Clearwater residents will keep getting their electricity from Duke Energy for the next three decades after the City Council voted 5-0 on Aug. 7 to approve a new 30-year franchise agreement, according to Tampa Bay 28. The deal includes nearly $2 million in community investments over the life of the contract, covering infrastructure resiliency, improvements at Coachman Park and a looped electrical feed for the Clearwater Police Department.

Feasibility study found cheaper option available

The decision came despite a city-commissioned feasibility study that found residents could save between 7% and 18% on electric bills under a municipal utility, depending on the time horizon. Clearwater spent more than $600,000 on that study by consulting firm NewGen Strategies and Solutions. NewGen estimated acquiring Duke's local distribution infrastructure would cost about $572 million, according to the city's project page.

"This is what we felt like was the best solution for our citizens … Citizens of Clearwater and our taxpayers who would be funding the bill to make the transition happen," Mayor Bruce Rector said on Aug. 11, when the Tampa Bay Beacons reported on the council's approval. Rector cited the upcoming property tax referendum and the financial risk of a transition as key factors.

St. Petersburg tests the opposite approach

Now a neighboring city is testing the opposite approach. A coalition called Public Power St. Pete launched a petition campaign Sept. 2 to place a city-owned utility measure on the 2028 ballot, the Florida Phoenix reported. Organizers need more than 16,200 signatures to qualify the charter amendment. If voters approve it, St. Petersburg would become the first Florida city in more than 20 years to launch its own electric utility.

St. Petersburg's starting point differs from Clearwater's. Its 30-year Duke franchise expired at the end of July, and the St. Petersburg City Council voted in June to spend $590,000 on its own feasibility study, also conducted by NewGen. That study is expected in 2027.

Josh Sproat of the Suncoast Sierra Club said at the Sept. 2 press conference that electric bills are too high and Duke Energy's rate increases are "out of control." Duke Energy's Florida rates rose 49% between December 2020 and January 2026, according to Food and Water Watch data cited in the Florida Phoenix report.

Duke pushes back on acquisition cost estimates

Duke is pushing back. The company retained Concentric Energy Advisors, which estimated acquiring St. Petersburg's grid could cost between $2.7 billion and $4.1 billion. Duke spokesperson Ana Gibbs called the proposal "unaffordable and irresponsible" in a statement. Duke also filed a request Sept. 2 with the Florida Public Service Commission to lower rates starting in January 2027, as we reported Sept. 3.

Clearwater keeps door open for the future

Clearwater's agreement is nonexclusive. That means the city retains the legal option to pursue public power in the future, even under the new 30-year contract.