Clearwater officials are considering a 30-year utility partnership with Duke Energy after months of debate over whether to establish a municipal power network or maintain ties with the energy company.

Background

A feasibility study conducted last year indicated that a city-run utility could lower electric rates for local customers. However, purchasing the necessary Duke Energy infrastructure could cost between $500 million and $1 billion.

Duke Energy Florida State President Melissa Seixas stated that a longer agreement enables the company to increase its community investments. “It allows us to invest more in many ways, having that longer term investment,” Seixas told council members.

Rate Disputes

The utility provider recently announced plans to accelerate tax credits normally distributed over a 15-year window to prevent a baseline rate hike. However, the consumer advocacy organization Food & Water Watch challenged this framing of the financial credits, arguing that the money belongs to families who have faced excessive utility charges.

Florida residents face severe utility costs, ranking among the 10 most expensive states nationwide. “In reality, they’re returning money that belongs to the families that they’ve overcharged. The same families who are struggling to make ends meet,” said Brooke Ward, Florida State Director of Food & Water Watch.

Next Steps

Local leaders will continue their evaluation of the proposed 30-year contract during an upcoming city council meeting. No definitive choice has been finalized by the council yet.

Original reporting: Tampa Bay Florida News (HLL/CB) — read the source article.