CLEARWATER, Fla. — Winter Park’s gamble on public power nearly 20 years ago is now inspiring a similar debate that’s unfolding 100 miles away in Clearwater.
This week, Clearwater voted unanimously to take the first steps toward the possible creation of a public utility and takeover of Duke Energy’s local infrastructure. Some city leaders, like Councilmember Ryan Cotton, cited Winter Park’s success as evidence a city-run utility can work.
"They faced the same doubts, the same risks,” Cotton said. “Today, they are enjoying stronger reliability, quicker restoration, and a system that reflects their community's values.”
WATCH: Orlando suburb’s public power journey could serve as a roadmap for Clearwater
Winter Park, located just north of Orlando, made the transition in June 2005, years after residents complained of constant outages under the Florida Power Corporation. Randy Knight, who was the assistant city manager at the time and now leads the city, recalls just how dire the situation was.
“It was somewhat legendary in Winter Park how many outages and how long the outages were,” he said.
The process to municipalize began in 2000, months before the city’s franchise agreement with Florida Power Corporation was set to expire. The fight that ensued was expensive and took years to litigate and mediate. In fact, the legal fight went all the way to the Florida Supreme Court.
However, Knight said the eventual outcome was worth it. According to Knight, rates eventually went down, and today, 81% of Winter Park’s lines are underground.
“We’re about 25-35% lower on average on the monthly bill than Duke Energy is,” Knight said. “We have been extremely satisfied.”
Clearwater’s feasibility study concluded customers could save an average of 7% in the first five years and as much as 18% annually over 25 years under a public utility. However, another analysis estimated the city would face more than $1.1 billion in costs to acquire Duke’s system.
Some Duke Energy customers say the risk is worth it.
“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.
Others, like Duke customer Joe Evich, fear the city is underestimating the risks.
“We’re going down a billion-dollar path,” he said.
Duke Energy insists it is best positioned to serve Clearwater and has warned that its property is not for sale.
“We think we are in the best position to serve the customers of Clearwater. We are proud to do so every day,” a company representative said in the Monday meeting.
In a letter to council, Duke Energy Florida President Melissa Seixas stressed any acquisition would require eminent domain and argued that issues like undergrounding and vegetation management could be addressed through franchise negotiations. Clearwater’s 30-year franchise agreement with Duke expires at the end of December.
Despite the looming fight, Knight advises Clearwater not to shy away from the idea of creating a public utility.
“It’s definitely worth the exploration,” he said. “Don’t buy the hype and the fear tactics that will be thrown at you.”
At the same time, he cautioned that Clearwater leaders and residents must be fully committed before moving forward with any takeover.
“You certainly have to know your ‘why,’ because it will be a tough battle,” Knight said. “But if you do, I think it’s worth pursuing.”
In a statement sent to Tampa Bay 28 on Wednesday, Duke Energy maintained its stance against a takeover.
"We appreciate the Clearwater City Council’s recognition of the exceptional work Duke Energy accomplished to recover from the three hurricanes last year," spokesperson Ana Gibbs wrote, in part. "We’re deeply disappointed the council voted to move forward with a formal appraisal of our distribution system – a major step toward attempting to seize our system in Clearwater through eminent domain."
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