Clearwater looking to cut ties with Duke Energy

CLEARWATER, Fla. - Clearwater City Council members green-lit a study that will look into potentially dumping Duke Energy and creating a publicly-owned utility, as Duke's president warned of a potential legal battle.

The council unanimously approved paying the consulting company, NewGen Strategies and Solutions, to conduct a feasibility study that will address risks, benefits, a possible takeover of the existing electrical infrastructure and whether customers' costs would be lowered.

According to documents included in the council's agenda this week, the power would be purchased wholesale from a third-party and distributed by the city.

The city's 30-year agreement with Duke ends in December 2025 and Mayor Bruce Rector said this is the right time to determine whether renewing the deal is in the best interest of residents.

"We have a duty to do our due diligence on behalf of the citizens Clearwater and to not enter into these negotiations without really equipping ourselves with the adequate information to understand electric service to this community," Record said.

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Council members pointed to Winter Park, which launched its own city-run utility company and has reportedly saved the community money.

"They switched in 2005, and have lowered customer rates by 27.8 percent. Last year, they made $9 million profit," said Councilman Ryan Cotton.

Duke Energy's Florida President, Melissa Seixas, spoke to the council during the meeting and issued, what sounded like, a warning.

"The City of Clearwater's current agreement does not have a purchase option and Duke Energy's system is not for sale, not here, not anywhere within the state of Florida," Seixas said, adding the company has no plans to sell any of its infrastructure. "We will not be negotiating a purchase price if the city is actually interested in municipalization and taking over the system. You will have to go through a process of condemnation, which is lengthy, expensive and very complicated."

The study is expected to last nine months.

If Clearwater decides to operate its own power company, it would join 33 other Florida communities in doing so, including Lakeland, Bartow and Wauchula.