Clearwater Duke Energy deal: City council clears first vote on 30-year contract

Clearwater city leaders voted unanimously Thursday to advance a 30-year franchise contract with Duke Energy, choosing corporate power over a proposed public alternative. 

Clearwater power vote

What we know:

Clearwater City Council voted 5-0 to approve the first step of a 30-year contract with Duke Energy. The decision followed an independent feasibility study that explored whether the city should establish its own public power utility.

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While a city-owned system could have lowered electricity rates, buying Duke Energy's existing infrastructure would cost hundreds of millions of dollars. Under the proposed arrangement, the city would only distribute electricity, while Duke Energy would remain responsible for generating it.

Mayor Bruce Rector noted that the process pressured Duke Energy to address community concerns, though a government takeover would take years and burden taxpayers with high legal fees. Councilmember David Allbritton also expressed concern over whether a municipal utility could restore power lines as quickly as Duke Energy after major storms.

Public power debate

The other side:

More than 20 residents spoke at the meeting, with a majority urging council members to reject the deal. Opponents argued that a public utility would provide superior long-term benefits and significant financial savings for local families.

Resident Marley Price stated, "I think that they should continue to look into public power here, because the MOU, the benefits that are being offered by Duke Energy tonight, it seems like they are not quite what they uncovered from public power in the feasibility study and the appraisal that they got back from the independent third party." 

Another resident, Jorge Vasquez, urged officials to seize the opportunity to create a profound lifestyle change for local consumers.

Finalizing the contract

What's next:

The agreement is not official yet, as city council members must pass a second vote to finalize the contract.

In a statement, Duke Energy corporate officials thanked city staff for their collaborative approach and commitment to the long-term interests of the community. Read the full statement below: 

"Duke Energy appreciates the thoughtful consideration the mayor, city council, and staff have given to the franchise agreement. The review and dialogue throughout this process reflect a genuine commitment to ensuring the agreement serves the long-term interests of our customers and the community. We appreciate the City’s collaborative approach in working with our team to reach a meaningful agreement that benefits customers, supports the City’s priorities, and lays the groundwork for an even stronger relationship with Duke Energy."

The Source: The information in this story was gathered from the City of Clearwater and Duke Energy, who provided official statements and study data, as well as interviews conducted by FOX 13. 

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