Clearwater is set to keep Duke Energy as its electricity provider for the next three decades, and the utility is putting up nearly $2 million in community investments to seal the deal.

The City Council voted unanimously Wednesday, July 23, to advance the franchise agreement, which runs through 2056 and includes a 6% franchise fee paid by Duke to the city. A final vote on the franchise and separate approval of the memorandum of agreement outlining Duke's commitments are both scheduled for Thursday, Aug. 6, according to WTSP.

What Duke is offering in exchange

Here's what Duke pledged under the MOA:

  • $600,000 for infrastructure resilience projects
  • $100,000 to the North Greenwood Community Redevelopment Agency, tied to a shipping container mall planned in the neighborhood
  • $30,000 per year in naming rights payments for Coachman Park, plus additional shade improvements
  • 20 years of funding for citywide beautification
  • A backup power line (looped electrical feed) for the Clearwater Police Department
  • Help developing a downtown retail strategy

The retail strategy commitment has no dollar figure, timeline or named district attached to it in any public documents released so far.

Council members weigh fiscal risk against public power

"Our responsibility is not to make the boldest decision in this process," council member Mike Mannino said at the July 23 meeting. "Our responsibility is to make the wisest one."

Council member David Allbritton framed the deal as a pragmatic choice given fiscal uncertainty. He pointed to a November 2026 property tax referendum that could cut Clearwater's annual revenue by as much as $20 million, and contrasted Duke's roughly $2 million in commitments against what he described as a potential $1 billion cost to acquire Duke's infrastructure through eminent domain.

A feasibility study weighed the public-power alternative

The city spent more than $600,000 on a feasibility study by consulting firm NewGen that found forming a municipal utility could save residents about 7% annually on electric bills in the first five years, growing to roughly 18% over the following 25 years. A separate appraisal valued Duke's assets within city limits at approximately $265 million, well below Duke's own estimate of more than $1 billion.

A public-power advocate calls the deal insufficient

Not everyone supports the renewal. Jason Scott, who leads the advocacy group Dump Duke, told WTSP the council still has a clear path to pursuing public power and characterized the MOA concessions as minor items Duke should have provided years ago.

Duke Energy Florida President Melissa Seixas said the agreement goes beyond electricity service, calling it "the foundation to help us both serve the city and the citizens of Clearwater."

The council will take its final vote on the franchise agreement and the memorandum of agreement at its Thursday, Aug. 6, meeting. Residents can attend or submit public comment through the city clerk's office.