Insight
Downtown Partnership CEO questions city’s Duke approach
“If the city does take over during the litigation period, that would give businesses pause.”
With St. Petersburg’s franchise agreement with Duke Energy set to expire this week and no negotiations underway, Downtown Partnership CEO Jason Mathis says the city is creating unnecessary uncertainty while it studies whether to municipalize its own electric utility, despite Clearwater’s own feasibility study and recent decision to extend a 30-year agreement with Duke.
Jason Mathis
“It seems like a mistake for the city to be standing on this precipice a week before the agreement ends and not have a path for negotiations,” Mathis told the Catalyst. “They have a path for a study, but not negotiations.”
A franchise agreement gives Duke the right to use city rights-of-way to operate its electric system while requiring the utility to pay the city a franchise fee. The current agreement expires at midnight Friday.
Duke has said it will continue providing reliable electric service regardless of the agreement’s status, but confirmed there are currently no negotiations with the city over a renewal.
Mathis said he does not expect residents or businesses to lose power if the agreement lapses. His concern is the erosion of investment that will occur when negotiations halt: “I don’t think they will be looking to make major investments in this community when the path is uncertain.”
Mathis continued: “I don’t know what incentive there will be for Duke if it’s unclear whether they have a home here in St. Pete.”
Duke Energy supports St. Petersburg through targeted community grants, including a $75,000 award to the University of South Florida St. Petersburg for STEM education programs. The company also provided a $50,000 emergency grant to help the university recover from a campus fire, alongside a past $1 million investment for a solar battery storage project.
In the meantime, the city is moving forward with a municipalization study that will examine whether St. Petersburg should acquire Duke’s local electric system and establish a municipally owned utility. City officials have said they did not want to negotiate a long-term franchise agreement before the study is complete.
However, Clearwater recently completed its own study to weigh municipalizing energy, but deemed it too risky, opting to renew its franchise agreement with Duke.
So why is St. Pete conducting another study rather than piggybacking Clearwater’s?
“Surely we have people smart enough from the city to extrapolate the Clearwater study and apply it to St. Pete and save $600,000 of taxpayer money,” Mathis said. When asked whether municipalized electricity would deter businesses from moving to St. Pete, Mathis responded that he does not believe it will discourage, but that a prolonged legal battle over municipalization could become a concern.
Since Duke doesn’t intend to sell to the city outright, eminent domain is the only recourse for the city to acquire Duke’s infrastructure and turn it over to city control. “If the city does take over during a litigation period,” he said, “that would give businesses pause.”
S. Rose Smith-Hayes
July 30, 2026at3:05 pm
I have never ever had a problem with Duke when it comes to their service to my home. I have the plan where I pay the same amount each month. It renews each year if I agree. Duke gave Duke of Florida $5 billion in 2025, If I am not mistaken. I will check on that.
S. Rose Smith-Hayes
July 28, 2026at9:21 am
I recommended several times that the St. Pete City Council Members meet with Managers of Lakeland’s Electric and Water to find out what happens when the City takes over. Lakeland manages its electricity and water. It seems our City People would rather spend money on useless projects. Again, City of Clearwater Leaders have something to say, please listen to them.
Mona Hawkins
July 28, 2026at7:16 am
Who couldn’t have seen this coming? I agree with Hal F. and John C. A study should have been started years before now. And a good point about incorporating Clearwater’s study before spending 600k on a separate one. Because of waiting until the last minute, the city has put itself in a bad negotiating position for a shorter extension while studying the issue.
Maria Scruggs
July 28, 2026at9:22 am
I agree. I have said repeatedly the city should have started plans for these negotiations years ago. I simply don’t understand it!
John Burgess
July 27, 2026at11:51 pm
This situation is a profound reason to vote in August and November:
NO on Welch, NO on any sitting council member,
NO MORE RIDICULOUS boondoggles in St. Petersburg!
Hal Freedman
July 27, 2026at10:35 pm
Typical of the current administration. The mayor’s office has gotten so many things wrong in the past 5 years that it’s no surprise they are late to this party. Not saying it would be good or bad to municipalize the utility…just saying any study should have been done years ago.
Donna Kostreva
July 27, 2026at8:14 pm
Duke energy did a fine job at my house after the hurricanes. The hot wires on my garage roof were repaired, power was restored and the crew was awesome! Council stop wasting taxpayer cash on a study to see if we can make our own power. You haven’t be able to do a thing with the Gas Plant area in years. You got a grant for buses that ride around empty every time I see them. You have ruined car transit with ridiculous bike and bus lanes. Negotiate a better contract with Duke. THEY know how to get things done!
John Calcagni
July 27, 2026at6:08 pm
The real question is why did the city not start to think this through before the agreement expired? Could they not started to review the issue sometime in the last 30 years? Asleep at the switch? (Pun intended)
Irv Cohen
July 27, 2026at4:11 pm
I totally agree with Jason’s comments
Clearwater has already done their study and there is no need for St Pete residents to spend $600k, especially with all the uncertainty pertaining to potential changes to property taxes
and a city that cannot process water bills properly, certainly cannot take over an electric utility