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Appraisal approved for city-owned power company
Haley Hinds reports.
CLEARWATER, Fla. - Before the City of Clearwater decided to greenlight the appraisal process to create a city-owned electric utility company, residents voiced their support while Duke Energy employees touted how much they did for the community after last year's hurricanes.
What we know:
Clearwater started researching the idea of dropping Duke Energy last year after residents worried about rising rates.
The study, by NewGen Strategies and Solutions, claims a city-owned electric utility company could save the average resident $17 a month in its first year alone.
However, it did note there could be significant legal and other challenges.
To get its own utilities, the city would have to buy Duke Energy's system, which the company says would cost about $1.1 billion, and Duke Energy said its equipment is not for sale.
They produced their own study in May.
That means the city would have to seize it through eminent domain, which would involve a lengthy and expensive legal process.
What they're saying:
Some say that's worth it, while employees say they're an important part of the community.
"They say it'll take tax dollars, but it won't," one resident said. "You will get the same emergency response."
While one Duke Energy employee responded, "we already have projects underground, in front of city hall and several other areas that are part of a storm protection plan."
The other side:
The State President of Duke Energy Florida showed up to the meeting to hear the study's discussion.
Melissa Seixas said, "it speaks for itself that the consultants state in there, there's no guarantee for cost savings."
"We really encourage the mayor and others to sit down and talk with us and negotiate with us like we have in years past," she added. "We can arrive at the same conclusions without the money, time, and energy."
What's next:
City council will move forward with the appraisal.
They said they are very appreciative to Duke Energy and their staff for what they do for the community and what they did during the storms.
They want them to know they are just going to the next step.
That does not mean they are completely moving toward a city-owned electric utility company.
The Source: FOX 13 gathered this information from the City of Clearwater city council meeting and prior reporting.