Clearwater considers replacing Duke Energy with city-owned electric utility

CLEARWATER, Fla. - A debate over who should provide electricity in Clearwater is taking shape as city leaders explore the possibility of replacing Duke Energy.

Clearwater electric grid debate

By the numbers:

The 30-year franchise agreement between Clearwater and Duke Energy expired in December 2025. A city-commissioned appraisal recently valued Duke Energy's local power assets at approximately $265 million.

Inside his Clearwater warehouse, Mike Mastruserio, founder of Proforma, a printing company, says he’s satisfied with Duke Energy.

City-owned electric proposal

What they're saying:

"They do a great job and whenever there's an outage, they tell me about it," Mastruserio said. "They tell me how long it's going to be out. That's good communication."

Mastruserio is skeptical of the city's effort to take over electric service.

"I don't think Clearwater should be meddling with something they don't do regularly," Mastruserio said.

Mastruserio also questions whether the city has the staffing needed to operate its own electric utility.

"They don't have the manpower. Their staffing levels are down now," Mastruserio said. "For them to bring on a whole new electrical department in order to do that, that's going to be a big task… and I don't think they're up for it."

Lower-cost resident options

The other side:

Clearwater Mayor Bruce Rector says city leaders are exploring ways to lower costs for residents.

"We're just trying to do the best we can for our customers in Clearwater," Rector said. "We want the best value for them, the lowest cost possible."

Duke Energy disputes the city's appraisal and says a government takeover would be far more expensive than the city's estimates.

In a statement, Duke Energy spokeswoman Ana Gibbs said a report prepared by Concentric concluded that taking over Clearwater's electric grid would cost about $1 billion.

"Separating Clearwater from the electric grid is complex, risky and would take years," Gibbs said.

Duke Energy also added that a renewed franchise agreement would best serve Clearwater and its residents.

Rector disagreed, pointing to Clearwater's city-owned gas utility, which has operated for more than 100 years.

"They make it sound like we're incapable of operating an energy utility," Rector said. "We've shown over 100 years we are capable of doing that."

Upcoming city council meeting

What's next:

Clearwater City Council is expected to discuss the appraisal and possible next steps during its meeting on July 16.

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