The City of Clearwater, Florida, is considering establishing its own power utility, potentially terminating its long-standing partnership with Duke Energy. On Monday night, the city council unanimously agreed to proceed with appraisal efforts and to devise a timeline for upcoming legal actions.
Duke Energy has said they won’t be negotiating, and the recommendations made in the study are already in the works by their company.
“This company has been a bully,” said one person during public comment.
During the meeting, a Duke employee highlighted, “Many of us, both living and working in the Clearwater area, are well-equipped to serve the community’s energy needs.”
Numerous residents and stakeholders engaged in the discussions about possibly discontinuing services from Duke Energy, voicing their grievances. Meanwhile, both current and former Duke Energy workers pointed out the advantages of the company’s presence in the community.
“You got to have safe individuals who know the system, who can do the work safely,” said another person during public comment.
“I’m paying $500 and $600 a month. That’s a month. The question is why?” said another woman.
A feasibility analysis suggested potential cost savings for customers that are less than Duke’s Annual Effective Rates, if the city were to take this route. The study advised hiring private companies to handle operations, and even considered the acquisition of Duke Energy’s system. However, at an August council meeting, Duke Energy officials stated the system was not available for purchase.
Melissa Sixas, Duke Energy Florida President, stressed, “We won’t negotiate a sale price. If the city truly wants to municipalize and take over operations, it must engage in a condemnation process, which is lengthy, costly, and extremely intricate.”
In response to the study, Duke Energy issued a statement on Monday, expressing that higher startup and acquisition expenses might negate any anticipated cost savings and might impose extra charges on taxpayers.
They also said some of the rates in the study were not accurate. City leaders chose to move on to the appraisal part of the study to get some consistent information on costs.
“We feel like with (the) report we just gotten that shows there could be immediate savings, and may allow us to invest in underground utilities more. We have to take a hard look at it,” said Mayor Bruce Rector.
If the city chooses not to move forward, it could enter a franchise agreement negotiation with Duke Energy. The current contract ends December 31.
