More than two years of studying a city-owned utility ended with Clearwater, Florida, sticking with Duke Energy. Rather than take over electric service, the city signed on for another 30 years with its longtime provider.
The decision gives the city some near-term financial certainty. It also closes off an option that a city-commissioned analysis said might have cut residents' electricity costs by millions over 25 years.
What happened?
Alongside a memorandum of agreement laying out about $2 million in commitments from Duke Energy to Clearwater, the City Council unanimously approved a new 30-year contract with the utility, Tampa Bay Beacons reported.
A 2024 study ordered by Clearwater found that residents could save millions over 25 years under a city-run electric system. That estimate was part of the city's review of whether, after its previous 30-year agreement expired, it should break from Duke and operate its own utility.
A referendum on the homestead exemption weighed heavily on the decision. Using figures from the state Revenue Estimating Conference, council members said Clearwater could lose upwards of $28 million a year in property tax revenue if voters approve increasing the exemption for primary residences.
Taking over the electric system would also have required the city to pursue Duke's equipment through the courts, a route the utility said would be drawn-out and expensive.
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Why does it matter?
The city's decision preserves the status quo with a monopoly utility that has already frustrated many locals. Some residents have struggled with rising power bills, while others have objected to the cutting of dozens of trees for line maintenance.
A city-run utility would not have been easy or cheap to build, but supporters saw it as a chance to create more local accountability and potentially reduce costs over time.
By stepping away from that path, Clearwater chose stability over a public-power experiment that some believed could have delivered broader benefits.
What's being done?
Under the agreement, Duke Energy will provide $600,000 for storm hardening, long-term beautification work, and planning for downtown retail.
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The city will also receive $100,000 over five years for a shipping container mall in the North Greenwood neighborhood. Duke will work with Clearwater to purchase naming rights for Coachman Park, with $30,000 annual payments and additional shade there as part of the arrangement.
Those commitments do not directly replace what some residents saw as the larger promise of municipal power: lower electricity costs and greater local decision-making.
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