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ST. PETERSBURG, Fla. (WFLA) — Officials in St. Petersburg are evaluating the possibility of establishing a city-operated electric utility, which could mark the end of its long-term partnership with Duke Energy.
City authorities have initiated a feasibility study for a municipal electric utility to assess whether a city-owned energy service is viable from financial, legal, and operational perspectives, and if it would provide improved service to the community.
This decision follows persistent customer grievances over escalating costs, power reliability issues, and a perceived lack of transparency from Duke Energy, which currently supplies electricity to the city.
These concerns have recently sparked public protests.
“Electricity is a vital service, and it should not be driven by profit,” a protester remarked during a demonstration last month. “Residents are finding it difficult to manage their bills, and knowing that a portion of their payments is directed to shareholders is disheartening.”
Under the city’s plan, the study would roll out in three phases.
First, consultants would evaluate the costs, infrastructure, regulations, and legal hurdles involved in creating a city-run electric utility.
The second phase would explore whether St. Petersburg could operate a utility powered entirely by renewable energy and compare that option to Duke Energy’s Clean Energy Connection program.
The final phase would outline possible transition plans and focus on public education and community feedback.
City officials say phases two and three would only move forward if approved later.
St. Petersburg isn’t alone in questioning its relationship with Duke Energy. Clearwater is also exploring its own options after residents raised similar concerns.
“I’m paying five to six hundred a month,” one Clearwater resident said.
Duke Energy responded with a statement to 8 On Your Side early Wednesday morning on the matter:
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 both St. Petersburg and Clearwater to renew our franchise agreements.
Ana Gibbs, Duke Energy | Corporate Communications
Duke Energy’s current 30-year franchise agreement with St. Petersburg expires next year. The contract does not include a purchase option that would allow the city to automatically take over Duke’s local electric infrastructure — a factor consultants would have to examine closely.
The city’s feasibility study process includes a period for consultant questions, proposal submissions, evaluations, interviews and an anticipated recommendation to City Council later this year.
For now, city leaders stress this is only a study — not a decision.