St. Pete advances feasibility study on leaving Duke Energy for city-owned utility, no final decision made

ST. PETERSBURG, Fla. - St. Petersburg City Council has officially voted to move forward with a feasibility study that will examine whether the city could leave Duke Energy and establish a municipally owned utility — but leaders stressed the decision does not signal an immediate breakup with the utility company.

St. Pete explores feasibility study

What we know:

On Thursday, the council agreed to spend up to $590,000 to hire a consulting firm to analyze whether a city-run power system could lower costs for residents and how such a transition would work.

Officials emphasized that the current agreement with Duke Energy remains in place, and the city is not ending its partnership at this time.

Duke Energy contract still in effect

Dig deeper:

The city’s 30-year franchise agreement with Duke Energy is set to expire in August. Until the feasibility study is completed, Duke will continue to provide electric service under the existing contract.

City leaders said the study process is expected to take about eight months.

Transition infrastructure cost projections

What we don't know:

Municipal administrators have not yet confirmed the projected capital costs required to purchase Duke Energy's regional assets or construct a standalone public grid from scratch. It also remains undetermined what specific savings percentages local households would actually see on their monthly statements if a municipal utility is eventually established after the data is returned. 

Rising energy costs concerns

The backstory:

The push for the study comes amid ongoing concerns from residents about rising electricity bills across the region. Supporters of the review say it is intended to explore whether a municipal utility could offer long-term savings.

Council members supporting the study pointed to affordability concerns and comparisons to other Florida cities that operate their own utilities.

Duke Energy responds to potential change

The other side:

Duke Energy has responded to the city’s decision, saying that renewing the franchise agreement would provide "immediate benefits" and ensure continued safe and reliable service for customers.

Community advocacy and debate continue

What's next:

St. Pete residents advocating for a review of alternative energy options have urged city leaders to consider long-term control, pricing and infrastructure resilience, especially during severe weather events.

If the study moves forward as planned, consultants will begin gathering data immediately. A final report is expected to be presented to city leaders in roughly eight to nine months.