ANN ARBOR, Mich. – In about two months, Ann Arbor voters will decide whether the city should take its next step toward forming a city-run electric utility and potentially moving away from DTE Energy.
The proposal, qualified for the November ballot after thousands of residents signed a petition, according to Sean Higgins, president of Ann Arbor for Public Power.
The vote in November would let the city create a board to explore forming a municipal electric utility.
Higgins said the board would be made up of elected and appointed officials.
“I’m just so excited that we’ve just got so much energy built up around this,” Higgins said.
Higgins leads the group pushing for voters to decide who supplies their power: DTE or a city-run utility.
He added, after the step in November, the next thing to do would be for the city to do a second feasibility study on this topic.
“This study would essentially assess what would the price be of these assets, what would the city need to pay to DTE to acquire these assets and therefore what’s the size of the bond the city would need to take out,“ Higgins said. “How would that need to be paid out in electric rates?”
Higgins said interest in moving away from DTE grew as residents raised concerns about both the price of electricity and the reliability of service.
Some city officials, however, said the municipal utility push is misguided.
“Frankly, I think it’s reckless and ill-conceived, confusing and a little bit deceptive,” City Council member Erica Briggs said.
Briggs said she has heard from constituents who are unclear about what the ballot proposal would do and whether it overlaps with the city’s broader clean energy and sustainability energy utility.
She also raised concerns about the potential price tag.
A 2023 city feasibility study estimated that acquiring DTE’s local electric assets could cost anywhere from nearly $300 million to more than $1 billion.
Higgins noted the range is too broad.
Some residents also worry about the scale of the undertaking.
“I think it’s too big of an undertaking for Ann Arbor to do,” said Ann Arbor resident Mary Jo Goldstein, who opposes the idea. “I think the cost of it is- I can’t imagine how much money it would cost.”
Higgins said residents with questions can contact Ann Arbor for Public Power to learn more about the proposal and what a city-run utility could entail.
Briggs also mentioned she has been speaking with constituents and answering their questions on this topic if they stop her.
Voters will make the final decision on the charter amendment in November.
Local 4 reached out to DTE about this topic. They sent a statement:
“The proposal to take over Ann Arbor’s electric grid will cost the City of Ann Arbor nearly $1 billion on day one, leading to skyrocketing costs for Ann Arbor businesses and residents.
Last year, DTE delivered the best electric reliability Ann Arbor has experienced in nearly 30 years. It’s proof that DTE’s five-year, $270 million plan to modernize Ann Arbor’s electric system is working. We will remain focused on our work and will continue to deliver the reliable, affordable, clean energy future Ann Arbor deserves."
DTE