St. Petersburg City Council Approves $590K Study for Municipal Utility
St. Petersburg City Council voted 4-3 to spend $590,000 studying whether to leave Duke Energy and create its own municipal utility before their franchise agreement expires in August 2026.
ST. PETERSBURG, FLORIDA — The St. Petersburg City Council voted 4-3 on Thursday to spend up to $590,000 to study whether the city should end its relationship with Duke Energy Florida and create its own municipal electric utility.
The council hired Texas-based NewGen Strategies and Solutions to analyze the costs and benefits of forming a city-run utility system. The decision comes as the city’s 30-year franchise agreement with Duke Energy is set to expire on August 1, 2026.
Responding to resident frustrations over utility costs, council members approved the consultant study to determine if municipal ownership would better serve St. Petersburg customers.
Duke Energy Responds to Council Vote
Following the vote, Duke Energy Florida provided a statement defending the current franchise arrangement. “Duke Energy believes renewing the franchise agreement offers immediate benefits to our customers and communities we serve,” said Ana Gibbs with Duke Energy Florida Corporate Communications.
“We remain committed to providing safe, reliable power and look forward to working with the city of St. Petersburg to renew our franchise agreement,” Gibbs added.
Clearwater Study Shows Potential Savings
NewGen Strategies and Solutions previously conducted a similar analysis for the City of Clearwater last year. That study concluded Clearwater residents could save millions of dollars on their utility bills if the city formed its own municipal-run utility.
Clearwater Mayor Bruce Rector recently told Fox-13 in Tampa that the city has not made a decision on its agreement with Duke Energy, indicating the neighboring municipality is still weighing its options.
Florida’s Municipal Utility Landscape
St. Petersburg would join 33 existing municipal electric power utilities in Florida if it moves forward with creating its own system. Major cities including Jacksonville, Orlando, and Tallahassee currently operate their own municipal utilities.
Winter Park, located just north of Orlando, was the last Florida city to develop its own utility in 2005. The debate over public versus private power has gained renewed attention as higher energy prices across Florida have sparked discussions about alternatives to investor-owned utilities.
The consulting study will provide city officials with detailed financial projections and operational requirements for establishing a municipal utility system. The analysis is expected to help council members make an informed decision about the city’s energy future before the Duke Energy franchise agreement expires next year.
