St. Petersburg agrees to look at benefits of ditching Duke in favor of city-run electric utility
ποΈ The St. Petersburg City Council voted 4-3 to approve spending up to $590,000 to hire a consulting firm for a feasibility study on municipalizing its electric utility.
β‘ This decision comes as the city's current 30-year franchise agreement with Duke Energy Florida is set to expire on August 1, 2026.
π The council hired Texas-based NewGen Strategies and Solutions, the same firm that previously analyzed Clearwater's potential utility switch last year.
π¬ Ana Gibbs of Duke Energy Florida stated that renewing the franchise agreement offers immediate benefits and expressed commitment to providing safe, reliable power.
π₯ Dozens of residents testified in favor of the study, citing Duke Energy as a monopoly that has raised rates without competition over its contract term.
π Critics argue that investor-owned utilities prioritize shareholder profits over ratepayers, noting Duke's requested return on investment of 9.3% to 11.3%.
π° Some opponents questioned the $590,000 cost, suggesting the city could extrapolate findings from Clearwater's study instead of paying for a new one.
π€ Crystal Pruitt, a Duke Energy employee, defended the company by highlighting over $2.8 million in donations to St. Petersburg organizations and charities.
π³οΈ Council Chair Lisset Hanewicz cast the deciding vote, reversing her previous stance to support the study due to a lack of information for an informed decision.
ποΈ Florida currently has 33 municipal electric power utilities, with Winter Park being the last city to form its own utility in 2005.
π A federal report noted that utility companies disconnected over 2 million Floridians' electricity due to unpaid bills in 2024.
π’ Duke Energy serves approximately 2 million customers in Florida and is the second-largest investor-owned utility in the state behind Florida Power & Light.
- Duke Energy has donated more than $2.8 million to St. Petersburg organizations, charities, educational programs, workplace development initiatives, and nonprofits.
- Duke Energy remains committed to providing safe, reliable power and looks forward to working with the city of St. Petersburg to renew its franchise agreement.
- There are 33 municipal electric power utilities in Florida, including in Jacksonville, Orlando, and Tallahassee, demonstrating a viable model for city-run utilities.
- The City of Clearwater previously conducted a similar analysis that concluded residents could save millions of dollars on their utility bills if the city formed its own utility.
- Duke Energy serves around 2 million customers in Florida and is the second largest investor-owned utility in the state, indicating strong market presence.
- The St. Petersburg City Council voted to spend up to $590,000 to hire a consulting firm for a feasibility study on replacing Duke Energy with a city-run utility.
- Critics argue that spending $590,000 on a new study is unnecessary given that Clearwater recently completed a similar analysis concluding residents could save millions by municipalizing.
- Downtown St. Petersburg Partnership CEO Jason Mathis questioned the necessity of the study and cited potential property tax reductions as reasons to avoid additional spending during a time when every penny counts.
- St. Pete Chamber of Commerce president Chris Steinocher noted a Florida TaxWatch report recommending against Clearwater operating its own electric utility, suggesting similar risks may apply to St. Petersburg.
- Duke Energy's settlement with the Florida Public Service Commission in 2024 included a request for a return on investment between 9.3% to 11.3%, which critics argue prioritizes shareholder profits over ratepayers' interests.