A $1.6 million federal grant will fund the underground conversion of utility lines to improve system reliability and prevent storm damage to equipment.
The Jacksonville Beach City Council accepted a U.S. Department of Energy grant to complete the work west of Penman Road, between Second Avenue North and 12th Avenue North.
The council also authorized Mayor Chris Hoffman and City Manager Mike Staffopoulos to sign a grant agreement between the city of Jacksonville Beach and the Florida Division of Emergency Management.
Electrical engineer Nick Johnson outlined the grant program and project scope during the July 20 meeting.
The Department of Energy created the grant program in 2023 to improve the reliability and resilience of the nation's electric infrastructure. Beaches Energy Services submitted its storm hardening plan in 2024 to move existing overhead electric utilities underground within the project boundaries.
“The total project cost is $2.45 million. Beaches Energy Services will contribute approximately $850,000 to fund the initiative,” Johnson said. “This grant will fund approximately 65% of the total project cost, allowing Beaches Energy to leverage federal funding to complete the project, which improves reliability while minimizing impact to our ratepayers.”
Johnson said the underground conversion of multiple distribution lines has been part of Beaches Energy Services' capital improvement plan for 30 years. As a result, 85% of the city's electrical distribution system is already underground.
“It's much safer and more reliable,” Johnson said.
Beaches Energy Services completed the first phase of the underground conversion near Arden Way and Tanglewood Road. Phase two will convert 2.5 miles of lines, but overhead lines will remain west of Penman Road, where a significant tree canopy exists.
“Obviously everyone knows when we have storms, the great majority of the storm cleanup is where the larger canopies are,” Council Member Greg Sutton said. “Back in there against the marsh, the tree canopy is big with a lot of the old trees. Overhead utilities really create an additional issue, so I'm glad to see that we're focusing on that.”
Johnson said the utility agency also has a flood mitigation plan to identify low-lying areas prone to historical flooding. Beaches Energy elevates its equipment within floodplain areas to preserve its integrity and allow easier access for repairs during a flood event.
“The lines themselves can stay wet, but the rest of the infrastructure we try to keep dry if possible,” he said. “You can't prevent everything, but we would have much larger problems if it were 30 feet in the air. You can only put it so high.”
Council Member Bill Horn called the city's access to federal funds a “huge win” for Jacksonville Beach. “This is two-thirds of the cost,” he said. “Obviously, with the amount of water that comes down, there is a need for this work to be done, and I'm glad it's being done with our tax dollars.”
The city's fiscal year 2026 budget includes funding for the local match portion of the project. Construction is expected to occur over the next two years.
