When the Clearwater City Council voted on Sept. 29 to move forward with an appraisal of Duke Energy Florida’s assets, members assured residents that the city was “committing to nothing more than a feasibility study.”
They said it was about getting information — not launching a government takeover.
But less than two weeks later, the Council is considering an expanded contract for its consultant, NewGen Strategies, whose proposal makes the city’s intentions look anything but neutral.
In its Oct. 2 submission, NewGen repeatedly describes “supporting the acquisition of Duke Energy Florida’s electric distribution system,” preparing “direct testimony… in a litigated venue,” and anticipating “lengthy interactions… during the lead-up to a trial.”
That language suggests Clearwater appears to be preparing not for a study, but for a courtroom.
If the Council’s goal is truly to lower costs for Clearwater families, there’s a much simpler and far cheaper way to do it: repeal the city’s 10% municipal utility tax. Every electric customer in Clearwater, including low-income residents and small businesses, pays that extra 10% on every monthly bill. Ending that tax would provide immediate relief without the lawsuits, consultants, and billion-dollar gamble.
Instead, the city is exploring a risky and enormously expensive scheme to seize Duke’s assets and run its own power company.
Recent analyses estimate the total cost could approach or exceed $1 billion, even before legal fees, consultant costs, and interest on the debt Clearwater would need to take on. Once the lawyers and appraisers get involved, those bills will mount fast. Just ask Boulder, Colorado, which spent nearly a decade and over $27 million fighting to take over its electric system before finally giving up in 2020.
After all that time and money, residents were left with nothing but higher costs and a cautionary tale.
The prospect of Clearwater heading down the same path should alarm anyone who values fiscal responsibility. Municipal takeovers rarely deliver the promised savings. What they do offer — almost without fail — are ballooning budgets, legal battles, and years of uncertainty. And unlike a temporary rate increase, the debt from a billion-dollar buyout would burden taxpayers for generations.
Even if the Council hasn’t yet decided to pursue municipalization, the appearance that it is preparing for litigation undermines public trust. Clearwater residents deserve transparency and honesty about where this process is headed, including how much it will cost.
They also deserve to know there are better, faster, and fairer ways to cut their electric bills right now.
Before the city spends another taxpayer dollar chasing the illusion of “public power,” it should do the truly public thing: admit that lower energy costs start with lower taxes, not higher government debt.
Clearwater doesn’t need to own its electric grid to help ratepayers. It just needs to stop taxing them for turning on the lights.
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Skylar Zander is state director for Americans for Prosperity–Florida.
