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Duke Warns Clearwater of Billion-Dollar Utility Takeover Costs

Energy and Utility

Business Honor
20 May, 2025

Duke Energy estimates Clearwater's municipal utility takeover could cost over $1 billion, raising concerns amid ongoing evaluation.

Duke Energy is stepping up efforts to maintain its role as the primary electricity provider for Clearwater, Florida, releasing a new study estimating that a city-led takeover of its utility infrastructure. Infrastructure is expected to cost between $1.13 billion and $1.52 billion. The utility giant released the report unannounced, ahead of the city’s own ongoing possibility study on forming a municipal electric utility.

Since its long-term franchise arrangement with Duke Energy expires this December, Clearwater is looking at its first chance in 30 years to reconsider its energy supplier. Citing interest in possibly cheaper rates and local control the city council decided in 2023 to assess the operational and financial feasibility of switching to a publicly operated utility. Duke's research presents a stark financial picture. Since its infrastructure is not for sale, the business warns the city would have to use renowned domain to obtain it through a legal process that would require Clearwater to reimburse Duke for all assets seized.

Bruce Rector, the mayor of Clearwater, voiced doubt, pointing out that the study fits with Duke's objectives. Still, he acknowledged the importance of fully understanding the financial implications before making a decision. Rector noted that, in Florida, municipally-owned utilities generally charge lower rates than investor-owned counterparts, highlighting this as a key factor driving the city's interest.

Duke Energy stated its goal was transparency, declaring that the study was conducted by a third party to provide impartial information. The company also said it continues to work together with Clearwater’s consultants and remains committed to serving the community. The city’s independent study is still in progress, delayed partly due to outstanding data requests from Duke. A final decision on Clearwater’s energy future hinges on the findings of that report.