The City Council of Clearwater, Florida, on Sept. 29 voted to take the next step in the possible formation of a public power utility for the city.
Included among the materials for the meeting was an overview of public power provided by APPA.
At the City Council meeting, council members heard a presentation from Scott Burnham, Partner & Business Development Lead at NewGen Strategies and Solutions, related to findings from a Municipal Utility Feasibility Study the consulting firm completed for the city.
NewGen partnered with Barr Engineering Company and Duncan & Allen, LLP, to develop the assumptions, analyses, and recommendations for the study.
Duke Energy Florida currently provides electric services in Clearwater, Pinellas County, and a large portion of central and northern Florida. Duke’s electric service to the city is granted through the terms and conditions within a Franchise Agreement with the City that was signed in 1995 with Florida Power Corporation and transferred to Duke in 2012 as a result of its merger with Progress Energy, the study noted.
The Franchise Agreement expires on December 31, 2025, the timing of which offers the city an opportunity to evaluate different options for its electric service provider, including the creation of a potential Clearwater MEU, the study said.
Details on Study
The results of the analysis conducted for the NewGen study suggest that the Clearwater MEU could potentially provide service to its customers at lower average system retail rates than those estimated for Duke while providing reliable power to its citizens, the study said.
The study established that it is potentially financially feasible for Clearwater to establish a municipal electric utility based on the assumptions described herein.
If the City decides to proceed with development of the Clearwater MEU at this time, it has the ability to identify “off-ramps” at which point it can reevaluate that decision in response to new developments, including developments in its relationship with Duke, the study said.
The study said these developments could include an incorporation of the City’s policy objectives within a future Franchise Agreement with Duke.
“Such policy objectives could include specific future improvements in the distribution system reliability metrics or the identification and measurement of other service metrics or customer programs that address economic development concerns within the City,” the study noted.
At the meeting, the Clearwater City Council voted in favor of moving forward with an appraisal process tied to the potential formation of a public power utility.
APPA offers a variety of resources on municipalization on its website.
