News Summary
The Clearwater City Council has voted unanimously to conduct an appraisal for acquiring Duke Energy’s electric infrastructure, following a feasibility study that suggests significant savings for local residents. The study estimates that transitioning to a municipal utility could save Clearwater households around $17.70 per month. With concerns over high rates and service reliability from Duke Energy, the council seeks greater local control over electricity provision. The appraisal represents a crucial step in potentially establishing a municipal electric utility to benefit the community.
Clearwater City Council Moves Forward with Electric Utility Appraisal
The Clearwater City Council has unanimously voted to proceed with an appraisal for acquiring Duke Energy’s electric equipment after a recent feasibility study, signaling a potential shift toward establishing a municipal electric utility. The council’s decision comes on the heels of findings from NewGen Strategies and Solutions, which highlighted significant potential savings for local electric customers.
Feasibility Study Findings
The feasibility study indicated that establishing a municipal electric utility could save Clearwater residents an average of $17.70 on their monthly electric bills. Mayor Bruce Rector pointed out that Duke Energy currently has the highest rates in Florida, prompting the city to explore alternatives for providing more affordable electricity to its residents.
Funding and Contract Expiry
In August 2024, the Clearwater City Council allocated $500,000 to conduct the feasibility study, aimed at analyzing the benefits and drawbacks of transitioning to a municipal electric utility. Duke Energy’s existing 30-year contract with Clearwater is set to expire on December 31, while a similar arrangement with St. Petersburg will not expire until August 2026. St. Petersburg’s council is also planning to conduct a feasibility study following the findings from Clearwater.
Cost and Valuation Overview
The valuation provided by NewGen for Clearwater’s potential takeover of the electric grid is estimated at approximately $572 million. In contrast, Duke Energy’s analysis has suggested that the costs could exceed $1 billion. This significant difference in assessments could influence the city’s decision-making process as it moves forward.
Projected Savings and Customer Impact
NewGen’s analysis anticipates that customers could see immediate savings of around 10% on their electric bills, with potential increases to savings of up to 18% within five years. Public speakers at the council meeting expressed a strong desire for a municipal utility, citing dissatisfaction with Duke Energy’s service and high billing rates.
Concerns and Criticism
Despite the enthusiasm for a potential municipal utility, public comments highlighted concerns regarding its feasibility, particularly related to storm recovery and service reliability. Scott Burnham from NewGen noted that a municipal utility could promote local economic development and potentially offer discounted rates for low-income households.
However, Duke Energy’s president, Melissa Seixas, criticized the NewGen study, stating that it lacks guarantees for cost savings and emphasizing flaws in its methodology. Duke also stated that the transition to a municipal utility would be a lengthy process requiring the use of eminent domain, contrasting with NewGen’s assumption of an immediate conversion.
Local Control and Future Steps
Councilmember Ryan Cotton expressed the need for greater local control over the electric utility, arguing that managing the utility locally would better serve Clearwater residents compared to a distant corporation. The city plans to review legal insights on Duke Energy’s current contract and its implications for the transition to a municipal utility.
Conclusion
The Clearwater City Council’s decision to seek an appraisal for Duke Energy’s electric infrastructure represents a critical step in considering a transition to municipal electric service. As the council navigates the complexities of this potential shift, community feedback and further studies will play a vital role in shaping Clearwater’s energy future.
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HERE Resources
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St. Petersburg Moves to Explore Municipal Electric Utility
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St. Petersburg Proposes Utility Rate Increase Amid Billing Concerns
Brookfield Acquires Stake in Duke Energy Florida
St. Petersburg Evaluates Electric Power Provider Amid Rising Costs
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Additional Resources
- Fox 13 News: Clearwater Moves Forward with Electric Utility Appraisal
- Wikipedia: Municipal Utilities
- Florida Politics: Clearwater to Move to Next Step in Dumping Duke
- Google Search: Clearwater Electric Utility
- St. Pete Catalyst: Clearwater Takes Another Step Toward Dumping Duke
- Google Scholar: Municipal Electric Utility
- My Clearwater: What It Takes to Run a Water Utility
- Encyclopedia Britannica: Electric Utility
Author: STAFF HERE PETERSBURG WRITER
ST PETERSBURG STAFF WRITER The ST PETERSBURG STAFF WRITER represents the experienced team at HEREStPetersburg.com, your go-to source for actionable local news and information in St Petersburg, Pinellas County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Grand Prix of St. Petersburg, Localtopia, and SHINE Mural Festival. Our coverage extends to key organizations like the St. Petersburg Area Chamber of Commerce and St. Pete Downtown Partnership, plus leading businesses in finance, manufacturing, and healthcare that power the local economy such as Raymond James Financial, Jabil, and Bayfront Health St. Petersburg. As part of the broader HERE network, including HEREJacksonville.com, HEREOrlando.com, HERETallahassee.com, and HERETampa.com, we provide comprehensive, credible insights into Florida's dynamic landscape.
