The St. Petersburg City Council has taken a significant step towards potentially ending its longstanding partnership with Duke Energy Florida and establishing a city-run electric utility. This move comes in response to local residents’ growing dissatisfaction with the current energy provider.
On June 4, 2026, the Council voted 4-3 to allocate up to $590,000 for a feasibility study. The study, to be conducted by Texas-based NewGen Strategies and Solutionswill assess whether forming a municipal-run utility would benefit the city. This decision follows the expiration of the 30-year franchise agreement with Duke Energy, set to end on August 1, 2026.
Assessing the feasibility of a municipal utility
A spokesperson for Duke Energy expressed their commitment to renewing the franchise agreement, highlighting the benefits it offers to customers and communities. However, the city’s exploration of alternative options has gained momentum, particularly in light of Clearwater’s recent analysis. Clearwater’s study, conducted by the same consulting firm, suggested that residents could save millions if the city formed its own utility.
Florida currently hosts 33 municipal electric power utilities, including those in Jacksonville, Orlando, and Tallahassee. The last city to develop its own utility was Winter Park, in 2005. The debate over public versus private power has intensified due to higher energy prices and increased utility disconnections in Florida.
Public support and opposition
Dozens of residents urged the council to approve funding for the study, citing Duke Energy’s monopoly status and rising electricity costs. Jorge Vazquez emphasized the lack of competition, while Susan Glickman of the CLEO Institute highlighted the potential benefits of removing the profit motive. Daniel Collettean educator, pointed out Duke Energy’s request for a significant return on investment, prioritizing shareholders over ratepayers.
Opponents of the study argued against spending $600,000 during a time of potential tax reductions and city service cuts. Jason MathisCEO of the Downtown St. Petersburg Partnership, questioned the necessity of a separate study for St. Petersburg. Chris Steinocherpresident and CEO of the St. Pete Chamber of Commerce, cited a recent Florida TaxWatch report advising against Clearwater operating its own utility. Duke Energy employees also attended the meeting to voice their opposition.
The deciding vote and next steps
After hours of public testimony, Council Chair Lisset Hanewicz cast the deciding vote in favor of the feasibility study. Hanewicz, who had previously voted against a similar motion, stated that the council needed more information to make an informed decision. The outcome of the study will shape St. Petersburg’s energy future and determine whether the city will continue its partnership with Duke Energy or forge a new path with a municipal utility.
