St. Petersburg’s 30-year franchise agreement with Duke Energy is set to expire, but residents should not expect any disruptions in their electric service. The city is considering creating its own municipal electric utility, with a feasibility study underway to examine the costs and potential benefits.

Background

The current agreement, which has been in place for roughly three decades, governs Duke Energy’s use of city-owned rights of way for utility infrastructure. In exchange, Duke pays the city a franchise fee based on electric revenues generated within St. Petersburg.

The expiration of the agreement marks the beginning of a new phase in the city’s relationship with its largest electric provider, with negotiations still unresolved and the feasibility study months away from completion. Duke Energy has stated that it will continue to provide reliable electric service to its customers in St. Pete, serving approximately 161,000 customers within the city.

Debate Over Municipal Utility

Supporters of creating a municipal electric utility argue that it could eventually lower electric rates and give local officials greater control over infrastructure investments and storm recovery. However, opponents caution that acquiring Duke’s electric system could cost hundreds of millions of dollars and involve years of legal and regulatory challenges before customers would see any potential benefits.

Duke Energy has pointed to its investments in grid modernization, storm hardening, and self-healing technology, along with its experience restoring power after hurricanes throughout Pinellas County, as reasons why renewing the franchise agreement is the best path forward for customers.

Original reporting: Tampa Bay Florida News (HLL/CB) — read the source article.