CLEARWATER, Fla. (WFLA) — In a strategic move, Clearwater has allocated an additional $100,000 to explore the feasibility of establishing its own municipal power utility, potentially severing ties with Duke Energy.
This additional funding will extend the current feasibility study to include a comprehensive appraisal process, a transition approved by the council in their most recent session.
The funds for this initiative will be sourced from special project revenues, ensuring no impact on the city’s budget, tax rates, or utility costs. Should the appraisal results prove unsatisfactory, the council retains the flexibility to explore alternative options.
“Our goal is to equip taxpayers with the most comprehensive information possible,” stated Council member Mike Mannino.
The council aims to gain a deeper understanding of the complexities involved in such an ambitious project, although some recommendations might lead to legal challenges with Duke Energy. During their meeting, council members reminded legal advisors of Duke Energy’s previous declaration that their infrastructure is not on the market.
“Similar assertions were made by Florida Power and Progress Energy, both of which eventually sold. Even Duke Energy recently divested a 20% equity stake,” City Attorney David Margolis noted. “I’ve learned that in business, nothing is truly off the table until it is.”
In a statement last month, Duke Energy highlighted shortcomings in NewGen’s study, saying some of it eliminated speculated savings, and that they would be willing to address areas of concern during negotiations.
City leaders said they are sticking to their commitment of doing the study.
“We’re just trying to do the right thing for our citizens,” said Mayor Bruce Rector.
The city attorney said at some point they will sit down with Duke Energy and they don’t know if they’ll even be interested in making a purchase offer to Duke. It all depends on what comes from the appraisal.
