW.COM8From an economic development perspective, the 2020s are off to a great start in Northeast Florida, and our local municipal utility is leading the way with a contribution of more than $1 billion so far, in this decade, in the total economic impact.Late last year, JEA, Jacksonville's community-owned utility, commissioned an economic and workforce analytics firm to assess the impact of our operations and capital improvement expenditures on the Jacksonville, Fla., economy. As a municipal provider of energy and water services to more than one million customers in Northeast Florida, we worked with the firm to collect the detailed spending data, necessary to account for JEA's economic impact to the region's bottom line.Key findings included: JEA spent about $838.7 million in total direct operational and capital improvement expenditures in 2021 Payroll (including benefits) for JEA's 1,968 direct employees: $253.9 million Procurement spending on day-to-day expenses to operate and maintain JEA and its infrastructure: $229.5 million Capital improvement expenditures to build new utility infrastruc-ture: $355.3 million Those direct expenditures supported approximately 8,140 total direct, indirect and induced jobs throughout the Jacksonville metropolitan area, and generated roughly $1.088 billion in total economic impact as measured by gross regional product. In 2021, JEA contributed just over $120 million in financial support to the City of Jacksonville, providing additional benefits for area residents.These numbers, we believe, underscore the value of municipal utilities as economic drivers in particular regions.Economic Value of Municipal UtilitiesFor one, municipal utilities impact the local economy by generating revenue for the local government. Community-owned utilities, like JEA, are structured as not-for-profit entities, thus allowing them to reinvest profits back into the utilities or the local community via municipal services. This revenue typically funds such essential investments as healthcare, safety and infrastructure improvements.Additionally, municipal utilities generally offer, on average, lower residential rates than investor-owned utilities (IOUs). According to a February 2023 electric bill comparison by the Florida Municipal Electric Association, across the state of Florida, 1,000 kWh residential customers living in municipal service areas paid nearly 11% less than the average IOU customer. In April and May, JEA was the lowest-cost provider in the state.Municipal utilities can also have a positive effect on the environment, which can benefit the local economy. Many are investing in renewable energy sources, such as wind and solar power, which reduces greenhouse gas emissions and promotes sustainable development. In fact, JEA's recently revealed Electric Integrated Resource Plan (IRP)includes, among other things, a power supply portfolio of 35% clean energy, plans to retire less efficient generating By Paul Mitchell, Vice President, Economic Development, JEAMUNICIPAL UTILITIES SPUR REGIONAL ECONOMIC DEVELOPMENT
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