Ann Arbor City Council approves search for new utility, aims to heat city with clean energy

City contract with DTE Gas expires in 2027

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ANN ARBOR – City Council approved a resolution during its meeting on Monday to allow the city administrator to begin negotiations with DTE and other interested utilities with the goal of finding a renewable energy source to heat the city moving forward.

The move reflects the city’s A2ZERO goal to become carbon neutral by 2030. As it stands, Ann Arbor’s fossil fuel gas franchise with DTE Gas expires in 2027.

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“Ann Arbor residents are demanding energy that is clean, affordable, reliable, safe and healthy,” Ann Arbor Mayor Christopher Taylor said in a statement. “Negotiating a new franchise is a logical step consistent with the wishes of Ann Arbor voters who overwhelmingly passed a proposal in November to provide more clean energy choices and reduce dangerous pollution. Using clean, renewable energy to heat our homes and businesses will improve public health, reduce dangerous pollution that causes asthma, cancer and lung diseases, and save lives.”

According to a city release, more than 25% of Ann Arbor’s polluting emissions are produced by fossil fuel gas.

“We believe that no person should have to sacrifice their health and safety, or the wellbeing of their local community, to heat their home and business,” Ann Arbor City Council Member Jen Eyer said in a release. “That’s why we are committed to transitioning to cleaner energy sources that significantly reduce dangerous pollution, while improving the reliability, resilience, safety and affordability of the city’s energy. What we do in Ann Arbor to transition to clean, renewable energy can serve as a model for communities across the country.”

Listening sessions for residents will be announced soon in order to get input from community members about a new heating franchise. For more information, visit the city’s website.

To submit an idea of a question to the city, email franchisefeedback@a2gov.org.

To read the full resolution, click here.