Clearwater to vote on sticking with Duke Energy
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Organizers with the Dump Duke campaign at a news conference in St. Petersburg. Photo: Kathryn Varn/Axios
For two years, Clearwater officials have explored whether leaving Duke Energy and launching the city's own electric utility would be worth the potential savings to residents.
Why it matters: City Council members could answer that question Thursday night.
State of play: On the agenda is whether to grant Duke another 30 years as Clearwater's electricity provider, despite a city-commissioned study that found a municipal utility could lower rates for residents.
- Should Council members approve the agreement, a final vote will be scheduled at a later date.
Yes, but: Thursday's vote will show where the mayor and Council members stand after two consultant studies and numerous discussions about the future of the city's power grid.
- The decision could also have implications beyond Clearwater. St. Petersburg leaders are considering a similar shift and recently approved a feasibility study to examine the issue.
The latest: Consulting firm NewGen Strategies & Solutions last month completed an appraisal of the Duke-owned facilities and equipment Clearwater would need to acquire to run its own utility.
- The report put the estimated value at about $265 million. That's way less than Duke's estimate of $477 million to $695 million, per the Tampa Bay Times.
- Duke has said its property isn't for sale, so the city would likely have to obtain it through eminent domain, an often expensive and lengthy legal process.
Zoom in: In addition to the proposed 30-year contract, Duke and city officials negotiated an agreement for the electric company to support city priorities, including by:
- paying $150,000 toward developing a strategy to bolster retail offerings downtown;
- donating $100,000 annually for the first six years of the agreement toward the city's infrastructure resiliency goals; and
- negotiating a 20-year naming-rights agreement for Coachman Park under which Duke would pay $30,000 a year to fund improvements, including building shade structures.
What they're saying: "Truly, this is not just a utility agreement," Duke Energy Florida president Melissa Seixas told Council members during a workshop on Monday.
- She said meetings with city leaders gave Duke "more insight into what is important around the priorities for the city of Clearwater."
The other side: "After years of studies and taxpayer money spent getting independent answers, Clearwater should not sign another bad deal for concessions this small," the Dump Duke Florida coalition said, calling on supporters to attend Thursday's meeting.
Between the lines: Regardless of Thursday's vote, Mayor Bruce Rector said during the workshop, "I personally think we made the right decision in doing this study."
- "We have gained so much information."
If you go: The meeting is at 6pm at the Main Library.