What changes for Florida cooperatives when the Jim Woodruff power rates rise in October?

The schedule that replaces JW-1-L

The Jim Woodruff Project sits on the Apalachicola River near the Florida-Georgia line. Its power has been sold under rate schedule JW-1-L since the Federal Energy Regulatory Commission confirmed that schedule in February 2022. JW-1-L expires on September 30, 2026. A second schedule, JW-2-F, covered sales to Duke Energy Florida. That schedule was cancelled effective October 6, 2024 after the two parties agreed to terminate their contract in April 2024. No obligations remain under JW-2-F.

The new schedule carries the designation JW-1-M. It applies to public bodies and cooperatives that take delivery within Florida. The Administrator for the Southeastern Power Administration confirmed and approved it on an interim basis on September 17, 2026. The order was published in the Federal Register on September 22, 2026. Final authority rests with FERC. The interim approval lasts until FERC confirms and approves the schedule on a final basis or until September 30, 2031, whichever comes first.

The numbers behind the increase

Southeastern proposed the adjustment in a Federal Register notice on May 15, 2026. The annual generation revenue requirement came to $8,662,652. That figure represents an increase of about 6.7 percent over the prior requirement. The capacity charge rises 6.6 percent to $9.02 per kilowatt per month. The energy charge rises 10.8 percent to 24.72 mills per kilowatt-hour. One mill equals one-tenth of a cent.

A public information forum was held on June 4, 2026 at the Florida Electric Cooperatives Association in Tallahassee. A comment forum followed on July 7, 2026 at the Southeastern Power Administration office. Both offered virtual attendance via Microsoft Teams. The comment period was originally set to close on August 13, 2026. Southeastern extended it by 15 calendar days to August 27, 2026 after administrative revisions were made to align with the 2023 Power Marketing Policy, purchase power contracts executed in April 2024, and current billing practices.

What the comments revealed

One participant asked why Corps revenues were projected to decline. The answer: the projected Corps Revenue of $32,348 reflects the average of the previous five fiscal years, 2021 through 2025. That revenue comes from timber sales, recreation leases, soda machines, maps, ice, payphones, and other miscellaneous items. A review of past financial statements showed the decline in timber sales revenue as the primary factor.

Another participant noted an accumulated deficit in 2024. The deficit amounted to $341,676. Total Operating Revenue for fiscal year 2024 was $8,028,116. Total Annual Expenses including interest totaled $8,369,793. No investments were due that year. In fiscal year 2025 the study reflected Net Revenue of $2,484,316, enough to recover the 2024 deficit and contribute toward repayment obligations.

Written comments from customers called the increase range a reasonable reflection of rising costs since the last rate modification. They highlighted higher Operation and Maintenance expenses attributed to the Corps and a modest increase in SEPA marketing costs. They also noted that deficits accumulated between 2021 and 2025 had been repaid without being carried forward, a feature that helps keep rates low. Concerns remained about the Corps classifying certain environmental stewardship expenses as hydropower-related costs.

Environmental costs excluded from the rate base

The Administrator used discretion under Section 5 of the Flood Control Act of 1944 to exclude certain projected environmental stewardship joint-to-power expenses from the Jim Woodruff revenue requirement. The excluded total reaches $2,390,183.40 for fiscal years 2026 through 2030. For fiscal years 2031 through 2076 the annual exclusion is $429,904.20. Certain joint costs relating to the curation of archeological and natural resources remain included in projected joint expenses. The Administrator determined these exclusions keep rate-setting practices aligned with federal statutes, project authorizations, and official joint-use cost allocation reports.

Repayment and legal authority

A revised system power repayment study prepared in March 2026 shows that with the proposed rates all system power costs are paid within the appropriate repayment period. The study meets the cost-recovery criteria set by existing law and DOE Order RA 6120.2. The Administrator certified the rates are consistent with applicable law and are the lowest possible rates to customers consistent with sound business principles.

Authority to develop rates was delegated to the Southeastern Administrator by Delegation Order No. S1-DEL-RATES-2016 effective November 19, 2016. Authority to confirm and approve on an interim basis was delegated to the Deputy Secretary of Energy by that same order, then to the Under Secretary for Infrastructure by Delegation Order No. S1-DEL-S3-2024 effective August 30, 2024, and redelegated to the Southeastern Administrator by Redelegation Order No. S3-DEL-SEPA-2023 effective April 10, 2023. Final approval authority remains with FERC.

Service terms for the customer

The electric capacity and energy supplied will be three-phase alternating current at a nominal frequency of 60 cycles per second. Delivery occurs at the Project point of interconnection. The monthly rate consists of the demand charge of $9.02 per kilowatt of monthly contract demand and the energy charge of 24.72 mills per kilowatt-hour. Contract demand is the amount of capacity in kilowatts stated in the contract which the Government is obligated to supply and the Customer is entitled to receive. Energy made available is the customer's ratable percent of the energy made available from the Project based on the purchaser's allocation of power to the sum of all allocations of Government power from the Project in each billing month, less losses. The billing month ends at 12:00 midnight Central Prevailing Time on the last day of each calendar month. The customer must provide, arrange for, and maintain transmission service at its own expense.

Where the interim period leads

The interim approval is effective through September 30, 2031 unless extended or until FERC confirms and approves the schedule or a substitute on a final basis. The document does not state how many customers currently take service under the schedule. It does not specify the total megawatt capacity of the Jim Woodruff Project. It does not describe the timeline for FERC's final review. The next step is FERC action. Until then, the rates in JW-1-M are the rates that Florida cooperatives will pay.