Clearwater’s City Council recently voted unanimously to continue digging into what it would cost — and what it would take — for the city to end its reliance on Duke Energy and run its own electric utility.
“The study before us shows something remarkable,” said Councilmember Ryan Cotton, as quoted by Mahoney & Edmonds. “We have an opportunity to do good things every day … this is one of those rare opportunities to do something monumental.”
What the Study Reveals
The analysis was commissioned by Clearwater and conducted by consultant firm NewGen Strategies & Solutions.
- In the short term, residents might see roughly 7% annual savings on their electricity bills.
- Over the long haul (25 years), those savings might grow to around 18% per year.
- The study cost Clearwater up to $504,000 to complete.
However, Duke Energy pushes back. In response, the utility has presented its own analysis suggesting that acquiring and rebuilding the requisite infrastructure could exceed $1 billion — a figure that, if accurate, would create a major barrier to the city’s takeover option.
The debate now includes how to fairly appraise Duke’s assets (poles, wires, substations), how to transition operations with minimal disruptions, and how to manage the risk associated with running an electric utility.
Why This Could Be Great News for Clearwater Residents
- Lower Electric Bills Over Time
The most direct and compelling benefit is cost savings. If the study’s projections hold, households could see meaningful reductions in their monthly bills — 7% less in the early years, and even greater savings as time goes on. That means more disposable income for families and businesses alike. - More Local Control & Accountability
Under a city-run utility, residents would have a more direct voice over rates, service standards, and capital investments. Decisions would be made locally instead of being driven by an outside, investor-owned utility whose decisions might prioritize profits. - Potential for Innovation & Renewable Energy
A municipal utility might more nimbly adopt renewable energy, demand response, storage, or grid modernization — initiatives that might otherwise take longer under a large utility’s more centralized structure. Clearwater could design its system with future resilience in mind. - Economic & Community Benefits
The shift could generate local jobs in operations, maintenance, and infrastructure upgrades. Furthermore, reduced electricity costs could make the area more attractive to commercial or industrial development, boosting the local tax base. - Long-Term Stability
With more predictable rates and less dependence on external utility decisions, the city and its residents might be better shielded from sudden utility rate hikes, regulatory swings, or financial pressures on a big utility company.
The Road Ahead
Mahoney & Edmonds describe Clearwater’s approach as cautious but determined. At present, the Council is not committing to a full takeover — instead, it’s choosing to gather more data: to appraise Duke’s assets, refine cost estimates, and model detailed transition plans.
Reference: Emily L. Mahoney & Colbi Edmonds (Tampa Bay Times)
