JEA, the municipal utility in Jacksonville, Florida, has announced a significant investment of $1.57 billion to build a new 675-MW combined cycle gas plant. This new facility will replace an aging gas unit expected to be retired by 2031.
JEA Board Chair Joseph DiSalvo emphasized the necessity of this development to ensure reliable energy for all customers. “The risk is unacceptable if we delay on this,” he stated during a recent board meeting.
The board unanimously endorsed the plan on August 26. However, consumer and environmental advocates express concerns that this move could lead to higher energy bills and a greater dependency on natural gas for Jacksonville residents.
Sierra Club Senior Campaign Organizer Suzanne Sapp criticized the decision, arguing, “JEA is locking us into 30 years of higher bills and climate pollution at a time when other cities are successfully utilizing solar and storage for affordable energy.”
JEA has suggested developing this gas plant on multiple occasions over the past ten years, including in its 2023 resource plan. The existing Northside Unit 3, which has served the area for nearly 50 years, is set to be decommissioned.
In making this decision, JEA weighed the benefits of constructing the new plant against the option of purchasing power from other utilities. Building the plant allows for better control over operations and dispatch, along with job creation in the area, JEA noted. They also claim it offers the lowest long-term costs per megawatt-hour.
However, the Sierra Club pointed out that the projected costs for the new plant have surged from $553 million in 2019 to $1.57 billion today. They criticized JEA for rejecting a lower-cost power purchase agreement with Florida Power and Light, citing storm risks while overlooking the perils of fossil fuel price fluctuations and other environmental impacts.
The new gas plant will be situated on the site of the former St. Johns River Power Park, a retired coal facility. Environmental advocate Lisa Rinaman from the St. Johns Riverkeeper expressed disappointment that JEA is not planning to retire its existing coal plants and is committing to fossil fuels for another three decades. She raised concerns about the potential vulnerabilities this decision poses to the community and the nearby river.