St. Pete rising power bills spark $590K feasibility study vote to leave Duke Energy, create city-run utility

ST. PETERSBURG, Fla. - St. Petersburg leaders are preparing for a high-stakes vote Thursday on whether to spend $590,000 to study leaving Duke Energy and launching a city-owned power utility. The move comes as residents demand relief from skyrocketing electricity rates.

St. Petersburg power fight

What we know:

Families are feeling the financial squeeze as electricity bills climb higher across the region.

The city of St. Pete’s 30-year franchise agreement with Duke Energy expires Aug. 1. Before that deadline hits, council members will decide whether to fund an eight-to-nine-month, $590,000 feasibility study with consultant Next Gen to collect data, map out costs and project potential savings for a municipal utility.

"Number one, for me, and I think for residents, is trying to lower their cost of living. Everything's gotten so expensive recently, and Duke charges the highest rates of any utility in the entire state," St. Petersburg City Council member Richie Floyd, D-District 8, said.

Neighboring areas like the city of Clearwater already conducted a similar study last year and found cost savings for customers.

Clearwater Mayor Bruce Rector said the city has not made a decision on its agreement with Duke, and he expects city council to revisit the topic in the next 60 days or so.

Cities like Key West, Orlando and Lakeland run their own utilities and save customers an average of 20% compared to Duke Energy, according to Floyd.

Municipal utility unknowns

What we don't know:

Officials have not yet confirmed how much it would cost St. Pete to build and operate its own utility network from scratch. It remains unclear how long a full transition would take if leaders voted to ditch Duke Energy after the study is completed. City leaders expect a robust debate on the pros and cons, but the final savings margins for local households are still undetermined.

Duke Energy response

The other side:

Duke Energy wants to keep St. Pete in its system and is expected to fight the potential split. 

In a statement to FOX 13, a Duke Energy spokesperson said, "Duke Energy believes renewing the franchise agreement offers immediate benefits to our customers and communities we serve. We remain committed to providing safe, reliable power and look forward to working with the city of St. Petersburg to renew our franchise agreement."

Resident-organized group pushes back

What they're saying:

The financial pressure prompted local organizers to petition City Hall, demanding leaders explore alternative power options instead of automatically renewing an agreement with the company.

"Sure, I think affordability is a huge aspect and I hope that is one of the benefits I get to enjoy. But I also care very much about having local control and being able to have a say in the infrastructure, especially when it comes to resiliency and dealing with hurricanes," Jason Scott, an organizer and St. Pete resident with the Dump Duke campaign, said.

Next steps for city council

What's next:

If the city council approves the funding on Thursday, consultants will immediately begin the data collection process. A final report would come back to city leaders in about eight or nine months.

"This is a once-in-a-lifetime, once-in-a-generation really, opportunity to assess whether or not we should continue with Duke," Floyd said.

Meanwhile, Rector expects Clearwater to revisit its own power utility data within the next couple of months.