GREEN COVE SPRINGS – After hearing more than an hour of contemptuous and often animated pushback from residents Tuesday, the Green Cove Springs City Council approved the first of two steps to increase electric bills by 20%.

While residents argued the city either mismanaged its electric company or should join Clay Electric, FPL or JEA, city leaders said former council members failed to impose rate increases for the past nine years, which allowed the company’s infrastructure to deteriorate.

The money is needed to upgrade, maintain and expand the city’s electric department as it faces the growth of 6,500 new homes already in the planning stages.

Mayor Steven Kelley said some of the city’s transformers and streetlights are 45 years old and need to be converted to LEDs. He also said the city hasn't increased its electric costs in nine years.

“The cost of those hasn’t doubled, they’ve tripled,” he said. “We have these aging transformers and the whole system — and yes, our reserves are depleted. We should have been consistently raising the rates, and we enjoy the greatest reliability I've ever seen in our electrical system. We don't want to give that up. We have affordability and reliability issues, and we don't want to lose that reliability.

“It’s an uncomfortable environment we find ourselves in.”

The proposed ordinance calls for a 14% increase to start in June and a 6% increase in October. The increase would result in an extra $19 for every 1,000 kilowatt-hours of use.

The ordinance also details an increase from $2,200 to $2,600 for each lot in a new development and from $125 to $200 for new service.

“We're not a utility like Clay Electric, which has 200,000 customers,” Kelley said. “We have 4,000 customers. We are aware of the impact it has whenever these rates increase. We have less customers to spread it out. We do understand that impact is quite mighty.”

The plan outraged the majority of residents.

“Do you care about me? This disgusts me,” said Linda Hobbs. “You need to stop. Let (new developers) pay!”

The city increased its millage rate from 4.7 to 5.3 to expand its electricity company ahead of the Saratoga Springs development of 4,489 homes and another 2,100 homes in the Rookery. Council members said taxpayers will recoup the money when developers pay impact fees — which, in theory, should reduce millage rates in the future.

Added with the increases in millage rates, residents said they were tired of higher costs. Ron Price was spirited when he approached the council. He asked why Green Cove Springs runs its own electric company instead of buying it from an outside source.

“Have you considered buying from FP&L, or Clay Electric or JEA? They produce power, and you're not that far away from JEA, so I guarantee it,” he said. “And my next question is justified, (20%) rate increase? I want an answer from someone. Can y'all answer me? I'm not trying to cause trouble. I just want straight, honest answers.”

Price turned to the audience and raised his hands as if to incite a response from them, too.

Kelley said he asked city staff to explore options for families using 1,000 kilowatts or fewer to make adjusted increase payments before the second, and final, reading on May 20. Moments later, the council voted to approve the first reading with Vice Mayor Thomas Smith voting against the ordinance.