St. Pete City Council to vote on Duke Energy replacement study
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Organizers with the Dump Duke campaign at a recent news conference in St. Petersburg. Photo: Kathryn Varn/Axios
St. Petersburg City Council members are set to decide Thursday whether to pay for a study examining what it would take to ditch Duke Energy and launch a city-run electric utility.
Why it matters: Organizers with Dump Duke Florida campaign say it's a crucial step toward lower rates and more accountability for residents grappling with rising electric bills.
- But critics, including Duke, contend making the switch would be a lengthy, risky and expensive process with no guarantee of savings.
State of play: On the agenda for Thursday's City Council meeting is a resolution to pay $590,000 to consulting firm NewGen Strategies and Solutions to evaluate financial, legal and other considerations of transitioning from Duke to the city.
- City staff chose NewGen from six consultants that responded to a solicitation issued in January seeking proposals to carry out the study.
Flashback: It's the same firm that completed a similar study last year that found Clearwater residents could save millions if the city took over power from Duke.
- The report, which cost the city $504,000, said savings would average 7% annually for the first five years and 18% per year for the following 25 years.
The other side: Duke, in its own commissioned study, said it would cost Clearwater more than $1 billion to take over the company's equipment. It didn't include a rate comparison.
- A Duke official previously told Clearwater that its equipment isn't for sale and that the city would have to acquire it through the "lengthy, expensive and very complicated" process of eminent domain.
The big picture: Clearwater's contract with Duke was up for renewal in December while St. Pete's comes up in August, giving city officials a chance to assess their relationships with the corporate utility.
- At the same time, rising power bills and record heat have left Floridians desperate for a break.
What they're saying: The feasibility study "is our one opportunity within a generation to see if something different is possible for us," City Council member Richie Floyd said last week at a Dump Duke town hall.
- Floyd opened the door for the study last year when he asked his colleagues to call on Mayor Ken Welch's administration to issue the request for proposals.
- After a 5-3 vote supporting Floyd's measure, Welch agreed but also advocated for the city to sign a 10-year renewal with Duke while the city weighed other options, per the Tampa Bay Times.
What's next: Thursday's meeting starts at 1:30pm at City Hall.