St. Petersburg's 30-year Duke Energy agreement expires Friday: What it means for customers

ST. PETERSBURG, Fla. - One of St. Petersburg's longest-running agreements is set to expire Friday, but residents shouldn't expect to lose power when the calendar turns to August.

St. Petersburg & Duke Energy agreement

What we know:

The city's 30-year franchise agreement with Duke Energy expires at the end of the day. Duke says it will continue providing electric service to customers, even as city leaders continue studying whether St. Pete should eventually create its own municipal electric utility.

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Instead, Friday's deadline marks the beginning of a new phase in the city's relationship with its largest electric provider, with negotiations still unresolved and a feasibility study months away from completion.

Duke Energy says it will continue delivering reliable electric service to its customers in St. Pete after the franchise agreement expires.

The company serves approximately 161,000 customers within the city and says it remains committed to renewing the agreement with St. Pete while continuing to maintain and restore its electric system.

St. Pete electric debate

The backstory:

Earlier this year, the St. Petersburg City Council approved spending up to $590,000 on a feasibility study to determine whether creating a city-owned electric utility is financially and legally practical.

Consultants are expected to examine how much it would cost to acquire Duke's local electric infrastructure, how long such a transition could take and whether customers could ultimately save money.

No decision has been made to replace Duke as the city's electric provider. Duke Energy released the following statement to FOX 13 News Friday morning: 

 "There are no current negotiations, and the franchise agreement will expire at midnight July 31. Duke Energy is exploring the implications the franchise agreement expiration will have on the city and our company, while continuing our commitment to provide reliable service to our customers."

FOX 13 News has also reached out to the city of St. Pete for comment. We are waiting to hear back.

Dig deeper:

The franchise agreement governs Duke Energy's use of city-owned rights of way for utility infrastructure such as power poles, wires and related equipment.

In exchange, Duke pays the city a franchise fee based on electric revenues generated within St. Pete. The agreement has been in place for roughly three decades.

The expiration comes as city leaders evaluate whether St. Pete should join dozens of Florida cities that operate their own municipal electric utilities.

Supporters argue public ownership could eventually lower electric rates while giving local officials greater control over infrastructure investments and storm recovery.

Opponents caution that acquiring Duke's electric system could cost hundreds of millions of dollars and involve years of legal and regulatory challenges before customers would see any potential benefit.

Duke Energy grid modernization

The other side:

Duke Energy says renewing the franchise agreement is the best path forward for customers.

The company points to its investments in grid modernization, storm hardening and self-healing technology, along with its experience restoring power after hurricanes throughout Pinellas County.

Supporters of municipalization argue the city should fully examine alternatives before committing to another decades-long agreement with Duke.

Advocates say the feasibility study will provide city leaders with independent information about costs, potential savings and implementation challenges before any long-term decision is made.

St. Petersburg franchise numbers

By the numbers:

• 30 years: Length of the franchise agreement now expiring.
• 161,000: Duke Energy customers served in St. Pete.
• $590,000: Maximum amount approved for the municipal utility feasibility study.
• About eight months: Expected timeline for the study.
• Approximately $23 million: Annual franchise fee revenue generated for the city under the current agreement.

St. Pete energy study

What's next:

The expiration of the franchise agreement does not mean St. Pete is creating its own electric utility.

Instead, city leaders are expected to wait for the results of the feasibility study before deciding whether to pursue municipalization, negotiate a new long-term agreement with Duke Energy or consider another path forward.

For now, Duke says customers should continue to expect the same electric service while those decisions play out.

St. PetersburgDuke Energy