St. Petersburg considers municipal electric utility amid cost concerns

A coalition of local organizations in St. Petersburg has launched a petition campaign to potentially transition the city to a municipal-owned electric utility. Organizers aim to collect over 16,200 signatures to place a charter on the ballot, citing rising energy costs. According to Food and Water Watch, Duke Energy’s rates in Florida increased by 49% between December 2020 and January 2026.

However, a Duke Energy-commissioned analysis by Concentric Energy Advisors estimates that creating a municipal utility could cost between $2.75 billion and $4.1 billion. The study suggests it could take seven to 10 years to acquire and independently operate the system, with operations potentially beginning in 2033 or 2036. The projected costs include asset acquisition and the significant infrastructure required to separate St. Petersburg’s system from Duke’s existing network, such as new distribution lines and substations.

Local business leaders, including the St. Petersburg Downtown Partnership, have expressed concerns regarding the financial feasibility of the move, noting that the city faces other urgent infrastructure needs and may lack the necessary funds for such a massive expenditure.