New Port Richey is considering a new agreement with Duke Energy that would grant the utility exclusive rights to provide electric service in the city and greater flexibility to maintain poles, power lines and other equipment in public rights-of-way.
The proposal comes as several Florida cities are reexamining their relationships with investor-owned utilities. Earlier this month, St. Petersburg approved a study on whether it could leave Duke Energy and create a city-run electric utility, while Clearwater is conducting a similar review.
Against that backdrop, New Port Richey is moving toward renewing its relationship with Duke under an updated franchise agreement. The City Council is scheduled to consider the first reading of the agreement June 16, one month before the existing contract expires. The current agreement has been in place since 1996, when the city contracted with Florida Power Corp., which later became part of Duke Energy through a series of mergers.
Under the proposal, Duke would move from a nonexclusive arrangement to exclusive rights to provide electric service within the city. City staff said that structure is common in similar franchise agreements but noted that the ordinance would expand Duke’s legal rights and operational protections compared with the current contract.
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The proposal would also give Duke greater autonomy to maintain infrastructure in city rights-of-way. If a conflict arises between the franchise agreement and other city regulations governing access to those areas, the franchise agreement would control.
Duke would continue paying the city a franchise fee equal to 6% of the revenue it generates within New Port Richey, the same rate included in the current agreement.
The proposal would shorten the initial term from 30 years to 15 years while adding two automatic five-year renewal options. If both renewals are exercised, the agreement could remain in effect for 25 years.
The city would gain additional oversight tools. It would be able to audit Duke’s records every three years instead of every five years, and the utility would be required to provide additional reporting, including information on subcontractors working within the city.
The agreement also adds requirements covering project coordination, infrastructure restoration, pole abandonment procedures and emergency work.
City staff recommended approval, describing the proposal as an update to a nearly 30-year-old agreement. The ordinance would require a second reading before taking effect.
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