News Summary Clearwater and St. Petersburg are exploring the potential for municipalizing their electric grids by taking control from Duke Energy. With Clearwater allocating $500,000 for feasibility studies, the financial implications, infrastructure challenges, and historical precedents in other cities raise questions about the viability and sustainability of such initiatives amidst increasing storms and energy demands. Clearwater, Florida – Cities along Florida’s west coast, notably Clearwater and St. Petersburg, are considering the potential benefits and drawbacks of taking control of their electric grids from Duke Energy and forming city-run power companies. Clearwater has set aside $500,000 to assess the viability of this municipalization effort, while local activists in St. Petersburg, led by the Democratic Socialists of America, are advocating for similar investigations by the City Council. An analysis from Independent One estimates that Clearwater would need to invest over $1.1 billion to acquire Duke’s assets and establish a municipal utility. St. Petersburg, which has a population approximately twice that of Clearwater, could face even higher municipalization costs. Should Clearwater proceed with the takeover, the anticipated annual interest payments for the city’s debt could exceed $50 million, raising concerns about financial sustainability. The issue of maintaining a reliable electric grid has become increasingly complex, particularly in light of rising storm frequency and severity. For instance, after Hurricanes Debby, Helene, and Milton, Duke Energy deployed 27,000 workers to restore power to 2 million customers. Additionally, investments made by Duke Energy before these storms reportedly saved over 300 million minutes of outages. Clearwater’s current electric grid poses challenges, as only one of the city’s ten substations is situated on city property. To develop a separate municipal grid, significant investments would be necessary for constructing new substations and potentially laying underwater cables. These infrastructure needs add to the financial burden of the municipalization proposal. Historically, municipalization efforts in other cities such as Boulder, Colorado, and Long Island, New York, have resulted in ineffective outcomes, including considerable debt and rate increases for consumers. Despite assertions that municipal ownership could lead to lower costs and enhanced clean energy initiatives, Clearwater and St. Petersburg currently generate millions in annual revenue from existing franchise fees and taxes collected from Duke Energy, which may be forfeited under city ownership. Proponents of municipalization argue this change could facilitate improved local service and investment in renewable energy sources. However, critics emphasize the financial risks associated with such a transition, casting doubt on its feasibility given the operational complexities involved. The notion of municipalizing electric utilities is appealing, representing an ideal of local control. Nonetheless, concerns over financial ramifications prompt skepticism regarding the practicality of such advancements. Rather than pursuing potentially unfeasible takeovers, some experts suggest that cities should focus on negotiating better terms with their current utility providers to enhance service without incurring substantial costs. The discussions surrounding municipalizing electric utilities in Clearwater and St. Petersburg are ongoing, as both cities weigh the potential implications of such a significant shift in their energy management approach. As cities across Florida consider this possibility, the debate spotlights the critical intersection of local governance, public service, and financial responsibility. Deeper Dive: News & Info About This Topic HERE Resources Additional Resources Canary Media: Publicly owned utilities not a panacea but can produce customer benefits St. Pete Catalyst: Duke city-owned utility would cost over $1 billion NOLA.com: Power to the People – Could New Orleans take control of its power utility? MLive: Dump DTE group accuses Ann Arbor officials of submitting to Trump New York Times: Cities weigh taking electricity business from private utilities
Author: STAFF HERE PETERSBURG WRITER
ST PETERSBURG STAFF WRITER The ST PETERSBURG STAFF WRITER represents the experienced team at HEREStPetersburg.com, your go-to source for actionable local news and information in St Petersburg, Pinellas County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Grand Prix of St. Petersburg, Localtopia, and SHINE Mural Festival. Our coverage extends to key organizations like the St. Petersburg Area Chamber of Commerce and St. Pete Downtown Partnership, plus leading businesses in finance, manufacturing, and healthcare that power the local economy such as Raymond James Financial, Jabil, and Bayfront Health St. Petersburg. As part of the broader HERE network, including HEREJacksonville.com, HEREOrlando.com, HERETallahassee.com, and HERETampa.com, we provide comprehensive, credible insights into Florida's dynamic landscape.
