Print

Email story

Comment

Email editor

Belleair approves 30-year contract with utility

Progress Energy Florida will make a substantial contribution to the community as part of the franchise agreement.

By LORRI HELFAND
Published July 14, 2006

BELLEAIR - The town's battle with Progress Energy Florida has come to an official end with city leaders voting 3-0 to approve a 30-year franchise agreement with the energy giant.

Mayor George Mariani Jr., a vocal opponent of the deal, abstained from Tuesday's vote. Commissioner Stephen Fowler was absent.

"Thank God, it's over. That's what the people wanted," Commissioner Gary Katica said.

In a November referendum, 54 percent of voters in Belleair rejected a proposal for the city to break ties with Progress Energy and run its own utility.

Progress Energy Florida is a subsidiary of Progress Energy, based in Raleigh, N.C. Six years ago, the town took the utility to court to enforce terms of its previous franchise agreement, which had a clause that allowed the town to buy the electric distribution system.

The court ruled in the town's favor.

For several years, town leaders had considered running their own utility. Startup costs were estimated at $9.5-million.

Relations between the town and Progress Energy, whose Florida operations are based in St. Petersburg, had deteriorated over legal battles and futile negotiations. The issue also caused a rift between residents who supported an agreement with the utility.

In May, town commissioners appeared to ignore the November vote, saying they planned to ask residents whether to accept Progress Energy's contract.

But in June, town leaders decided to vote on the contract themselves.

Along with the 30-year agreement, Progress Energy Florida will make a $250,000 community contribution and pay $500,000 to reimburse the town for past legal expenses.

[Last modified July 13, 2006, 22:22:19]