St. Petersburg City Council members narrowly voted Thursday to authorize a $590,000 study to look at alternatives to Duke Energy.
But that doesn't mean a break with the utility is necessarily looming.
High utility prices and profits for North Carolina-based Duke Energy are providing the main arguments for the city starting its own utility.
But council member Brandi Gabbard said a big reason for the study is giving the city information on how much it could eventually cost residents, as the 30-year contract with Duke expires this summer.
"I do believe that while we were in the middle of this negotiation that we should have the information that we need to negotiate from a place of power and a place of knowledge," Gabbard said during Thursday's city council meeting. "Knowledge is power."
Gabbard said that doesn't mean that she would eventually vote to have the city start its own utility.
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Councilman Richie Floyd said now is the time to explore the city's options.
"I was 4 years old when this got signed last time," Floyd said of the long-term contract. "I would like to see us do everything we can to look at our options, and this is our opportunity right now."
Floyd and Gabbard voted for the study, along with Deborah Figgs-Sanders and Lisset Hanewicz.
Other council members cited the huge cost of buying electrical infrastructure from Duke, and how they would be able to respond in emergencies, like hurricanes.
Councilman Copley Gerdes voted against the study. He was joined by Gina Driscoll and Mike Harting. Driscoll said the city should concentrate on fixing its troubled wastewater utility.
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Gerdes said arguments that other cities in Florida have started their own utility ring hollow. The last city to do so was 20 years ago in Winter Park, near Orlando. Cities such as Orlando, Lakeland and Tallahassee started their municipal utilities in the early 1900s.
"It's been 100 years since any of these municipalities have created their own utility," Gerdes said. "Winter Park has 30,000 people inside of 6 square miles. We have 270 (thousand) across 111 square miles. It's light years different."
In 2005, Winter Park voters approved a referendum to start its own utility. The city's utility bills are now 28% lower than Duke's. The city has used the profits it makes to bury 81% of its power lines, meaning fewer outages during major storms.
Winter Park bought the electric distribution system in the city limits from Duke and buys power on the open market through long-term contracts. City Manager Randy Knight said they buy the bulk of the power through the Florida Municipal Power Agency, but had to buy energy through Duke after they bought the system.
Todd Fountain, Duke Energy Florida's storm director, said only Duke has the ability to respond to disasters, such as the spate of hurricanes in 2024 that left tens of thousands without power.
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"During the 2024 hurricane season, we mobilized over 26,000 resources in response to Hurricanes Debby, Helene, and Milton," Fountain told council members. "Similar to the ability to mobilize resources, we also have the ability to acquire inventory, through multiple states, and suppliers across the country. This includes transformers, wire, poles, all the material that's in high demand during a crisis."
Dozens of St. Petersburg residents asked council members to start a process of uncoupling from Duke. They cited the utility's high costs and guaranteed profit of around 10%, which is set by the state's Public Service Commission.
The vote authorizes NewGen Strategies and Solutions LLC to craft a study, with the cost capped at $590,000. That same company is conducting a similar study for Clearwater, which is also looking at unhooking from Duke Energy.
The city's 30-year contract with Duke expires in August. The utility will continue to provide power until a new contract is negotiated.
