St. Pete Looks at Creating City-Run Power Company to Replace Duke Energy

City leaders voted 2-1 to draft a plan asking for study proposals - a move that could end St. Petersburg's 100-year relationship with Duke Energy in 2026.

Families saw their power bills jump 11% from 2023 to 2024, pushing rates way above Florida's average. This increase sparked more calls from residents to break away from Duke.

"I've been having some conversations behind the scenes with some concerned residents and stakeholders that do not want us to just rubber stamp a new agreement. They want council involved... They want us to look at alternatives – actually running our own municipal [utility]," said Councilmember Brandi Gabbard to the St. Petersburg City Council.

Switching to public power would need $2 billion just to buy existing equipment. Chair Copley Gerdes notes this could add $80 to monthly bills just for debt payments, before even counting actual power costs.

Throughout the US, thousands of cities run their own power systems, including Orlando. These public utilities often deliver cheaper rates and better local control than private companies, according to Ursula Schryver from the American Public Power Association.

Yet some disagree. Corey Givens wants to use Duke's yearly $24 million payment to help people with their bills right now. The city currently has no money for utility help.

Next door in Clearwater, leaders set aside $500,000 to look into the idea. Their Duke-funded research showed buying equipment would cost $1 billion - for just half as many customers as St. Petersburg has.

The full council still needs to approve both studying the switch and picking experts. Several members think a change is unlikely anytime soon, given the huge costs and challenges ahead.

Winter Park proves it can be done - they made the switch despite big power companies fighting it. Now other cities look at their success when thinking about public power.

This happens as power bills rise across Florida. Florida Power & Light wants yearly rate increases adding up to $10 billion that would hit millions of homes across the state.