Municipal Electric Utility Study

Project Overview and History

Clearwater provides natural gas, water, sewer, stormwater, and solid waste services to its residents. Duke Energy has provided electric service since 2012. 

• View the Duke Energy Franchise Agreement

The city has contracted with NewGen Strategies and Solutions to study the feasibility of Clearwater distributing electricity directly to its citizens and businesses. Almost three dozen cities in Florida already provide electricity to their constituents. The most recent city in Florida to municipalize was Winter Park.

The city can operate a distribution-only utility without constructing or owning power plants or transmission lines. According to NewGen, the estimated cost of acquiring Duke Energy’s distribution infrastructure is approximately $572 million. 

About NewGen

NewGen brings decades of experience interacting with electric utilities, and the credibility of recent studies recommending municipalization (e.g. San Diego) and studies recommending against it (e.g. Chicago). The cost of the study equates to 4.8% of one year of franchise fees the city receives from its franchise agreement. The study costs will be paid through available special program funds. NewGen partnered with Barr Engineering Company and Duncan & Allen, LLP, collectively the NewGen Project Team, to develop the assumptions, analyses, and recommendations for this study. This report provides the results of the study conducted by the NewGen Project Team.

• View the NewGen website

Next Steps

The study conducted by NewGen is a feasibility level estimate. It provides an approximation of cost to help the city evaluate whether we are “in the ballpark.” The next step is to evaluate the assets in detail. Like other property, this requires an appraisal. The city council has authorized a system appraisal, which is expected to be completed by the end of February 2026. The appraisal will either confirm, disconfirm, or modify the $572 million estimate. All information will be available to the public and reviewed at public meetings.   

Resources

• American Public Power Association (APPA) - Summary and Explanation
• City Council Contact Information