BUSINESSMANAGEMENTREVIEW.COMAUGUST - 202399assets, and an expansion of our energy efficiency programs, all by 2030.Lastly, because these utilities are accountable to the local government, they are more likely to involve local residents in decision-making processes and provide opportunities for community input and feedback. This was certainly the case across our months-long IRP development process. Engaging with our customers builds trust and transparency between the utility and the local community, which can in turn support economic growth and development.Role in Economic DevelopmentBy providing essential services and competitive rates that enable businesses to thrive and operate, JEA and other municipal utilities play an important role in area economic development. Utilities are one of the few economic agents that directly support each new household and business, includingexpansions or relocations to the region. Here's how: Attracting new businesses: New businesses may not relocate to Jacksonville specifically because of utilities, but we demonstrate the accessibility, transparency and focus on excellence in customer service that help new business gravitate to our area. Supporting existing businesses: Municipal utilities also play a critical role in supporting existing businesses by sitting down with them to understand their growth and future needs Creating jobs: Municipal utilities generally create more local jobs and spur economic activity when compared to IOUs. Since IOUs are accountable to shareholders, their incentive is to reduce operational costs, which has the potential to reduce payrolls and purchases from the local economy--both of which drive down employment. Also, infrastructure projects--power plants, water treatment facilities--create both construction and operations and maintenance jobs.Our economic development plan focuses on strategic asset management, site readiness, downtown revitalization and an enhanced incentive program to attract meaningful growth in Northeast Florida, with the latter being of particular benefit to our commercial customers.The 18 current customers in the incentive program enjoy a six-year declining discount on services starting at 30%, with an additional 5% discount for those that have excess capacity or located in the downtown Jacksonville area. It applies to customers with new and expanding electric loads of 300Kw or more and who commit to adding at least 15 full-time employees. Since its inception in 2013, JEA customers who have taken advantage of this incentive have reported creating 6,228 jobs.A proposal to create an additional tier to the existing program is currently under consideration by our board of directors. The enhanced program, designed to attract larger, more competitive projects, includes a new nine-year declining discount starting at 45%, with the same 5% additional discount for those a locating or expanding in a downtown location or certain industrial areas. It will apply to customers in one of Florida's targeted industry sectors like aerospace/defense, advanced manufacturing and life sciences, have a new or expanding load of 500kW or more, and commit to adding at least 50 full-time employees.To sum it up, the value of municipal utilities is measurable and real. Whether we're giving money back to our local governments, providing low-cost services to our customers, or bolstering job creation through our support of new or existing businesses, municipal utilities are the backbone of growth and prosperity for local communities and economies. 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
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