Ann Arbor, Mich. — Voters in Ann Arbor will decide in November whether to clear the way for a city-owned electric utility, as Proposal E pits a grassroots public power campaign against DTE Energy and most of the City Council.
Ann Arbor for Public Power, known as A2P2, gathered enough signatures to put the measure on the ballot. If voters approve Proposal E, a new Ann Arbor Municipal Electric Utility Board would study, then prepare to acquire assets and establish a municipal utility. The movement launched in 2020 and grew out of a 2019 city pledge to eliminate carbon emissions by 2030, along with frustration over storm outages.
The City Council voted 10-1 to oppose Proposal E and directed its city attorney to challenge it in court. Council members argued the proposal wording would lock the city into too many commitments and left unclear who has authority to borrow money.
DTE Energy, the primary electric utility for the city, said a takeover would cost the city nearly $1 billion on day one. The company points to a five-year, $270 million plan to modernize the Ann Arbor system. A DTE rate hike last March raised bills 4.6% for a typical customer.
Supporters question that cost estimate. Ann Arbor does not have its own power plant, so a city utility would likely buy power through contracts with solar, wind and other generators.
