Sean Schrader, spokesperson for the St. Pete Energy Alliance and the Clearwater Energy Alliance, said acquiring an electric grid through municipalization requires extensive borrowing, involves prolonged court battles, and leads to elevated expenses for residents.
“Clearwater and St. Pete are different cities, but the core math is the same: buying an electric grid is a massive, debt-financed acquisition,” said Schrader, Director of Operations. “At the end of the day, we just need to make sure people have the facts. It’s going to cost a ton of money, there would probably be years of litigation. In the end, we would face rising costs and end up with a government-controlled power company.”
The statement was provided in response to a question comparing the municipalization initiatives of Clearwater and St. Petersburg. According to Schrader, The St. Pete Energy Alliance was formed to offer residents organized, fact-based insights as government takeover discussions intensified. It focuses on clarifying details such as acquisition costs, debt structures, litigation timelines, operational plans for emergencies, and customer protections if projections fail.
Independent analyses project Clearwater’s municipalization costs between $1.13 billion and $1.25 billion for a 2029 start or $1.38 billion to $1.52 billion for 2034, covering asset purchases, system separation, startup, and transactions. These figures rely on assumptions about timelines and legal outcomes, with ratepayers bearing risks if costs exceed estimates. Similar efforts in Florida cities highlight potential for debt burdens twice annual budgets, equating to thousands per resident.
In St. Petersburg, grid seizure estimates start at $2 billion, financed through bonds that could add $7,500 in debt per resident. Litigation over eminent domain and asset valuation might span years, inflating expenses with legal and consulting fees. Regional examples show transitions disrupting services with no guarantees of lower rates amid operational complexities like storm response and cybersecurity.
Nationwide data indicates that 64 municipalization attempts over 25 years mostly failed or were abandoned due to rising costs and challenges. Chicago analyses predicted initial rate hikes under municipal control. Maine voters rejected a statewide proposal after studies revealed prolonged customer disadvantages tied to acquisition expenses.
Schrader is a lifelong resident of Clearwater, Florida and in addition to speaking on behalf of the St. Pete and Clearwater Energy Alliances serves as Director of Operations at Shumaker Advisors Florida. He holds a B.S. in Business Management and an MBA from the University of South Florida St. Petersburg. His affiliations include the Clearwater Charter Review Committee and the St. Petersburg–Clearwater International Airport Noise Abatement Task Force.
