The City of St. Petersburg took a major step Thursday toward potentially ending its decades-long relationship with Duke Energy.
The St. Petersburg City Council voted to approve a $590,000 contract by a narrow 4-3 vote for a feasibility study that will examine whether the city should create its own municipal electric utility instead of continuing service through Duke Energy.
The study, which will be conducted by NewGen Strategies and Solutions, will analyze the potential costs, savings and legal hurdles involved in creating a city-run electric system.
The vote comes as St. Petersburg’s current franchise agreement with Duke Energy is set to expire in August. The agreement has been in place for 30 years.
Over 100 people spoke during public comment, most of whom were in favor of the study. They cited the rare opportunity to explore other options with the contract ending and a need for more affordable utilities.
“The best thing is to put power in the hands of the people,” St. Petersburg resident Dominic Medino told council members before the vote.
Another resident, Elizabeth Winter, urged council members to move forward.
“For present and future generations in St. Pete, the time to dump Duke Energy is now,” Winter said.
Council members who voted in favor said having concrete data will help inform a decision.
“I’m asking us to at least be informed,” said District 5 Council Member Deborah Figg-Sanders, who voted in favor of the study. “Having the information is not going to hurt us.”
NewGen also recently completed a similar study for Clearwater, which is also considering leaving Duke Energy. That analysis estimated customers could save about 10% on their electric bills during the first year of municipal ownership, with additional savings over time.
Public power advocates with the group Dump Duke hope St. Petersburg will see similar results.
“This feasibility study will really show our options and really guide us to our energy future here in St. Pete,” said Jason Scott with Dump Duke.
However, the effort to create a municipal utility could face significant legal challenges. Duke Energy has previously indicated its electric infrastructure is not for sale, meaning the city could ultimately need to pursue eminent domain proceedings to acquire the system.
Those opposed to the public power initiative — both in public comment and on the council — also expressed concerns over a loss of jobs and the cost to the city of not only conducting the study, but setting up the utility. Those concerns were exacerbated by a ballot measure approved by the state legislature last week that could eliminate homestead property taxes starting next year.
“This is something we can’t afford right now at a time when we are looking at various cuts to our budget and who knows how bad it’s going to get with property taxes,” said District 6 Council Member Gina Driscoll, who voted against. “That worries me. This is a question on timing.”
Representatives from Duke Energy spoke during public comment, stating their commitment to the city and reminding residents of various cost-saving programs they offer.
“We genuinely care, and we’re committed to helping our customers that we can,” said Michael Gordon, a manager with Duke.
Duke Energy also provided a statement to 10 Tampa Bay News defending its relationship with the city.
“Duke Energy believes renewing the franchise agreement offers immediate benefits to our customers and communities we serve,” a Duke spokesperson said. “We remain committed to providing safe, reliable power and look forward to working with the city of St. Petersburg to renew our franchise agreement.”
Even though the current franchise agreement expires in August, Duke’s service will not automatically end. The existing agreement will remain in effect until a new contract is negotiated or the city decides to pursue another path.