The St. Petersburg City Council has taken a significant step towards potentially severing its longstanding partnership with Duke Energy Florida and establishing a city-operated electric utility. This move comes as the current 30-year franchise agreement with Duke Energy is scheduled to expire on August 1, 2026.
The Council voted 4-3 on June 4, 2026 to allocate up to $590,000 for a feasibility study. The study will be conducted by Texas-based NewGen Strategies and Solutions the same firm that recently analyzed a similar proposal for the City of Clearwater. That analysis suggested Clearwater residents could save millions if the city formed its own utility.
Public sentiment and economic factors fuel the debate
Dozens of residents urged the council to approve the study, citing concerns over rising electricity costs and the lack of competition. Jorge Vazquez a local resident, argued that Duke Energy’s monopoly status has led to increased rates. “Duke Energy is a monopoly, and under the course of its 30-year contract, has made our electricity more expensive,” he stated.
Susan Glickman a climate change activist with the CLEO Institute, emphasized that a municipal utility could prioritize community needs over shareholder profits. “If St. Pete were to municipalize, the profit motive goes away. And this could allow the city to pursue lower cost ways to meet the community’s energy needs,” she explained.
The debate over public versus private power has gained traction in Florida, particularly as energy prices have risen. A federal report released in April 2026 by the U.S. Energy Information Administration revealed that Florida had the second-highest number of electricity disconnections due to unpaid bills in the country.
Opposition and financial considerations
Not all residents and stakeholders supported the feasibility study. Several opponents argued that the city should not spend the money on the analysis given the pending proposal to reduce property taxes. Jason Mathis CEO of the Downtown St. Petersburg Partnership, questioned the necessity of the study, suggesting that the city could extrapolate data from Clearwater’s analysis.
Chris Steinocher president and CEO of the St. Pete Chamber of Commerce, pointed to a recent Florida TaxWatch report that recommended against Clearwater operating its own electric utility. Additionally, several Duke Energy employees attended the meeting to voice their opposition, highlighting the utility’s contributions to the community.
Duke Energy has been a significant corporate sponsor in St. Petersburg, donating over $2.8 million to local organizations, charities, and educational programs. The utility has also emphasized its commitment to providing safe and reliable power.
After hours of public testimony, the Council turned to debate and voting. The deciding vote was cast by Council Chair Lisset Hanewicz who had previously voted against a similar proposal. She explained that this time was different, as the council needed more information to make an informed decision.
“I voted no the first time, but I don’t have the information. I’m for going with the feasibility study,” Hanewicz stated. The study will now proceed, with the results expected to shed light on the potential benefits and drawbacks of a city-run utility.
As St. Petersburg moves forward with this exploration, the outcome of the feasibility study will be crucial in determining the city’s energy future. With 33 municipal electric power utilities already operating in Florida, the potential for St. Petersburg to join their ranks is a significant consideration for residents and policymakers alike.
