GREEN COVE SPRINGS – While agreeing a rate increase is necessary to upgrade and expand the electricity needs, the city council admitted it faces the task of selling the plan to its residents after receiving a rate study from Leidos and Florida Municipal Power Agency during a special meeting Tuesday.

FMPA’s Navid Nowakhtar said usage and base rates needed to be increased by 16% during the next three years to modernize and expand services, especially with more than 1,000 new homes approved for construction.

Nowakhtar suggested a 14% increase this year, a 6% in the fiscal year 2026 and 2% in 2027, equating to an overall 16% increase. The 14% spike in the current budget would raise $1.96 million.

Council would need to approve any increase at a future meeting.

“A 14% increase is pretty heavy,” said councilman Matt Johnson.

Residents have complained of costly utility bills, but Mayor Steven Kelley said the city includes all services, including electric, water and stormwater management, into one bill. For example, Clay Electric only charges electricity, while Clay County Utilities bills for water, and the county adds stormwater management as a property tax.

Kelley said the city must provide an easy-to-understand explanation about the need for the electric increase.

“We should have one concise, bite-sized consumable, whether it's a social media approach, a FAQ or some combination thereof and a vastly condensed presentation,” he said. “Maybe (we can) link up and have a professional presentation explain half a dozen questions that any customer will have when they see this coming down.”

The next regular city council meeting will be at 6 p.m. Tuesday, April 1, at City Hall.