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Clearwater officials took a step toward a long-term future with Duke Energy as the city's electricity provider, even though a recent study found that a public utility might eventually lower costs for residents.
By a 5-0 margin, councilmembers advanced a proposed 30-year franchise deal that critics said would largely maintain the current arrangement instead of expanding local control over power service.
What happened?
On Thursday, the Clearwater City Council unanimously backed the initial approval needed for an extended agreement with Duke Energy, according to Fox 13. One more council vote is still needed before the agreement goes into action.
Before the vote, officials reviewed an independent study examining the possibility of launching a city-owned electric utility. The analysis found that public power might bring down rates in the long run, but leaders said acquiring Duke's current power infrastructure would likely cost several hundred million dollars upfront, Fox 13 reported.
Mayor Bruce Rector said the process encouraged Duke to respond to concerns raised by the community, while also warning that a government takeover could take years and leave taxpayers facing major legal costs.
Councilmember David Allbritton also questioned whether a city-run utility would be able to restore power as quickly as Duke after severe storms.
Public comment was overwhelmingly opposed to the proposal: More than 20 people addressed the council, with most calling on officials to walk away from the contract and keep the public-power option alive.
Why does it matter?
The debate centers on who controls electric service, how much households will pay each month both in ever-increasing electric bills and during tax season, and how much flexibility the city will have to shape its energy system.
A 30-year agreement can provide stability, but it can also make it harder for residents to change course if better options emerge. If the city's own study found that public power could reduce rates over time, moving forward with a corporate franchise could cut that conversation short before residents see the full benefits identified in the study.
The decision comes as storm recovery, grid reliability, and rising household costs remain ongoing concerns in Florida. Communities with less leverage over their power systems may have fewer tools to push for lower bills or for a system better tailored to local needs.
What's being done?
The agreement isn't final yet. The council must vote once more before it takes effect.
Even though city leaders moved the deal forward, the public power review still had a meaningful impact — Rector said the process itself helped push Duke to address issues raised by the community. This shows how scrutiny from residents and local officials can influence utility negotiations.
Clearwater resident Marley Price captured the frustration voiced by opponents at the meeting: "I think that they should continue to look into public power here, because the MOU, the benefits that are being offered by Duke Energy tonight, it seems like they are not quite what they uncovered from public power in the feasibility study and the appraisal that they got back from the independent third party."
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