Special committee on JEA.

Let me begin by introductions, starting on my far left.

Colleen Hamsey, Council of Research.

Mary Stepopoulos, Office of General Counsel.

Brian Parks, Council Auditors Office.

Philip Peterson, Council Otter.

Jason Teal, Council Legislative Council.

Ron Salem, group two at large.

Jacoby Pittman, District 10.

Nick Allen at large group three, just visiting.

Welcome, Mr.

President Elect.

We're appreciate you being here.

We're going to have an approximate 20 to 30 minute presentation on combined cycle, and then we'll take the rest of the time with questions.

Let me swear in this Miss Brooks.

I just soon do it at the beginning, just so we're sure we cover it.

And as I indicated to her, anyone that comes up to answer any questions going forward will have to be sworn in as well.

Do you solemnly swear or form to tell the truth, the whole truth, and nothing but the truth on the penalties of perjury?

Thank you.

The floor is yours, Miss Brooks.

Thank you, Mr.

Chair and Committee members.

I'm going to give a presentation that was presented to the JEA board by Ricky Erickson and Julie Crawford on August 26th of 2025.

And instead of creating a new presentation for this committee, I'm going to walk through what the board saw and provide you with an update of this exciting project for the city of Jacksonville.

Sorry, starting off with a the JEA team here, the project team for the combined cycle.

I'm one of the chief champions of the project along with our chief financial officer Ted Phillips.

But I have with us today Ricky Ericston, our Chief of Electric Systems, Jim Stanson, the director of energy production, Jamila Akree, our project manager, Melinda Fisher, the director of electric systems planning, William Goodrich, our manager of resource planning, and Kevin Holbrooks, our senior director of environmental services.

This is the project team that's leading this project for the new combined cycle for the city of Jacksonville.

We're also supported by a host of consultants, Black and Beach Resource Innovations In Front Consulting, and the law firm of Sturms and Weaver with our primary attorney being Brooke Humphrey.

So part of this presentation.

Okay, I wasn't sure.

The historical generation portfolio slide is what the, you know, what for history has shown.

The chart shows JEA's electric capacity through the years, both assets that we own and operate and power purchase agreements we have with other utilities.

As you can see, there's been a lot of activity in the 2000s.

We added seven combustion turbines, which we call CTs, and converted two of those to a combined cycle at the Brandy Branch site, and we repowered north side units one and two, creating more fuel diversity.

CTs use natural gas as their main fuel source.

Looking past 2011, there was not much activity, mainly due to the decline in sales following the 2008 financial crisis, coupled with increasing energy efficiency.

There was just not a demand for additional capacity.

In fact, we had more capacity than we needed.

At that time, JEA co-owned two coal power plants with Florida Power and Light, SGRPP 1 and 2 and SHERE Unit 4.

FPL was in the period of retiring coal generation, and so that coupled with a decrease in JA's demand led to an agreement to retire SJRPP in 2018 and then the retirement of SHERE Unit 4 in 2022.

Since then, JEA has only added capacity through power purchase agreements.

We have not built new generation in 14 years.

So that's the history of our generation.

So now we're going to talk about the seasonal capacity and the reserve margin and what we need to look for in the future.

These charts represent JEA's projected capacity and reserve margin for both winter and summer.

The bars represent JA's existing resources.

Just like the previous slide, the black line shows our projected peak demand each year.

That is the maximum energy required from our customers at any point in time.

The red line is what we call the reserve margin.

It is simply 15% added to the black line.

The margin of capacity is required by the Florida Public Service Commission for all Florida electric utilities to ensure statewide reliability.

It is clear that we are short capacity in 2031.

Due to the retirement Northside 3, our 48, I guess 49-year-old, 524 megawatt natural gas and oil unit.

Looking out into the 40s, there's an even greater need for the current power purchase when the current power purchase agreements expire.

Another thing to note before we move on is that demand forecast is very conservative, only taking organic growth into account, but to the past couple of years, weather has had a larger impact on demand and sales, making it less predictable.

Last year, a hot summer and cold winter resulted in an all-time summer peak of 2,980 megawatts on July 29th of 2025, exceeding the previous summer high, which was in August of 2007.

Another data point we look at is megawatts produced in a day.

We have been tracking this since 2007, and at the top 40 peaking days in the last 18 years, six occurred in 2025, six out of 40.

And the all-time highest day was January of 2025.