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Duke Energy claims it would cost $1 billion for Clearwater to drop utility company, mayor responds

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Published  May 19, 2025 10:38pm EDT
Clearwater
FOX 13 News
Clearwater considers creating our own public utility

Clearwater considers creating our own public utility

Jordan Bowen reports.

The Brief

    • Duke Energy unexpectedly released a study which found that it would cost the city between $1.13 billion and $1.52 billion to take over Duke’s equipment and form a municipal-run utility.
    • Last summer, Clearwater City Council voted to conduct a study to evaluate the possibility of dropping Duke Energy as the city's electricity provider.
    • After the vote to investigate dropping Duke, the company's representatives warned the city that their equipment isn't for sale.

CLEARWATER, Fla. - Duke Energy is amping up its fight to stay plugged in as the main utility provider for all residents and businesses in the City of Clearwater. On Monday, the company unexpectedly released a study which found that it would cost the city between $1.13 billion and $1.52 billion – depending on timing and other factors – to take over Duke’s equipment and form a municipal-run utility.

"It's certainly favorable to them, which is what you would expect," Clearwater Mayor Bruce Rector said.

RELATED: Clearwater looking to cut ties with Duke Energy

The backstory:

Last summer, Clearwater City Council voted to conduct a study to evaluate the possibility of dropping Duke Energy as the city's electricity provider, considering their 30-year agreement with Duke expires in December, giving them the first opportunity in 30 years to reevaluate their power supplier, but Rector explained they had no warning Duke Energy would be releasing their own study.

The city's study is still being conducted.

"In the State of Florida all the municipally-owned or government-owned utilities charge lower rates than the four investor utilities, so that's interesting to us," Rector said.

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Dig deeper:

After the vote to investigate dropping Duke, the company's representatives warned the city that their equipment isn't for sale, which would mean the city would have to seize it through eminent domain, which would require the city to compensate Duke Energy for taking over their equipment.

"We hope to have our study back soon. We don't have it yet, and part of that's, because we've been waiting, or our consultants have been waiting on some additional information from Duke," Rector said.

The other side:

In a statement released Monday, Duke Energy wrote that they conducted their own study "to ensure our customers and the city of Clearwater had a third-party analysis."

"Throughout this process, we have been cooperative in sharing system information with the city’s consultant," the statement read. "We value our relationship with the city and remain committed to serving our Clearwater customers."

The Source: The information in this story was gathered by FOX 13's Jordan Bowen. 

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