POSSIBLE POWER PLANT PURCHASE

The Northwest Florida Daily News is reporting that the Destin City Council has voted to exercise an option that preserves the city’s right to buy Gulf Power’s electric plant and other property within the city. The council also agreed to continue to negotiate a potential new franchise agreement with Gulf Power. Destin entered into a 30-year franchise agreement with Gulf Power in May 1986 and that contract is set to expire September 21st. A study last year determined that the estimated cost to buy the Gulf Power utility in Destin would be about 71 million dollars. The city also would have to include the cost of paying utility employees, who likely would be well-paid union workers. While the city would have the right to purchase the plant it would not be obligated to do so.