Clearwater signed on for 30 more years with Duke Energy, even as neighboring St. Petersburg moves toward a public vote on replacing the utility.

The Clearwater City Council voted unanimously to approve a new 30-year franchise agreement with Duke Energy Florida, ending a two-year effort to determine whether the city should buy Duke's local electric grid. The council first approved the deal in July, and the council finalized the agreement by early August, according to Bay News 9.

The decision came despite a city-commissioned feasibility study by NewGen Strategies & Solutions that found Clearwater customers could see savings under municipal ownership. That study valued the cost of acquiring Duke's local distribution system at approximately $572 million.

Mayor Bruce Rector said the transition costs and legal fees would have been too heavy for taxpayers, WUSF reported.

The new agreement preserves Clearwater's 6% franchise fee, according to Tampa Bay Business & Wealth. Duke also committed to fund a citywide economic development strategy, a downtown retail recruitment plan, North Greenwood Community Redevelopment Agency support, infrastructure resiliency projects and Coachman Park improvements.

Not everyone was satisfied. Clearwater homeowner Lori Green told the council: "Who holds this group accountable? We're looking at 30 years. If this is how they're dealing with their customers now — I'm a customer … pay my bill every month — what can we look forward to?"

St. Petersburg weighs public power

In St. Petersburg, the same debate is just heating up. The city's own 30-year franchise agreement with Duke expired July 31. Officials extended the existing terms indefinitely while the city awaits results from a $590,000 feasibility study, Fox 13 reported. Duke serves about 161,000 customers in St. Petersburg and generates roughly $23 million a year in franchise fee revenue for the city.

On Sept. 2, a coalition of grassroots groups launched a Public Power campaign aiming to collect more than 16,200 petition signatures. The goal is to place a municipal utility measure on the 2028 ballot, Fox 13 also reported. Proponents point to cities like Orlando and Key West, where residential electric rates average about 20% lower than Duke's charges.

Duke is pushing back. A consultant study the company commissioned from Concentric Energy Advisors estimated it could cost St. Petersburg between $2.7 billion and $4.1 billion to acquire Duke's distribution grid, according to the Florida Phoenix. Duke spokesperson Ana Gibbs called the idea "unaffordable and irresponsible," Fox 13 reported.

Concentric Energy Advisors made similar cost arguments against Clearwater's municipal utility effort before the council voted to renew.

The St. Petersburg feasibility study results and public feedback sessions are expected in 2027.