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Clearwater considers new deal with Duke Energy
After years of analysis into whether Clearwater should operate its own electric utility, city leaders are expected to take up a proposal Thursday to extend the city's partnership with Duke Energy. FOX 13's Kellie Cowan reports.
CLEARWATER, Fla. - After years of analysis into whether Clearwater should operate its own electric utility, city leaders are expected to take up a proposal Thursday to extend the city's partnership with Duke Energy.
City council is scheduled to consider approving a new 30-year franchise agreement with Duke Energy during its 6 p.m. meeting. Council members will also vote on the first reading of an ordinance authorizing the agreement.
Clearwater & Duke Energy history
The backstory:
The city's previous 30-year franchise agreement expired in 2025. Since then, Clearwater and Duke Energy have continued operating under monthly extensions while city leaders explored whether creating a municipal electric utility would better serve residents.
A feasibility study commissioned by the city found a municipal utility could potentially offer lower electric rates over the long term. However, the report also estimated it could cost hundreds of millions to acquire Duke Energy's infrastructure needed to operate an independent system.
Duke Energy has also maintained that its assets are not for sale, and says the figure to buy them out is closer to $1 billion. The company has also hinted at the possibility of lengthy legal proceedings if the city attempted to acquire them through eminent domain.
If approved Thursday, the agreement would renew Duke Energy's authority to provide electric service within Clearwater for the next three decades. Because the ordinance is on first reading, additional council action would still be required before the agreement becomes final.
Infrastructure funding incentives
What they're saying:
Duke Energy Florida State President Melissa Seixas said a 30-year agreement would provide the stability needed to make additional commitments in Clearwater.
"It allows us to invest more in many ways, having that longer term investment," Seixas said.
Clearwater Mayor Bruce Rector said Monday the city's extensive review of municipal power options was worthwhile, regardless of the outcome.
"I personally think we made the right decision in doing this study. We really gained so much information," Rector said.
To encourage approval of the agreement, Duke has also offered nearly $2 million for city infrastructure, economic development and beautification projects.
The company has additionally announced it will accelerate tax credits that would normally be spread over 15 years, saying the move will help customers avoid another base rate increase next year.
Consumer utility overcharges
The other side:
Consumer advocacy group Food & Water Watch argues those tax credits should not be viewed as a new customer benefit.
Florida State Director Brooke Ward said the credits simply return money to customers following previous utility overcharges.
"In reality, they're returning money that belongs to the families that they've overcharged. The same families who are struggling to make ends meet," Ward said.
Ward also argued Florida residents already face some of the nation's highest electricity costs.
"At the end of the day, Floridians are paying more to keep the lights on than people are in other states," Ward said.
Future council action
What's next:
Clearwater City Council is scheduled to vote on the proposed franchise agreement and the ordinance's first reading during its 6 p.m. meeting Thursday.
Courtesy: City of Clearwater
If approved, the ordinance will return for a second reading and final adoption before the new 30-year agreement can take effect.
The Source: This story was written using Clearwater City Council meeting agendas and previous council discussions, along with statements from Duke Energy officials and Food & Water Watch representatives.