CLEARWATER, Fla. — Clearwater leaders are considering a historic move: severing ties with Duke Energy and establishing a city-run public utility.
On Monday, the city council voted unanimously to move forward with an appraisal of Duke’s assets and the creation of a timeline for potential next steps, which advances a process that could ultimately take years to play out.
“This is one of those rare opportunities to do something monumental,” said Councilmember Ryan Cotton.
WATCH: Clearwater takes step toward creating public electric utility as Duke Energy pushes back
The city spent about $504,000 on a feasibility study.
That report concluded customers could save an average of 7% in the first five years under a public utility and as much as 18% annually over the next 25 years. However, another independent analysis by Concentric Energy Advisors projected the city would face more than $1.1 billion in costs to acquire Duke’s infrastructure.
The push to cut ties with Duke comes as many electric customers complain about rising bills.
“When I look back at our power bills from like a few years ago — five years ago — it was around $150, generally, and now we’re up to like $320 a month,” said Shane Meagher with the Dump Duke campaign.
Opponents, including Duke employees and supporters, warned the council that a takeover could be far riskier and more expensive than projected.
“We’re going down a billion-dollar path,” said Duke customer Joe Evich.
During the meeting, Duke Energy leaders argued that Duke is best positioned to serve the city, especially during hurricane recovery. They also said some of the numbers in the city’s study were flawed.
“We think we are in the best position to serve the customers of Clearwater. We are proud to do so every day,” said Katie Christian, who handles government relations for the company.
In a letter sent to the city council on Monday, Melissa Seixas, Duke Energy’s president in Florida, stressed the company’s property is not for sale.
“Any acquisition would have to utilize the long process of eminent domain,” the letter stated.
Seixas wrote that concerns such as undergrounding lines and vegetation management can be addressed through franchise negotiations.
“We welcome meaningful discussions on these topics prior to the agreement’s expiration in December and are open to considering a shorter franchise agreement term, such as a ten-year renewal,” she wrote.
Clearwater’s 30-year franchise agreement with Duke Energy expires at the end of December.
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