JEA contracts outside consultants to assist with formal solicitation process
JACKSONVILLE, Fla., July 25, 2019 /PRNewswire/ -- JEA, the 10th largest municipally-owned electric utility and one of the largest water and wastewater utilities in the country, announced today that it has hired J.P. Morgan Securities LLC. and Morgan Stanley & Co. LLC as financial advisors and Pillsbury Winthrop Shaw Pittman LLP and Foley & Lardner LLP as legal advisors to assist the utility with the execution of a competitive and open solicitation process. These companies will work closely with JEA and its Board of Directors to develop a strategic plan for JEA to maximize customer, community, environmental and financial value, the four corporate measures of value for JEA.
JEA will proceed with a competitive process requesting responses from industry sectors including financial, technology and energy and water. Throughout the months-long competitive process, JEA will work with its financial advisors and counsel to review and recommend the best solution to maximize value for JEA and all of its stakeholders.
"JEA is embarking on a once-in-a-generation opportunity to secure the utility's future and take care of its employees, customers and the greater Jacksonville community," said Ryan Wannemacher, CFO, JEA. "When the stakes are so high, it is critical to bring all experts to the table. J.P. Morgan Securities LLC, Morgan Stanley, Pillsbury Winthrop Shaw Pittman and Foley & Lardner will serve as JEA's trusted advisors throughout his process in order to ensure the best outcome for its stakeholders."
During JEA's July 23 board meeting, the board of directors unanimously voted for JEA to pursue any and all unconstrained, non-governmental opportunities for growth. In order to be considered, an outside entity responding to JEA's ITN must meet the following list of minimum requirements to protect JEA's employees, customers and the community.
- Financial
- >$3 billion of value to the City of Jacksonville.
- Customers
- >$400 million of value distributed to customers ($350+ paid to each JEA account - $1,400+ for customers with electric, water, sewer and irrigation accounts).
- At least 3 years of contractually guaranteed base rate stability.
- Environmental
- Commitment to fund provide City of Jacksonville and Duval County Public School system 100% renewable electricity by 2030.
- Commitment to fund and provide 40 million gallons per day of alternative water capacity for Northeast Florida by 2035.
- Community impact
- Protection of certain employee retirement benefits.
- Guarantee of employee compensation and benefits for three (3) years.
- Retention payments to all full-time employees of 100% current base compensation.
- Commitment to new headquarters and employees in downtown Jacksonville contributing to the economic development of the community.
About JEA: JEA is the largest municipal electric utility in Florida and one of the largest water and sewer utilities in the nation providing electric, water and sewer service to residents and businesses in northeast Florida. For more info, visit jea.com.
About JP Morgan Chase & Co.: JPMorgan Chase & Co. is a leading global financial services firm with assets of $2.7 trillion and operations worldwide. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of customers in the United States and many of the world's most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.
About Morgan Stanley: Morgan Stanley is a leading global financial services firm providing a wide range of investment banking, securities, wealth management and investment management services. With offices in more than 41 countries, the Firm's employees serve clients worldwide including corporations, governments, institutions and individuals. For further information about Morgan Stanley, please visit www.morganstanley.com.
About Pillsbury Winthrop Shaw Pittman LLP: Pillsbury Winthrop Shaw Pittman LLP is an international law firm with a particular focus on the energy, technology & media, financial services, and real estate & construction sectors. Recognized by legal research firm BTI Consulting as one of the top 20 firms for client service, Pillsbury Winthrop and its lawyers are highly regarded for their forward-thinking approach, their enthusiasm for collaborating across disciplines and their authoritative commercial awareness. To learn more, visit pillsburylaw.com.
About Foley & Lardner LLP: Foley and Lardner Foley & Lardner is a firm with over 1,100 lawyers in 24 offices across the United States, Mexico, Europe, and Asia, is serving as counsel to JEA for labor, employment, collective bargaining, procurement, regulatory matters, securities and general corporate matters. The firm has a long-standing and significant presence in Jacksonville and Florida and routinely assists clients in matters such as the work for being done for JEA, as well as litigation and government affairs.
SOURCE JEA
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