Mayor Ken Welch has agreed to explore whether St. Petersburg should break from Duke Energy and create its own municipal utility—while also proposing a 10-year extension with the company.

Welch outlined his stance in a memo to council members Friday, one day after they voted 5-3 to order a feasibility study. The city’s current 30-year contract with Duke ends in August 2026. Welch said a shorter extension would provide time to analyze alternatives without locking the city into another decades-long deal.

“This approach gives us the opportunity to conduct a thorough, transparent analysis … while ensuring residents can rely on stable and dependable services,” Welch wrote.

Thursday’s vote marked the first time the full council has weighed in on an issue raised repeatedly by its Health, Energy, Resilience and Sustainability Committee. Councilmembers Gina Driscoll, Lisset Hanewicz and Mike Harting opposed the measure.

The resolution requires Welch to seek bids from consultants to study the feasibility of a city-run utility. Councilmember Richie Floyd called it an early step toward a “big decision coming up next summer.”

Residents pushing for the change have cited high bills, service reliability and Duke’s shareholder priorities. The utility reported $971 million in second-quarter net income, and its ownership is now drawing interest from Brookfield Asset Management, which recently made a $6 billion offer for a minority stake.

Clearwater is already spending $500,000 on a similar study. Some St. Pete officials, including Driscoll, prefer to wait for those results before launching their own. Welch agreed that Clearwater’s findings will be “instructive,” but said St. Petersburg must still conduct its own review, weighing costs, benefits, rates, clean energy potential and local control.

Even if St. Pete decided to create a municipal utility, Welch noted, the process would take years and could involve legal battles over eminent domain. Assistant City Attorney Jenaine Williams warned that Duke is “not a willing seller.”

Several council members stressed the importance of beginning the process now. “We’re running out of time,” said Councilmember Brandi Gabbard. “I see no danger in moving forward today. I see a lot of danger in not.”

Councilmember Deborah Figgs-Sanders echoed that the study is about education, not a predetermined outcome. “We’re not Clearwater. This is the City of St. Petersburg,” she said.

Welch added that negotiations with Duke could still update the city’s clean energy commitments during any 10-year extension. Council Chair Copley Gerdes, who supported the resolution, said he remains “far away” from approving any final plan.

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