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Clearwater considers new Duke Energy agreement
Clearwater officials are evaluating a long-term utility partnership after months of debate over whether to establish a municipal power network or maintain ties with Duke Energy. FOX 13's Aaron Mesmer reports.
CLEARWATER, Fla. - Clearwater officials are evaluating a long-term utility partnership after months of debate over whether to establish a municipal power network or maintain ties with Duke Energy.
Clearwater utility choices
What we know:
City officials spent months examining whether to launch a municipal power network or extend their relationship with Duke Energy. The previous 30-year contract expired in 2025, and both parties have since relied on monthly extensions to maintain service.
A feasibility study conducted last year indicated that a city-run utility could lower electric rates for local customers. However, purchasing the necessary Duke Energy infrastructure could cost between $500 million and $1 billion.
Duke Energy investments
What they're saying:
Duke Energy Florida State President Melissa Seixas stated that a longer agreement enables the company to increase its community investments.
"It allows us to invest more in many ways, having that longer term investment," Seixas told council members on Monday.
Clearwater Mayor Bruce Rector noted that the intensive study provided crucial insights regardless of the final decision.
"I personally think we made the right decision in doing this study. We really gained so much information," Rector said.
Florida rate disputes
The other side:
The utility provider recently announced plans to accelerate tax credits normally distributed over a 15-year window to prevent a baseline rate hike. Duke Energy Florida spokesperson Ana Gibbs stated that these savings will eliminate the planned base rate increase established under a prior rate settlement agreement.
The consumer advocacy organization Food & Water Watch challenged this framing of the financial credits. Florida State Director Brooke Ward argued that the money belongs to families who have faced excessive utility charges.
"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 noted that Florida residents face severe utility costs, ranking among the 10 most expensive states nationwide.
"So at the end of the day, Floridians are paying more to keep the lights on than people are in other states," Ward said.
Upcoming city council
What's next:
Local leaders will continue their evaluation of the proposed 30-year contract during Thursday's city council meeting. No definitive choice has been finalized by the council yet.
The Source: The information in this story was gathered from Clearwater City Council meetings, where officials discussed the proposal, as well as statements and interviews from Duke Energy Florida representatives and Food & Water Watch advocates.