Municipal Electric Utility Study

Power lines with setting sun behind them

Update: City Advances Duke Energy Franchise Agreement

Following nearly two years of independent studies, financial analysis, extensive public input and careful deliberation, the Clearwater City Council approved the first reading of a new franchise agreement with Duke Energy July 16.
 
Throughout the process, city leaders carefully evaluated the feasibility, costs and long-term impacts of creating a municipal electric utility before determining that renewing the franchise agreement was the best option for the community. The agreement will return to city council for a second reading Aug. 6.
 

Previous Updates

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. 

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. 

 

NewGen Items on City Council Agendas and Presentation

Approval of the Feasibility Study with NewGen on Aug. 1, 2024

NewGen Presentation and Council Discussion on Sept. 29, 2025

Appraisal Agreement Contract Amendment With NewGen on Oct. 15, 2025

About NewGen

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.

Feasibility Study Information

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.

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