Overview

• City Council voted unanimously to obtain an appraisal and a transition timeline as it evaluates forming a municipal electric utility before the Dec. 31 franchise expiration.
• The NewGen study projects average customer savings of about 7% for five years and roughly 18% over the following 25 years, with a central asset valuation of $572 million and a stated range from approximately $386 million to nearly $1 billion.
• Duke Energy Florida President Melissa Seixas challenged the study’s methodology and rate assumptions, said savings are not guaranteed, and warned that extended proceedings could drive costs toward $1 billion.
• Duke proposed renegotiating the franchise as an alternative, highlighting undergrounding projects, vegetation management, reliability metrics, new customer affordability programs, and openness to a shorter term such as 10 years.
• City Attorney David Margolis said the city would remain eligible for the current 16% franchise fee during a transition, public testimony was split, and council members stressed this step does not commit Clearwater to municipalization.